Another Credit Card Stamp Duty Question

[ShaneMc]

Hi,

I am thinking of switching credit card providers. I know that when i close one account i pay the duty for 2006 and get the letter then give this to my new provider and they will not charge me. What i am wondering is if i switch after april 1st ( when my current provider charges the duty) will i be charged again on say April 10th ? if so have i paid for 2006 and 2007? When will i next have to pay the duty?

Thanks

 

[Marion]

I am thinking of switching credit card providers. I know that when i close one account i pay the duty for 2006 and get the letter then give this to my new provider and they will not charge me. What i am wondering is if i switch after april 1st ( when my current provider charges the duty) will i be charged again on say April 10th ? if so have i paid for 2006 and 2007? When will i next have to pay the duty?

This is my understanding of the situation:

The stamp duty is paid retrospectively.

If you close your account now, you are paying the stamp duty for the period April 02 2005 - 01 April 2006. If you don't close the account now you still pay this stamp duty because it is owed for the period 2005 - 2006.

If you close after April 02, you will have to pay the stamp duty for the year April 02 2006 - 01 Apr 2007. (Normally this would not be paid until 01 April 2007, but you are closing and so it must be paid on closure)

You shouldn't have to pay again until 01 April 2008.

At least, this makes sense to me. But I'm sure I'll be corrected if this is not the case.

Marion