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Credit Card Stamp Duty

  • 23-04-2018 7:24pm
    #1
    satnavadays
    Registered Users Posts: 164 ✭✭


    I had a student credit card for the last number of years with UB and recently moved to one of their other credit cards. I cancelled the student card in early March and made all payments etc.

    Last week I received a closing statement charging €30 stamp duty on the old card despite the fact that I had paid SD on the old card in April 2017. Effectively I'm being charged stamp duty twice in the one year for the same card? Has anyone every come across this before?

    I looked online and from my understanding SD should only be charged once in the year.


Comments

  • #2
    1huge1
    Registered Users, Registered Users 2 Posts: 6,173 ✭✭✭1huge1


    satnavadays wrote: »
    I had a student credit card for the last number of years with UB and recently moved to one of their other credit cards. I cancelled the student card in early March and made all payments etc.

    Last week I received a closing statement charging €30 stamp duty on the old card despite the fact that I had paid SD on the old card in April 2017. Effectively I'm being charged stamp duty twice in the one year for the same card? Has anyone every come across this before?

    I looked online and from my understanding SD should only be charged once in the year.

    Think I remember having the same issue when I closed by AIB account. To close the account I had to pay the stamp duty for the next year.

    So by the sounds of it, it was the same for your old card, you must of been past the cut off point for when they deem the start of a new stamp duty period when you closed the account.


  • #3
    satnavadays
    Registered Users Posts: 164 ✭✭satnavadays


    I closed it in March to make sure it would be closed before April but they must have another cut-off point. I also got charged SD on the new card.


  • #4
    Sarn
    Registered Users, Registered Users 2 Posts: 3,086 ✭✭✭Sarn


    Stamp duty is collected for the preceding year on 1 April. Therefore, as you cancelled in March the duty was correctly collected in April.

    I think you can get a letter stating that you payed stamp duty on one card and get the duty on the new card refunded.


  • #5
    28064212
    Registered Users, Registered Users 2 Posts: 10,750 ✭✭✭✭28064212


    Stamp duty on cards is charged in arrears. The €30 you paid in 2017 was for the 12 months up to then. The €30 you now owe is for the period from then until now. If you hadn't closed the account before the start of April, you would have had to pay €30 at the start of April and then another €30 when you closed it

    http://www.citizensinformation.ie/en/money_and_tax/tax/duties_and_vat/stamp_duty_on_financial_cards.html#l98a57

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  • #6
    goldenhoarde
    Registered Users, Registered Users 2 Posts: 861 ✭✭✭goldenhoarde


    satnavadays wrote: »
    I closed it in March to make sure it would be closed before April but they must have another cut-off point. I also got charged SD on the new card.

    You can get a letter of closure from the one you closed to say you paid it for the year and then the new card will not charge you and should refund it.

    Stamp duty is generally collected on 1 April for the preceding year. The tax year for the stamp duty begins on April 2.


    Check here for more info

    http://www.citizensinformation.ie/en/money_and_tax/tax/duties_and_vat/stamp_duty_on_financial_cards.html

    As per 28064212's post


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  • #7
    Quackster
    Moderators, Regional South Moderators Posts: 5,826 Mod ✭✭✭✭Quackster


    satnavadays wrote: »
    I closed it in March to make sure it would be closed before April but they must have another cut-off point. I also got charged SD on the new card.

    As you closed one credit card account and then opened another, you're not liable for stamp duty on your new account for the same year.

    As they're both with the same bank, just give them a buzz and explain to them you've been incorrectly charged stamp duty on your new card.


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