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Paying Stamp Duty with Credit Card
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# 1
aj9648
Old 29-01-2013, 8:32 PM
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Default Paying Stamp Duty with Credit Card

Hi

I just wondered if anyone knew if I could pay duty by credit card? I have a 0% card for 20months and could with chucking the £9K on to there for 20 months.

Would the credit card company treat it as a new purchase?
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# 2
googler
Old 29-01-2013, 8:39 PM
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The available payment methods are detailed at HMRC

http://www.hmrc.gov.uk/payinghmrc/stampduty.htm

And paying by CC isn't one of them....
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# 3
Contessa
Old 29-01-2013, 9:27 PM
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Until I read the OP's post I would never have considered a using a CC. But, I believe it's possible to pay one's self-assessment tax using a CC (although a charge is made). I wonder why one is allowed but not the other?
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# 4
Richard Webster
Old 30-01-2013, 9:18 AM
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Whoever gets paid by credit card takes a small percentage hit whihc gioes to the credit card company and therefore doesn't het the full amount. So can't imagine HMRC being happy with that and your solicitor certinaly wouldn't want to lose say 2% of say £9,000 - £180 loss on his conveyancing charges for the convenience of you paying that way.
RICHARD WEBSTER

As a conveyancing solicitor I believe the information given in the post to be useful assuming any properties concerned are in England/Wales but I accept no liability except to fee-paying clients.
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# 5
aj9648
Old 30-01-2013, 10:58 AM
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according to this you can....

http://www.moneysavingexpert.com/mor...stamp-duty#six
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# 6
aj9648
Old 30-01-2013, 11:01 AM
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and this .... http://www.hmrc.gov.uk/payinghmrc/stamp-land.htm#3
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# 7
ognum
Old 30-01-2013, 11:18 AM
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Not sure why you are asking the question then?
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# 8
martinsurrey
Old 30-01-2013, 11:33 AM
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A lot of credit card companies see HMRC payments as cash advances rather than purchases, so although you can physically pay on the card, the amount would not be included on your 0% for PURCHASES, and would probably be charged interest at a stupidly high rate.

check with the card provider.
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# 9
thequant
Old 30-01-2013, 12:04 PM
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Quote:
Originally Posted by martinsurrey View Post
A lot of credit card companies see HMRC payments as cash advances rather than purchases, so although you can physically pay on the card, the amount would not be included on your 0% for PURCHASES, and would probably be charged interest at a stupidly high rate.

check with the card provider.
If it is treated as a cash advance which I suspect it is, doing such a large cash "withdrawal" will almost certainly totally obliterate your credit rating.

I took £200 out on my CC once, and struggled credit wise for a year. Even my own bank refused to lend to me, on enquiring why it was causing so many problem, i was told that the "automated" systems see cash advances on CC's as a "sure" sign of financial distress.

God knows what sort of damage a an advance of this size would do.
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# 10
kingstreet
Old 30-01-2013, 12:31 PM
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If you need a mortgage, you are likely to find the lender insists that the solicitor acting for it obtains cleared funds for the deposit and stamp duty in advance of completion.

That would prevent payment of stamp duty by any other means.
I am a Mortgage Adviser. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
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# 11
cramg
Old 30-01-2013, 1:12 PM
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Why not pay the estate agents fees and solicitors fees on the credit card, freeing up some of the proceeds to cover stamp duty? Just a thought
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# 12
Juhan
Old 09-12-2013, 1:35 PM
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Default paying SDLt by 3 cc

Hi,

I think you can definitely pay the SDLT by CC directly yourself and save unnecessary solicitor fee approx £75.

My question is can I use 3 different cc to pay the bill as I don't have enough credit limit to pay by 1 card.

Regards
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# 13
lee111s
Old 09-12-2013, 1:38 PM
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I really don't think you should be purchasing a house if you can't afford the stamp duty.
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# 14
AFK_Matrix
Old 09-12-2013, 1:40 PM
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Quote:
Originally Posted by Juhan View Post
Hi,

I think you can definitely pay the SDLT by CC directly yourself and save unnecessary solicitor fee approx £75.

My question is can I use 3 different cc to pay the bill as I don't have enough credit limit to pay by 1 card.

Regards
I honestly can't see this happening as each CC will charge the 2% or whatever fee, and if ur using 3 of them then you have even more of a problem.
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# 15
kingstreet
Old 09-12-2013, 1:49 PM
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Quote:
Originally Posted by Juhan View Post
Hi,

I think you can definitely pay the SDLT by CC directly yourself and save unnecessary solicitor fee approx £75.

My question is can I use 3 different cc to pay the bill as I don't have enough credit limit to pay by 1 card.

Regards
The £75 isn't the fee for paying the stamp duty, it's probably the fee for filling in the SDLT return, when charged separately as some firms like to do to make their headline fees look cheaper.

I suggest you find out exactly what you are trying to avoid paying...

... and this won't work if you need a mortgage, as I noted in post #10.
I am a Mortgage Adviser. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
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# 16
loubel
Old 09-12-2013, 1:56 PM
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Quote:
Originally Posted by Juhan View Post
I think you can definitely pay the SDLT by CC directly yourself and save unnecessary solicitor fee approx £75.
If you are a cash buyer then you can sort the SDLT directly with HMRC. Their website says they charge 1.4% for payments by credit card plus you will have to check with your card provider whether they treat it as a purchase or a cash advance. You would only save the solicitor's fee for preparing and submitting the SDLT Return if you do this yourself as well.

If you are buying with a mortgage then you can't do this at all as your solicitor has to deal with both the SDLT Return and paying the SDLT.

Quote:
My question is can I use 3 different cc to pay the bill as I don't have enough credit limit to pay by 1 card.
Probably, but it would certainly suggest that you have overstretched on your purchase price.
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# 17
dgtazzman
Old 09-12-2013, 2:50 PM
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I find it strange a cash advance on a CC that offers that facility would be seen so negatively. Guess I'm in trouble then for taking out a small cash advance abroad as my CC offers far better rates than my bank for taking out foreign money from cash points (which I pay off online asap to avoid the interest charges negating the savings). It's probably more a question of looking at the whole picture, rather than just one single cash advance. £9000 is a whole different ball game though...
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# 18
Slightly Squiffy
Old 09-12-2013, 4:36 PM
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It had crossed my mind to put our stamp duty on the AmEx charge card and then pay off the balance straight away, simply for the air miles

(Of course I know it doesn't work that way, I simply wish it did!)
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# 19
lukeedwards85
Old 10-12-2013, 3:05 PM
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Quote:
Originally Posted by lee111s View Post
I really don't think you should be purchasing a house if you can't afford the stamp duty.
Well done lee111s, an informative and helpful post. Do let us know when you see fit to clamber down from that high horse you are about to fall off.
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# 20
lee111s
Old 10-12-2013, 3:43 PM
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No high horse here, just a matter of fact. If they don't have the cash for the necessaries then I don't think it's wise to be taking on such a large financial responsibility of owning a house. What if they then move in and the boiler goes? Where they going to magic 2-3k from?
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