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Cancelling CC avoiding GSD

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  • 18-08-2010 3:31pm
    #1
    readyletsgo
    Registered Users Posts: 3,276 ✭✭✭


    Hi, just wondering, if i am to cancel my CC with tesco, when is the best time to cancel so i can avoid the government stamp dute charge?
    Would i be best to cancel on the 1st of march or 31st march or april?
    How do i avoid this charge? Or do i have to pay this either way?
    Thanks!!!!!!


    P.S. I'm just planning ahead....


Comments

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    #2
    NuMarvel
    Registered Users Posts: 3,279 ✭✭✭NuMarvel


    The Stamp Duty is charged on a preceeding year basis, so you pretty much will have to pay it no matter when you cancel the card.

    However, cancelling it before the 1st April of a given year is a better value for money proposition as cancelling it after 1st April means paying two charges, one for last year and one for the current year (even if the current year is only a few weeks long).

    FYI, if you switch to another provider mid year, you only have to pay the charge once for that year. The new provider won't charge you if you give them confirmation from the previous provider that you've paid the stamp duty.


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    #3
    GerardKeating
    Registered Users Posts: 7,652 ✭✭✭GerardKeating


    NuMarvel wrote: »
    However, cancelling it before the 1st April of a given year is a better value for money proposition as cancelling it after 1st April means paying two charges, one for last year and one for the current year (even if the current year is only a few weeks long).

    I thought the stamp duty was paid on the calendar year ?


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    #4
    NuMarvel
    Registered Users Posts: 3,279 ✭✭✭NuMarvel


    ATM and debit/laser cards are the calendar year, but credit cards are still the old tax year (with thanks to the Citizens Information website).


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    #5
    readyletsgo
    Registered Users Posts: 3,276 ✭✭✭readyletsgo


    Thanks so much guys! I just wasnt too sure about the timing of it.
    I will cancell my card at the start of march and pay the gsd for 2010/11 as i will not be opening another card so no reason to pay 2011/12 gsd in april if cancelling.

    Cheers!!!


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    #6
    readyletsgo
    Registered Users Posts: 3,276 ✭✭✭readyletsgo


    Sorry to bring up this old topic guys, but, I came into some money there and I want to us it to clear my 2 credit cards over the next week or two.

    Now I have the Tesco credit card at €2000 and I have the Halifax(bank of scotland now) at €1950.

    Now I rang Tesco re cancelling the card and the guy just said to close this card I should ring up with my details and get the closing balance and they will set up a standing order to clear the balance and then next month I would be charged the final intrest rate on that amount. Would I be better to clear the balance myself now and then ring up a week later and cancel the card to avoid large charges? I'm just guessing the final balance will be the intrest and government charges? Am I right in thinking this?

    Then with the Halifax(bank of scotland now), I pay 70 odd a month to this credit card/loan now, would I do the same and send the total amount now and then ring up a few days later and ask for the final charges?

    Thanks guys!

    EDIT: Also so you know, I have a standing order set up for payments each month to both of these accounts.


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