Closing credit cards and stamp duty

STEINER

Frequent Poster
Messages
1,150
Hi,
I have 3 cc’s and have no real need for two of them at zero balances which total 10k in credit. Number 3 is less than 0.5k of a balance with a decent 4.5k credit limit which I will keep. Numbers 1 and 2 are with the same lender (Tesco visa ceased). Is it best to close these two before 31 March to minimise stamp duty? Will it be just €30 x 2 = €60 in total?
I have read the key post and am still unsure.
 

RedOnion

Frequent Poster
Messages
4,540
Yes, if you close before end of March you'll pay stamp duty for this year. But if you keep and close in May for example, you'll pay it again.
Stamp duty is payable even if you don't use the card.
 

STEINER

Frequent Poster
Messages
1,150
Yes, if you close before end of March you'll pay stamp duty for this year. But if you keep and close in May for example, you'll pay it again.
Stamp duty is payable even if you don't use the card.
Thanks, I will close before end March.
 

STEINER

Frequent Poster
Messages
1,150
I phoned bank today, they are operating a basic card support service based on available staff numbers. My account closure request is noted today and I won’t be charged stamp duty in April too if they can’t close account before April. I used one of the cards to book flights for August this year and am probably going to keep that card in case virus and/or flight rescheduling issues lead to refund complications.
 

dingoxh

Registered User
Messages
30
Yes, if you close before end of March you'll pay stamp duty for this year. But if you keep and close in May for example, you'll pay it again.
Stamp duty is payable even if you don't use the card.
I understand if you keep the CC , then the stamp is due even if you don't use the card but if you never have used the CC, my understanding is that the stamp is not due if you close the account before the stamp is due to be collected....is that how you read it?
 

RedOnion

Frequent Poster
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4,540
my understanding is that the stamp is not due if you close the account before the stamp is due to be collected....is that how you read it?
Yes, if you open & close the credit card, in the same stamp duty year, but never had a transaction on it, then there's no stamp duty.
But if it goes over the date, stamp duty is due even if it was never used. If that makes sense?
 

dingoxh

Registered User
Messages
30
I get you. But what's your take on what a transaction is? Is it a purchase only or is it any activity on the card?

Let's say (in my case) , you have a CC with balance transfer but never actually make a purchase on it. Every month you pay off the minimum balance and the clear the balance with one big lump before interest is due. Do they count as transactions?
 

EmmDee

Frequent Poster
Messages
465
I get you. But what's your take on what a transaction is? Is it a purchase only or is it any activity on the card?

Let's say (in my case) , you have a CC with balance transfer but never actually make a purchase on it. Every month you pay off the minimum balance and the clear the balance with one big lump before interest is due. Do they count as transactions?
Instinctively... It's an active card. So I would expect the charge
 

RedOnion

Frequent Poster
Messages
4,540
But what's your take on what a transaction is? Is it a purchase only or is it any activity on the card?
It's written in legislation (s. 124 of the stamp duty act). It's a long time since I read it (credit cards aren't my area) but from memory it's any transaction line on your statement. But if you're doing balance transfers, you can use the replacement mechanism to exempt the 2nd card from stamp duty.
 
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