Changing Credit Cards - How to avoid double duty ?

Omnipresence

Hello,
I am wondering when is the best time to cancel one credit card and start another to avoid paying the 40EUR government charge on both in one year.

Any info appreciated ... I heard the government were gonna abolish this double take but haven't seen anything official about it...

-A

Omnipresence

Bump ?

Chopper

When is the stamp duty collected?

Stamp duty is collected in arrears. For example, you can expect that the stamp duty arising in the calendar year 2006 will be charged to your account on 31 December 2006.

Interim Arrangements

Under previous legislation Institutions charged the stamp duty to accounts at the end of their accounting year. In future all accounts will be charged at the end of the calendar year. However, transitional arrangements to bring the collection period into line with the calendar year may result in some account holders being requested to pay the charge for shorter accounting periods such as three months or 9 months during 2005. For example, you may see charges of €2.50 or €7.50 in stamp duty charges appearing on your statement during 2005. By the end of 2006 all account holders can expect to be billed for stamp duty on or around 31 December of that year.

Switching Accounts

Budget 2005

Budget 2005 created an exemption from a second or subsequent charge to stamp duty when switching accounts within an institution, or from one institution to another within any one year. These exemptions take effect from 1 January 2006 when switching ATM, debit and combined cards (ATM & debit).


Details of Switching Arrangements
http://www.revenue.ie/leaflets/financial.htm

Omnipresence

Cheers for that... new I was told to wait until January but could not see the proof written anywhere...

Cheers for that...

Bye bye BofI credit card

-Alan

boo4842

The whole stamp duty on credit cards is a joke, and the government wonders why Ireland has the lowest credit card usage in the western world.

Is it possible to just get a UK card and use an Irish billing address?

BuffyBot

Is it possible to just get a UK card and use an Irish billing address?

Not really, no.

FX Meister

Yes, actually it is. I have a credit card on a UK bank account and my bill somes to me here in Ireland. You need to set the account up in the UK though and need proof of address there.

BuffyBot

You need to set the account up in the UK though and need proof of address there.

Exactly..so not really an option for everyone, is it?

DMC

aloleary wrote:

Cheers for that... new I was told to wait until January but could not see the proof written anywhere...

Cheers for that...

Bye bye BofI credit card

-Alan

Later on that page it says credit card stamp duty is collected on 1st April. ATM/Laser card stamp duty is collected on 1st January.

FX Meister

I think he meant that the rules changed in January, not that you had to change youyr cards in January.

Buffybot
I was just correcting you because you were wrong. It's not an option for a lot of people but it is possible.

browneire

You just need a letter from you existing bank/ credit card saying the duty has been paid and show that to the new card issuer.

D'Peoples Voice

I know someone who applied - in writing- for a "Letter of Closure" from BofI Credit Card services in January 2005, followed up by a phonecall in March, and are still waiting on the letter of closure.
My own from MBNA took a good few days.
To think I always accuse the civil/public service of being slow!
I can only hope that this individual's experience is unique and other BofI customers have not had the same hassle.

scoobynutta22b

So you have to pay a government tax each year to have a credit card? That's really weird!

BuffyBot

Yes, just as you pay an annual tax for ATM cards and Debit cards

Puteq

eh, I know this is going a slight bit off topic since its not exactly what the OP asked, but I moved credit cards a while ago (from MBNA to Tesco) and Tesco ate the 40 EUR fee for moving to them for the first year - thus I only paid one fee for that year ... might be worth asking your new credit card supplier if they do such a thing?

The reason I changed anyway was that MBNA (who never gave me any trouble in fairness) just weren't giving me anything back, at least with the Tesco card I get way more that 40 notes a year back in the form of tesco club points which translate into money for me so at least that off-sets the government fee, and then some.

scoobynutta22b

BuffyBot wrote:

Yes, just as you pay an annual tax for ATM cards and Debit cards

I don't have any Irish cards at the moment. I don't pay any tax on the UK cards I have, seems a bit weird that's all.

BuffyBot

The UK don't have an equivelent tax