Ad valorem stamp duty (AVD)

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In the 2026-27 Budget, the Financial Secretary proposed to increase the AVD rate for instruments of residential property with value above $100 million from 4.25% to 6.5% with effect from 26 February 2026. Subject to the enactment of the amendment ordinance, the new rates in Part 1 of Scale 1 and Scale 2 apply to any instrument of residential property executed on or after 26 February 2026. A new Scale 3 which provides for the same rates as those under the existing Scale 2 applies to instruments of non-residential property. There is no adjustment in the rates.

What are the AVD rates (including marginal relief) before 26 February 2026?


Part 1 of Scale 1: Applicable to instruments of residential property executed between 5 November 2016 and 24 October 2023: A flat rate of 15%; Applicable to instruments of residential property executed between 25 October 2023 and 27 February 2024: A flat rate of 7.5%. Applicable to instruments of residential property executed on or after 28 February 2024: Rates same as those of Scale 2. AVD is computed at the applicable rate on the consideration or value of the property (whichever is the higher)
Part 2 of Scale 1 (Applicable to instruments of residential property executed on or after 23 February 2013 but before 5 November 2016; and instruments of non-residential property executed on or after 23 February 2013 but before 26 November 2020)
Consideration or value of the property (whichever is the higher)	Rates at Scale 1 (Part 2)
Up to $2,000,000	1.50%
$2,000,001 to $2,176,470	$30,000+20% of the excess over $2,000,000
$2,176,471 to $3,000,000	3.00%
$3,000,001 to $3,290,330	$90,000+20% of the excess over $3,000,000
$3,290,331 to $4,000,000	4.50%
$4,000,001 to $4,428,580	$180,000+20% of the excess over $4,000,000
$4,428,581 to $6,000,000	6.00%
$6,000,001 to $6,720,000	$360,000+20% of the excess over $6,000,000
$6,720,001 to $20,000,000	7.50%
$20,000,001 to $21,739,130	$1,500,000+20% of the excess over $20,000,000
$21,739,131 and above	8.50%

Scale 2 rates:


Applicable to (a) instruments of residential property executed on or after 23 February 2013 but before 11 am on 22 February 2023 and (b) instruments of non-residential property executed on or after 26 November 2020 but before 11 am on 22 February 2023
Consideration or value of the property (whichever is the higher)	Rates at Scale 2
Up to $2,000,000	$100
$2,000,001 to $2,351,760	$100+10% of the excess over $2,000,000
$2,351,761 to $3,000,000	1.50%
$3,000,001 to $3,290,320	$45,000+10% of the excess over $3,000,000
$3,290,321 to $4,000,000	2.25%
$4,000,001 to $4,428,570	$90,000+10% of the excess over $4,000,000
$4,428,571 to $6,000,000	3.00%
$6,000,001 to $6,720,000	$180,000+10% of the excess over $6,000,000
$6,720,001 to $20,000,000	3.75%
$20,000,001 to $21,739,120	$750,000+10% of the excess over $20,000,000
$21,739,121 and above	4.25%


Applicable to instruments of residential property and non-residential property executed at or after 11 am on 22 February 2023 but before 26 February 2025
Consideration or value of the property (whichever is the higher)	Rates at Scale 2
Up to $3,000,000	$100
$3,000,001 to $3,528,240	$100+10% of the excess over $3,000,000
$3,528,241 to $4,500,000	1.50%
$4,500,001 to $4,935,480	$67,500+10% of the excess over $4,500,000
$4,935,481 to $6,000,000	2.25%
$6,000,001 to $6,642,860	$135,000+10% of the excess over $6,000,000
$6,642,861 to $9,000,000	3.00%
$9,000,001 to $10,080,000	$270,000+10% of the excess over $9,000,000
$10,080,001 to $20,000,000	3.75%
$20,000,001 to $21,739,120	$750,000+10% of the excess over $20,000,000
$21,739,121 and above	4.25%


Applicable to instruments of residential property and non-residential property executed on or after 26 February 2025
Consideration or value of the property (whichever is the higher)	Rates at Scale 2
Up to $4,000,000	$100
$4,000,001 to $4,323,780	$100+20% of the excess over $4,000,000
$4,323,781 to $4,500,000	1.50%
$4,500,001 to $4,935,480	$67,500+10% of the excess over $4,500,000
$4,935,481 to $6,000,000	2.25%
$6,000,001 to $6,642,860	$135,000+10% of the excess over $6,000,000
$6,642,861 to $9,000,000	3.00%
$9,000,001 to $10,080,000	$270,000+10% of the excess over $9,000,000
$10,080,001 to $20,000,000	3.75%
$20,000,001 to $21,739,120	$750,000+10% of the excess over $20,000,000
$21,739,121 and above	4.25%

If the proposed AVD rates in FAQ2 are passed by the Legislative Council, the above Part 1 of Scale 1 and Scale 2 rates will not apply to instruments of immovable property executed on or after 26 February 2026. For details, please refer to FAQ2.

What are the proposed AVD rates on or after 26 February 2026 as announced in the 2026-27 Budget?

Proposed Part 1 of Scale 1 and Scale 2 rates


Applicable to instruments of residential property executed on or after 26 February 2026
Consideration or value of the property (whichever is the higher)	Rates at Part 1 of Scale 1 and Scale 2
Up to $4,000,000	$100
$4,000,001 to $4,323,780	$100+20% of the excess over $4,000,000
$4,323,781 to $4,500,000	1.50%
$4,500,001 to $4,935,480	$67,500+10% of the excess over $4,500,000
$4,935,481 to $6,000,000	2.25%
$6,000,001 to $6,642,860	$135,000+10% of the excess over $6,000,000
$6,642,861 to $9,000,000	3.00%
$9,000,001 to $10,080,000	$270,000+10% of the excess over $9,000,000
$10,080,001 to $20,000,000	3.75%
$20,000,001 to $21,739,120	$750,000+10% of the excess over $20,000,000
$21,739,121 to $100,000,000	4.25%
$100,000,001 to $109,574,470	$4,250,000+30% of the excess over $100,000,000
$109,574,471 and above	6.5%

Proposed Scale 3 rates:


Applicable to instruments of non-residential property executed on or after 26 February 2026:
Consideration or value of the property (whichever is the higher)	Rates at Scale 3
Up to $4,000,000	$100
$4,000,001 to $4,323,780	$100+20% of the excess over $4,000,000
$4,323,781 to $4,500,000	1.50%
$4,500,001 to $4,935,480	$67,500+10% of the excess over $4,500,000
$4,935,481 to $6,000,000	2.25%
$6,000,001 to $6,642,860	$135,000+10% of the excess over $6,000,000
$6,642,861 to $9,000,000	3.00%
$9,000,001 to $10,080,000	$270,000+10% of the excess over $9,000,000
$10,080,001 to $20,000,000	3.75%
$20,000,001 to $21,739,120	$750,000+10% of the excess over $20,000,000
$21,739,121 and above	4.25%

The above proposed AVD rates will apply to the instruments for acquiring residential and non-residential properties only after they are passed by the Legislative Council and the relevant amendment ordinance comes into effect. For instruments of residential properties, the Inland Revenue Department will continue to charge stamp duty at the prevailing AVD rate of 4.25%. Once the bill is passed by the Legislative Council and comes into effect upon gazettal, the purchaser or vendor concerned has to pay the difference of the stamp duty within 30 days.

Under what circumstances will AVD be payable at Part 1 of Scale 1?

Unless specifically exempted or otherwise provided, AVD is payable at the rate under Part 1 of Scale 1 on an agreement for sale for the acquisition of any residential property executed on or after 5 November 2016. Part 1 of Scale 1 also applies to a conveyance on sale of such a property executed on or after that date (unless the related agreement for sale was executed before 5 November 2016).

However, Part 1 of Scale 1 does not apply to an agreement/conveyance for a residential property where the purchaser/transferee is a Hong Kong permanent resident (HKPR) (or he is a tenant or an authorized occupant of the Housing Authority who acquires the residential property under the Tenants Purchase Scheme) acting on his own behalf and he does not own any other residential property in Hong Kong at the time of acquisition of the subject property irrespective of whether the purchaser/transferee is acquiring a residential property for the first time; only the lower rates (Scale 2) will apply to such agreement/conveyance. See also Question 19 below.

However, instruments executed on or after 12 April 2017 for the sale and purchase or transfer of more than a single residential property, unless specifically exempted or otherwise provided in the law, will be subject to AVD at Part 1 of Scale 1. Thus, a HKPR who acquires more than a single residential property under an instrument will be liable to pay AVD at Part 1 of Scale 1, irrespective of whether or not he/she is a beneficial owner of any other residential property in Hong Kong on the date of acquisition of the subject properties.

For the meaning of "single residential property", see Questions 12 to 16.

Under what circumstances will AVD be payable at Part 2 of Scale 1 rates?

Unless specifically exempted or otherwise provided, AVD is payable at Part 2 of Scale 1 rates on an agreement for sale for the acquisition of any residential property, if the agreement is executed on or after 23 February 2013 but before 5 November 2016. Furthermore, AVD is also payable at Part 2 of Scale 1 rates on an agreement for sale for the acquisition of any non-residential property, if the agreement is executed on or after 23 February 2013 but before 26 November 2020.

Will Part 1 of Scale 1 apply if a HKPR purchases a non-residential property on or after 5 November 2016?

Unless specifically exempted or otherwise provided (see Question 19 below), only Part 2 of Scale 1 will apply to the acquisition of all non-residential properties from 5 November 2016 to 25 November 2020.

Who will be liable to pay AVD?

The buyer, the seller, and any person who uses the instrument will be jointly and severally liable to pay AVD, be it calculated at Scale 1 or Scale 2 rates. In other words, the buyer, the seller and any person who uses the instrument will have the same extent of liability, under the law, to pay for any AVD payable on the chargeable instruments, irrespective of any agreement to the contrary made between them.

However, any person who merely uses an instrument of immovable property (other than the parties executing the instrument) to deduce the title of the property will not be regarded as the liable person.

Under what circumstance is the buyer the only liable person to pay the AVD?

In general, all parties to the chargeable agreement for sale or conveyance on sale and the person who uses the instrument shall be jointly and severally liable, as the case may be, to the payment of AVD. However, if AVD had been charged at Scale 2 on an instrument based on the buyer’s declaration that he/she is a HKPR and is not a beneficial owner of any other residential property in Hong Kong on the date of acquisition of the subject property and it was subsequently found that the declaration of the buyer is not correct, only the buyer is liable for the specified amount, that is, the difference of the AVD computed at Scale 1, Part 1 or Part 2 as appropriate, and Scale 2.

What does “own” in relation to a residential property mean?

For the purposes of the AVD, a person “owns” a residential property if he is the beneficial owner of such property, or any share or interest thereof. Therefore, a person “owns” a residential property even if his residential property is held in the name of a trustee. A person “owns” a residential property if he jointly owns the property with another person/other persons, or is a co-owner thereof. A person is also a beneficial owner of a residential property if he has signed a chargeable agreement for sale for the purchase of that property.

How can a purchaser demonstrate that he does not own any other residential property?

When presenting an agreement for sale/conveyance on sale in respect of a residential property transaction to the Stamp Office for stamping, for which a claim is made to pay AVD at Scale 2 on the ground that he does not own any other residential property in Hong Kong, the purchaser will be required to furnish a statutory declaration (IRSD131). The Stamp Office will verify the correctness of the information deposed to from its available information, including a check with the Land Registry records.

10.

Will Part 1 of Scale 1 apply where the parties entered into a Provisional Agreement for Sale and Purchase (PASP) in respect of a residential property before 5 November 2016 and signed an Agreement for Sale and Purchase (ASP) on or after that date?

For stamp duty purposes, a PASP is a chargeable agreement for sale. The parties who entered into a PASP for acquisition of a residential property before 5 November 2016 is regarded as having “acquired” the property before that date. Hence, Part 1 of Scale 1 will NOT apply to the acquisition of the property.

11.

How to determine whether a person is a HKPR under the Stamp Duty Ordinance (Cap.117) (SDO) or not?

Same as that for Buyer’s Stamp Duty, for the purposes of AVD, HKPR means a person who holds a valid permanent identity card (“PIC”). HKPRs also include the aged, the blind or the infirm who are not required to register or apply for an identity card under regulation 25(e) of the Registration of Persons Regulations (Cap. 177A) and are entitled to be issued with a PIC if they make an application for a PIC.

A person who only holds a Notice of Application Result for Verification of Eligibility for PIC issued by the Immigration Department cannot be regarded as a HKPR for the purposes of AVD.

12.

What is the meaning of “single residential property”?

The Stamp Duty Ordinance has not exhaustively defined the term "single residential property. However, it provides that a "single residential property" includes:

a unit and a roof situated in the same building;
a unit and an adjacent flat roof situated in the same building;
a unit and an adjacent garden;
two residential units that became a single unit as shown by the following documents that the walls or the floor, or any part of the walls or the floor separating the two units has been demolished and the two units have become one single residential unit -
1. a building plan and a letter issued by the Building Authority acknowledging receipt of a certificate of completion of the building works relating to the demolition as required under the Building (Administration) Regulations; or
2. a plan signed by an authorized person after the completion of the building works relating to the demolition.

13.

What documents will the Stamp Office base on to determine whether the subject property is a single residential property?

In general, the Stamp Office will refer to the building plans approved by the Building Authority, the deed of mutual covenant, the occupation permit and other documents, such as the developer’s sale brochures, to determine whether the subject property under an instrument is a single residential property.

14.

If after acquiring two adjacent uncompleted units from the developer, the purchaser requests the developer not to construct the partition wall. Will the two units be regarded as one single residential property?

If at the time when the two units are acquired, the building plan shows that they are separate units, the properties will be regarded as two residential properties although no partition wall will be built subsequent to the acquisition. In such circumstance, the AVD rate at Part 1 of Scale 1 will apply.

15.

Will a rooftop together with a residential unit be treated as one single residential property?

A unit with a roof situated in the same building will be regarded as one single residential property.

16.

Will an instrument for the acquisition of more than 1 residential property be partly chargeable with AVD at scale 2 rates and partly at Part 1 of Scale 1 if the purchaser/transferee is a Hong Kong permanent resident acting on his/her own behalf and not a beneficial owner of any other residential property in Hong Kong?

No, the whole instrument will be chargeable with AVD at Part 1 of Scale 1.

17.

Where a company whose shareholders and directors are all HKPRs acquires a residential property on or after 5 November 2016, will Part 1 of Scale 1 apply?

If a limited company, regardless of the residency status of its shareholders and directors, acquires a residential property on or after 5 November 2016, Part 1 of Scale 1 will apply unless the transaction is specifically exempted.

18.

Where a HKPR acquires a residential property as a trustee for another HKPR who does not own any other residential property in Hong Kong, should the ASP in question be subject to AVD at Part 1 of Scale 1 or Scale 2?

Since Scale 2 only applies to the acquisition of a residential property by a HKPR who does not own any other residential property in Hong Kong at the time of acquisition and he acts on his own behalf in the transaction, an agreement for sale signed by any person in the capacity of a trustee on behalf of another HKPR is chargeable with AVD at Part 1 of Scale 1. The only exception is where that other HKPR is a minor or a mentally incapacitated person.

19.

Under what circumstances will AVD be not chargeable at Part 1 or Part 2 of Scale 1?

(I) AVD rates on the sale and purchase or transfer of non-residential property will be reverted from the rates under Part 2 of Scale 1 to the rates under Scale 2 with effect from 26 November 2020. Based on the proposal in the 2026-27 Budget, the sale and purchase or transfer of non-residential property will be subject to the rates under Scale 3 with effect from 26 February 2026.

(II) Part 1 or Part 2 of Scale 1 will not be applicable under the following circumstances with effect from 23 February 2013 –

(A) When Scale 2 is applicable:

(i)	acquisition of a residential property (whether or not together with a car parking space) by a HKPR who is acting on his/her own behalf and does not own any other residential property (and car parking space, if applicable) in Hong Kong at the time of acquisition. However, if the instrument is executed on or after 12 April 2017 for acquisition of more than 1 residential property, it will be subject to AVD at Part 1 of Scale 1;
(ii)	acquisition of a residential property (whether or not together with a car parking space) by two or more HKPRs jointly as co-owners or joint owners and each of the purchasers is acting on his/her own behalf and does not own any other residential property (and car parking space, if applicable) in Hong Kong at the time of acquisition. However, if the instrument is executed on or after 12 April 2017 for acquisition of more than 1 residential property, it will be subject to AVD at Part 1 of Scale 1;
(iii)	acquisition of a residential property by a HKPR jointly as a co-owner or joint owner with a close relative or close relatives (i.e. spouse, parents, children, brothers and sisters) who is/are not HKPR and each of the purchasers is acting on his/her own behalf and does not own any other residential property in Hong Kong at the time of acquisition. However, if the instrument is executed on or after 12 April 2017 for acquisition of more than 1 residential property, it will be subject to AVD at Part 1 of Scale 1;
(iv)	acquisition or transfer of residential properties between close relatives, irrespective of whether they are HKPRs and whether they are beneficial owners of any other residential property in Hong Kong at the time of the acquisition or transfer;
(v)	nomination of a close relative(s) (be they HKPRs or not) who is/are owner(s) of other residential property in Hong Kong at the time of nomination, to take up the assignment of a residential property;
(vi)	acquisition or transfer of a property by a court order or pursuant to a court order, which includes a foreclosure order obtained by a mortgagee whether or not it falls under the definition of a financial institution within the meaning of section 2 of the Inland Revenue Ordinance (Cap. 112). With effect from 26 November 2020, such exception is only relevant to a transaction of residential property as that of non-residential property is in any event subject to AVD at Scale 2 rates or the proposed Scale 3 rates (subject to the enactment of the relevant legislation);
(vii)	transfer/vesting of a mortgaged property under a conveyance to/in its mortgagee that is a financial institution within the meaning of section 2 of the Inland Revenue Ordinance (Cap.112), or a receiver appointed by the mortgagee. With effect from 26 November 2020, such exception is only relevant to a transaction of residential property as that of non-residential property is in any event subject to AVD at Scale 2 rates or the proposed Scale 3 rates (subject to the enactment of the relevant legislation);
(viii)	acquisition of a property by a person acting on his/her own behalf to replace another property which was owned by that person and that has been purchased or acquired pursuant to redevelopment projects pursued by the Urban Renewal Authority; or resumed under an order made under section 3 of the Lands Resumption Ordinance (Cap. 124) or purchased under section 4A of that Ordinance; or sold pursuant to an order for sale made by the Lands Tribunal under section 4(1)(b)(i) of the Land (Compulsory Sale for Redevelopment) Ordinance (Cap.545); or resumed under an order made under section 4(1) of the Mass Transit Railway (Land Resumption and Related Provisions) Ordinance (Cap. 276); or resumed under an order made under section 13(1) of the Roads (Works, Use and Compensation) Ordinance (Cap. 370); or resumed under an order made under section 16 or 28(1) of the Railways Ordinance (Cap. 519); or acquired under an acquisition order made under section 3(1) or (2) of the Land Acquisition (Possessory Title) Ordinance (Cap. 130); or resumed under an order made under section 37(2) of the Land Drainage Ordinance (Cap. 446). With effect from 26 November 2020, such exception is only relevant to a transaction of residential property as that of non-residential property is in any event subject to AVD at Scale 2 rates or the proposed Scale 3 rates (subject to the enactment of the relevant legislation).

(B) When AVD is exempt:

(ix)	nomination of a close relative(s) (be they HKPRs or not) who do(es) not own any other residential property in Hong Kong at the time of nomination;
(x)	transfer of a property to a beneficiary of the estate of a deceased person in accordance with that provided under a will or the law of intestacy; or acquired the property by the right of survivorship;
(xi)	acquisition or transfer of a property by or to a body corporate from an associated body corporate;
(xii)	acquisition or transfer of properties by or to the Government;
(xiii)	gift of properties received by charitable institutions exempted from tax under section 88 of the Inland Revenue Ordinance (Cap. 112).

(xiv)

acquisition of a residential or non-residential property (including bare sites) for the purpose of redevelopment (see Question 34 below). With effect from 26 November 2020, such exception is only relevant to a transaction of residential property as that of non-residential property is in any event subject to AVD at Scale 2 rates or the proposed Scale 3 rates (subject to the enactment of the relevant legislation);

(xv)

HKPR who changes his/her only residential property.

20.

A HKPR purchased a residential property on 1 November 2016. He owned another residential property in Hong Kong at the time of acquisition. Is AVD chargeable at Part 1 of Scale 1?

Part 1 of Scale 1 is not applicable as it will only affect acquisitions made on or after 5 November 2016. The stamp duty will be payable at the prevailing rates under Scale 1 that was in force at the time of acquisition of the residential property (equivalent to the rates under the current Part 2 of Scale 1).

21.

If a residential property is acquired jointly by a HKPR and his spouse who is not a HKPR and both of them do not own any other residential property in Hong Kong at the time of acquisition of the subject property, will Part 1 of Scale 1 apply?

Provided that each of them is acting on his/her own behalf in acquiring the property, Part 1 of Scale 1 is not applicable. The stamp duty will be payable at Scale 2.

22.

A HKPR purchased a residential property jointly with his spouse. At the time of acquisition, the HKPR did not own any other residential property in Hong Kong and his spouse already owned a residential property in Hong Kong. Would Part 1 of Scale 1 apply to only half of the purchase price?

If a residential property is jointly acquired by more than one person and any of the purchasers already owned a residential property in Hong Kong at the time of acquisition, AVD at Part 1 of Scale 1 will be payable on the entire stated consideration or full value of the property, whichever is the higher, regardless of the respective share of interest of the purchasers in the property acquired. The fact that the joint owner is a close relative does not make any difference in this respect.

23.

On 1 December 2016, a HKPR entered into a PASP to purchase a residential property. At that time, he did not own any other residential property in Hong Kong. In the ASP executed on 31 December 2016, his spouse was added as one of the purchasers. At that time, his spouse already owned a residential property in Hong Kong. Will Part 1 of Scale 1 apply?

In the above situation, the PASP will be chargeable with AVD at Scale 2 as usual (alternatively, such duty may be chargeable on the ASP instead under certain circumstances). Upon adding the spouse as one of the joint owners, the ASP will be charged with another AVD also at Scale 2, which is computed by reference to the stated consideration or the value of the property, whichever is the higher, less half of the stamp duty representing the share of the interest of the HKPR in the property.

24.

Would the answer in Q23 be different if the spouse did not own any residential property in Hong Kong when he/she was added as one of the joint owners in the ASP?

In the above situation, the ASP with adding of the spouse as one of the joint owners will be exempt from AVD.

25.

Mr A already owned a residential property in Hong Kong. On 1 December 2016, he inherited another residential property in Hong Kong. Will Part 1 of Scale 1 apply?

Part 1 of Scale 1 is not applicable. A property (residential or non-residential) which is inherited from a deceased person’s estate under a will, the law of intestacy or the right of survivorship by a beneficiary is not chargeable with stamp duty.

26.

Mr B inherited a residential Property X in Hong Kong from the estate of a deceased. He is now prepared to purchase another residential Property Y. Will Part 1 of Scale 1 apply?

Part 1 of Scale 1 will apply to the agreement for sale/conveyance on sale in respect of Property Y since at the time of its acquisition, Mr B already owned another residential property in Hong Kong, i.e. Property X. How Mr B became owner of Property X is not relevant.

27.

A HKPR, who is acting on his own behalf, entered into an agreement for sale to acquire a residential property (the first Property) in Hong Kong on 1 December 2016. Before the property was assigned to him, he signed another agreement for sale to acquire another residential property (the second Property). He does not own any other residential property. Will Part 1 of Scale 1 apply?

Scale 2 applies to the agreement for sale in respect of the first Property since at the time of acquisition, the HKPR did not own any other residential property. However, Part 1 of Scale 1 applies to the agreement for sale in respect of the second Property since the HKPR is the beneficial owner of the first Property at the time of acquisition of his second property. A person becomes the beneficial owner of a residential property upon signing a chargeable agreement for sale for the acquisition of that property.

28.

If the HKPR in question (27) purchased the first property that was under construction, and after signing another agreement for sale to acquire the second property, he cancelled the agreement for sale of the first property. Can he apply for a partial refund of AVD paid on the second property?

No. To be eligible for the refund of AVD, one of the conditions is that the applicant has disposed of the previously owned property by an agreement for sale or a conveyance on sale within the specified period. Since the cancellation agreement is neither an agreement for sale nor a conveyance on sale, he is not eligible to apply for refund of AVD.

29.

Mr C, a HKPR, signed a PASP to purchase a residential property on 1 December 2016. Ms D (Ms D is not a HKPR and not a close relative of Mr C) was added to the ASP as one of the purchasers which was signed on 23 December 2016. Will the ASP be subject to AVD at Part 1 of Scale 1?

In the above scenario, Ms D has acquired part of the property from Mr C on or after 5 November 2016 when she signs the ASP. As Ms D is not a close relative of Mr C, Part 1 of Scale 1 will be applicable to the ASP in respect of the property transferred. Thus, the ASP will have to be stamped with AVD at Part 1 of Scale 1 (i.e. 15%) which is computed by reference to the stated consideration or the value of the property, whichever is the higher, less half of the stamp duty representing the share of the interest of Mr C in the property, in addition to any other stamp duty (such as Buyer’s Stamp Duty and Special Stamp Duty) to which the ASP may be chargeable.

30.

Mr E is a HKPR. On 23 December 2016, he signed a PASP to purchase a residential property. At that time he only owned a non-residential property in Hong Kong. Will the PASP be charged with AVD at Part 1 of Scale 1?

Since Mr E did not own any other residential property in Hong Kong at the time of acquisition of the subject residential property and he is acting on his own behalf in acquiring the property, Part 1 of Scale 1 will not be applicable. Whether or not Mr E owns any non-residential property at the material time is not relevant.

31.

Mr F is a HKPR. On 23 December 2016, he signed a PASP to purchase a residential property in Hong Kong. At that time he only owned a residential property in Macau and did not own any other property in Hong Kong. Will the PASP be charged with AVD at Part 1 of Scale 1?

For the purposes of AVD, residential property located outside Hong Kong will not be relevant. If Mr F does not own any other residential property in Hong Kong and he is acting on his own behalf in acquiring the subject property, Part 1 of Scale 1 will not be applicable. AVD will be charged at Scale 2.

32.

Will any relief be given to change of residential property cases?

A HKPR who is acting on his own behalf acquiring a residential Property B to replace his only other residential property A can apply for partial refund of AVD. He will be subject to AVD at Scale 1 as usual in the first instance, but he may seek a refund of the stamp duty paid in excess of that computed under Scale 2 upon proof that Property A has been disposed of within six months (if Property B was acquired before 5 November 2016) or 12 months (if Property B was acquired on or after 5 November 2016) from the date Property B was assigned to him. There is a general time limit for claiming refunds, which is within 2 years after the date of the chargeable instrument for acquisition of Property B (in this case, the agreement for purchase of Property B) or not later than 2 months after the date of the assignment for the disposal of Property A, whichever is the later. To support the claim of refund, the applicant should submit IRSD125A with the relevant documents specified in the Annex of the form within the aforesaid application timeframe.

33.

Will Part 1 of Scale 1 apply where a HKPR acquires a new residential property after disposing of all of his existing residential properties?

For stamp duty purposes, a person who entered into an ASP for disposal of a property is regarded as having disposed of the property. Therefore, if a HKPR who is acting on his own behalf has disposed of all of his existing residential properties before acquiring a new one, Scale 2 will apply to the acquisition. However, if the HKPR fails to complete any of the disposal transactions (i.e. where the agreement for sale is cancelled, annulled or rescinded or is otherwise not performed), the difference of AVD payable at Part 1 of Scale 1 and Scale 2 on the newly acquired property will be recouped from him.

34.

Will any relief be given to a person who is acquiring property for redevelopment?

The same relief as for acquisitions of residential properties for redevelopment under the Buyer’s Stamp Duty regime will apply equally to acquisitions of residential and non-residential properties for development under the AVD regime. The AVD paid in excess of that payable under Scale 2 would be refunded. The applicant may submit IRSD125B (for individual person) or IRSD125C (for body corporate) with the relevant supporting evidence specified in the Annex of the forms to claim for the refund. With effect from 26 November 2020, such exception is only relevant to a transaction of residential property as that of non-residential property is in any event subject to AVD at Scale 2 rates or the proposed Scale 3 rates (subject to the enactment of the relevant legislation).

35.

When should AVD at Part 1 of Scale 1 be paid?

A chargeable agreement for sale/conveyance on sale is to be stamped with AVD at Part 1 of Scale 1 within 30 days after the date on which the agreement for sale/conveyance on sale is executed. The arrangements for stamping and claiming for charging AVD at Scale 2 regarding the instruments of immovable properties are set out in the Stamping Circulars No. 05/2014, 06/2014, 07/2014, 02/2018, 03/2018, 04/2018 and 05/2018.

36.

What are the transitional stamping arrangements for residential properties transactions involving more than a single residential property under a single instrument?

Before the date of gazettal of the Stamp Duty (Amendment) (No. 2) Ordinance 2018 (“the 2018 (No. 2) Amendment Ordinance”), for instruments executed on or after 12 April 2017 but before 20 April 2018 for acquisition of more than a single residential property under one single instrument, if the purchaser is a HKPR acting on his/her own behalf and not a beneficial owner of any other residential property in Hong Kong at the time of acquisition, the instrument will be stamped with AVD at Scale 2 rates first. The additional AVD, representing the difference between AVD payable at Part 1 of Scale 1 (i.e. 15%) and the AVD paid, will have to be paid within 30 days commencing immediately after the date of gazettal of the 2018 (No. 2) Amendment Ordinance (i.e. on or before 20 May 2018). As 20 May 2018 is Sunday, the due date for payment will be extended to 21 May 2018. Detailed arrangements for stamping the additional AVD upon the enactment of the 2018 (No. 2) Amendment Ordinance are set out in Stamping Circular No. 05/2018.

37.

Will the AVD paid be refunded if the parties cancel the agreement for sale after the AVD has been paid?

In line with the existing regime, in case the agreement for sale is cancelled, revoked or rescinded or is otherwise not performed (other than for the purpose of a further resale such as confirmor sale or nomination of another buyer), the party who paid the AVD can apply for refund of the duty paid within 2 years after the agreement is cancelled, etc.

38.

A HKPR, who does not own any other residential property in Hong Kong, executes several ASPs to buy several residential properties on the same day. Which ASP will be chargeable at Scale 2 and which ones will be chargeable at Part 1 of Scale 1?

If the HKPR is acting on his own behalf, the ASP which was executed first at a point in time on that day will be charged at Scale 2, whereas all the other ASPs will be charged at the rate under Part 1 of Scale 1. The HKPR would have to declare, with respect to the ASP executed by him, for which AVD is claimed to be payable at Scale 2, that he did not own any other residential property at that particular point in time. However, if the HKPR acquires more than 1 residential property under the first ASP which was executed on or after 12 April 2017, the first ASP is also chargeable with AVD at Part 1 of Scale 1 rate.

39.

A HKPR, who does not own any other residential property in Hong Kong, executes one ASP to acquire several residential property units in one single transaction. Which property unit will be chargeable with AVD at Scale 2 and which ones will be chargeable with the AVD at Scale 1?

If the ASP was executed before 12 April 2017 and the HKPR is acting on his own behalf, all the property units comprised in that instrument will be charged with AVD at Scale 2 rates. However, if the ASP is executed on or after 12 April 2017, unless specifically exempted or otherwise provided in the law, the ASP will be chargeable with AVD at Part 1 of Scale 1, even if the purchaser or transferee is a HKPR who is acting on his own behalf and does not own any other residential property in Hong Kong at the time of acquisition of the properties concerned.

40.

If property prices have plummeted, will the buyers be able to base on the lowered market price to pay the AVD, or seek a refund of the AVD already paid?

No. Stamp duty is chargeable on an instrument by reference to the consideration stated in the instrument or the market value of the property as at the date of execution of the instrument. The stamp duty payable will not be affected by any subsequent changes in the market value of the property, whether upwards or downwards.

41.

A HKPR does not own any residential property and car parking space in Hong Kong. He enters into an ASP to acquire a car parking space and a residential property. How is AVD chargeable?

If the HKPR is acting on his own behalf in acquiring the properties, AVD charged at Scale 2 will apply.

42.

A HKPR does not own any residential property and car parking space in Hong Kong. He enters into two separate ASPs to acquire a car parking space and a residential property. How is AVD chargeable?

Between 23 Feburary 2013 and 25 Novemeber 2020, AVD charged at Scale 2 is payable on the ASP for acquisition of the residential property if the HKPR is acting on his own behalf in acquiring the property. AVD at Part 2 of Scale 1 is payable for the ASP for acquisition of the car parking space. With effect from 26 November 2020, AVD charged at Scale 2 is payable on the ASP for acquisition of the car parking space.

43.

A HKPR owned two residential properties when he acquired a new residential property. Within 6 months from the date of assignment of the new residential property, he disposed of both of the residential properties previously owned. Will he be entitled to the partial refund of AVD?

No. The partial refund of AVD is catered for those who changed their only residential property by another residential property.

44.

A HKPR and his wife each owned a residential property when they jointly acquired a new residential property on 1 November 2016. Within 6 months after the date of assignment of the new residential property, they disposed of their respective residential properties. Will they be entitled to the partial refund of AVD?

Since the purchasers own more than one residential property at the time of acquisition of the new residential property, they are not entitled to partial refund of AVD.

45.

A HKPR owned one residential property when he signed an ASP to acquire two new residential properties on 5 November 2016. Within 12 months after the date of assignment of the new residential properties, he disposed of his only original residential property. Will he be entitled to the partial refund of AVD?

No. The partial refund of AVD only applies if the HKPR acquires one residential property to replace his only original residential property.