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  • FIRST POST
    • aj9648
    • By aj9648 29th Jan 13, 8:32 PM
    • 909Posts
    • 78Thanks
    aj9648
    Paying Stamp Duty with Credit Card
    • #1
    • 29th Jan 13, 8:32 PM
    Paying Stamp Duty with Credit Card 29th Jan 13 at 8:32 PM
    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?
Page 1
    • googler
    • By googler 29th Jan 13, 8:39 PM
    • 13,824 Posts
    • 8,901 Thanks
    googler
    • #2
    • 29th Jan 13, 8:39 PM
    • #2
    • 29th Jan 13, 8:39 PM
    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....
    • Contessa
    • By Contessa 29th Jan 13, 9:27 PM
    • 858 Posts
    • 1,279 Thanks
    Contessa
    • #3
    • 29th Jan 13, 9:27 PM
    • #3
    • 29th Jan 13, 9:27 PM
    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?
    • Richard Webster
    • By Richard Webster 30th Jan 13, 9:18 AM
    • 7,250 Posts
    • 6,905 Thanks
    Richard Webster
    • #4
    • 30th Jan 13, 9:18 AM
    • #4
    • 30th Jan 13, 9:18 AM
    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 retired 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 for it.
    • aj9648
    • By aj9648 30th Jan 13, 10:58 AM
    • 909 Posts
    • 78 Thanks
    aj9648
    • #5
    • 30th Jan 13, 10:58 AM
    • #5
    • 30th Jan 13, 10:58 AM
    according to this you can....

    http://www.moneysavingexpert.com/mortgages/stamp-duty#six
    • aj9648
    • By aj9648 30th Jan 13, 11:01 AM
    • 909 Posts
    • 78 Thanks
    aj9648
    • #6
    • 30th Jan 13, 11:01 AM
    • #6
    • 30th Jan 13, 11:01 AM
    and this .... http://www.hmrc.gov.uk/payinghmrc/stamp-land.htm#3
    • ognum
    • By ognum 30th Jan 13, 11:18 AM
    • 4,209 Posts
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    ognum
    • #7
    • 30th Jan 13, 11:18 AM
    • #7
    • 30th Jan 13, 11:18 AM
    Not sure why you are asking the question then?
    • martinsurrey
    • By martinsurrey 30th Jan 13, 11:33 AM
    • 2,144 Posts
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    martinsurrey
    • #8
    • 30th Jan 13, 11:33 AM
    • #8
    • 30th Jan 13, 11:33 AM
    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.
    • thequant
    • By thequant 30th Jan 13, 12:04 PM
    • 1,194 Posts
    • 1,292 Thanks
    thequant
    • #9
    • 30th Jan 13, 12:04 PM
    • #9
    • 30th Jan 13, 12:04 PM
    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.
    Originally posted by martinsurrey
    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.
    • kingstreet
    • By kingstreet 30th Jan 13, 12:31 PM
    • 28,959 Posts
    • 15,359 Thanks
    kingstreet
    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 broker. 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. Please do not send PMs asking for one-on-one-advice, or representation.
  • cramg
    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
  • Juhan
    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
    • lee111s
    • By lee111s 9th Dec 13, 1:38 PM
    • 2,013 Posts
    • 1,385 Thanks
    lee111s
    I really don't think you should be purchasing a house if you can't afford the stamp duty.
    • AFK_Matrix
    • By AFK_Matrix 9th Dec 13, 1:40 PM
    • 633 Posts
    • 773 Thanks
    AFK_Matrix
    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
    Originally posted by Juhan
    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.
    Mortgage Overpayments
    January 2015 - Outstanding Mortgage Balance: £133,016.68
    Mortgage Year End Target: £120,000
    Overpayments made this year: £3700 - Oustanding balance: £128,170.82
    • kingstreet
    • By kingstreet 9th Dec 13, 1:49 PM
    • 28,959 Posts
    • 15,359 Thanks
    kingstreet
    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
    Originally posted by Juhan
    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 broker. 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. Please do not send PMs asking for one-on-one-advice, or representation.
    • loubel
    • By loubel 9th Dec 13, 1:56 PM
    • 447 Posts
    • 303 Thanks
    loubel
    I think you can definitely pay the SDLT by CC directly yourself and save unnecessary solicitor fee approx £75.
    Originally posted by Juhan
    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.

    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.
    • dgtazzman
    • By dgtazzman 9th Dec 13, 2:50 PM
    • 956 Posts
    • 557 Thanks
    dgtazzman
    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...
  • Slightly Squiffy
    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!)
  • lukeedwards85
    I really don't think you should be purchasing a house if you can't afford the stamp duty.
    Originally posted by lee111s
    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.
    • lee111s
    • By lee111s 10th Dec 13, 3:43 PM
    • 2,013 Posts
    • 1,385 Thanks
    lee111s
    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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