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  • Tax

    Paying Stamp Duty with a credit card

    I'm in the process of buying a house for cash and wanted to ask if anybody knows if it's possible to pay the stamp duty (SDLT) directly to HMRC with a credit card and if they do accept credit card payment would they take that payment as the "Cash advance" portion of the cards credit limit? My bank's credit card department is unsure.

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    Have a look at this link:- https://www.gov.uk/guidance/pay-stamp-dut...ays-to-pay

    HMRC do accept Credit Card payments - but it will cost you by way of a fee

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    Will your Solicitor not take a credit card payment  direct  ??

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    Learn Change and Adapt ?????

    Thank you both for your replies and have been making further enquiries with regards to this I'm at the point where every thousand pounds really counts and am trying to free up a bit of cash to use for immediate requirements such as white goods, carpets, maintenance etc

    The best result would be if my solicitors would be allow me to pay the entire bill to include the stamp duty via card.

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    Hi Jake,

    If it's a new build house direct from a developer, I would negotiate the carpets and white goods into the deal.  I have always done this with no problem.  

    It means that when you complete, your property can be rented out quickly rather than waiting to have carpets fitted, and of course, you will be saving a few thousand pounds.

    I have always found white goods and carpets an easy thing to get factored into the deal as it's a minimal cost to the developer as they buy in bulk.

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    Hi Vanessa, that's a good idea, carpets and white goods come to quite a considerable amount, the house I'm currently buying is a semi detached plain old Victorian property so there's nothing that comes with it except a gas cooker that's past it's prime. I like the idea of new properties though.

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    Ask your credit card provider if you can have a balance transfer to your current account. My credit card provides this for a one off 3% fee and then 21 months interest free repayment. It works out cheaper than paying directly with the credit card, unless you can repay within 3 months.

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    Thanks Gary for the suggestion. I'm with Natwest and they do allow cash advances which I think are the same thing as a "balance transfer" but this is allowable only for 50% of my credit limit ie £5,000 and I'm trying to use my credit card balance first as the cash is more important as it's more versatile so for example I'm thinking about buying good quality used white goods and furniture from Gumtree to eek out my by then diminished funds, I'll give them a call and ask about a balance transfer

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    I bought a motorbike recently, advertised for £2000. I could have used my credit card and paid for it at a rate of £100 per month. It would have taken 27 months to clear the debt, i.e. £2700 including interest. Instead, I negotiated a 10% discount for cash with the seller and transferred the funds from my credit card to my bank on an 18 month interest free deal. I repaid it at £100 a month and the total cost was £1854, saving £846.

    You may be able to negotiate some similar deals with white goods, carpets, etc, but still use your credit card to finance it.

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    Sounds like you saved a lot! It's surprising how much can be saved through looking closely at the various financial options

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    Update: It seems from further enquiries which have involved several communications with my solicitor, conversations with my credit card company and three phone calls to the help desk of HMRC one of which was a phone call I received after escalating the question to a senior department only for them to have got the question wrong and therefore they weren't able to provide an answer but I then again phoned back and after I explained to the helpful lady that it's my second enquiry and it's already been escalated combined with a delay of a week she then very kindly put me on hold for a good five minutes and asked her colleagues and manager this question and the consensus is that yes you can make a credit card payment and they will take the payment as a normal credit card purchase so anybody who's also a bit tight when it comes to purchasing a house you definitely can pay HMRC stamp duty with your credit card and it should be taken from your credit card as "credit card payments" as opposed to a "cash advance".

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