Q.  I have just been charged the annual stamp duty on my credit card. Will I be charged again if I change my credit card during the year?

21.04.08

Stamp duty is payable on credit cards and charge cards on 1 April each year. The duty you have just paid is the duty that applies for the preceding 12 months; the stamp duty for the current year will be charged in April 2009. If you close your account before the end of that period, the stamp duty will be charged to the close date.

If you are changing to a different credit card you do not have to pay the stamp duty for the year again. When you are closing your account you should obtain a letter of closure from your card provider, confirming that you have paid your stamp duty for the year. If you give this letter to your new card issuer, they will not charge you again. You can change your account a number of times during the year without incurring additional stamp duty if you follow this procedure each time.

The amount of the stamp duty on credit cards was changed in the Budget last December, €40 to €30 per year. This means that the stamp duty you have just paid for the preceding 12 months was charged at €30 but, if you had closed your account before the Budget, you would have been charged €40. In that case you would have been entitled to a refund of €10 from the bank or financial institution.

Citizens Information: Buncrana 074 9363496; Carndonagh 074 9373741

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