Illustrative examples of the application and computation of AVD - Scale 1 and Scale 2

 

 

A:

Since Mr Chan did not own any other residential property in Hong Kong at the time of acquisition of the subject property, lower rates (Scale 2) will apply. The AVD payable is $180,000 ($6M x 3%).

 

 

A:

Since Mr Lee owned another residential property in Hong Kong at the time of acquisition of the second property, the flat rate of 15% under Part 1 of Scale 1 applies. The AVD payable is $900,000 ($6M x 15%).

 

 

A:

In this case, the second property is regarded as having been acquired on the date of the PASP (i.e. 1 November 2016, on or after 23 February 2013 but before 5 November 2016). Hence, the former Scale 1 rates (now rates under Part 2 of Scale 1) will apply. The AVD payable is $360,000 ($6M x 6%).

 

 

A:

In the above case, the second property will be regarded as acquired before 23 February 2013, Scale 2 will apply. The AVD payable is $180,000 ($6M x 3%).

 

 

A:

Scale 2 applies as the residential property was acquired jointly by a HKPR with his close relative (i.e. spouse, parents, children, brothers and sisters) and each of the purchasers was acting on his/her own behalf and did not own other residential property at the time of acquisition. The AVD payable is $300,000 ($8M x 3.75%).

 

 

A:

Since one of the purchasers, i.e. Ms Cheung, owns another residential property in Hong Kong at the time of acquisition of the second property, the flat rate of 15% (Part 1 of Scale 1) applies. The AVD payable is $1,200,000 ($8M x 15%).

 

 

A:

If a residential property is jointly acquired by a HKPR and a non-HKPR, who is not a close relative of the HKPR, the flat rate of 15% under Part 1 of Scale 1 will apply. In the above situation, the amount of AVD payable is $1,200,000 (i.e. 8M x 15%). Furthermore, since Ms Cheung is a non-HKPR and not a close relative of Mr Wong, Buyer’s Stamp Duty (BSD) of $1,200,000 ($8M x 15%) will also be payable.

 

 

A:

The ASP will be charged with AVD of $935,000 ($22M x 4.25%) at Scale 2. As for the assignment, since Ms Lau already owned a residential property in Hong Kong, it will be chargeable with AVD at Scale 2, which is computed by reference to the stated consideration or the value of the property, whichever is the higher, less part of the stamp duty representing the share of the interest of Mr Au in the property. Accordingly, AVD of $467,500 [($22M x 4.25%) x 50%] will be charged on the assignment.

 

 

A:

The agreement will be charged with AVD of $935,000 ($22M x 4.25%) as aforesaid. As for the assignment, since Mr Au and Ms Lau are close relatives and Ms Lau does not own any other residential property, it will not attract any AVD; it will be charged with a fixed duty of $100 only.

 

 

A:

The Answers will be the same.

 

 

A:

The PASP will be charged with AVD of $375,000 ($10M x 3.75%) at Scale 2. As for the ASP, since Ms Kok already owned a residential property in Hong Kong, AVD of $375,000, at Scale 2, will be payable on the ASP.

 

 

A:

The PASP will be charged with AVD of $375,000 ($10M x 3.75%) as aforesaid. As for the ASP, since Mr Liu and Ms Kok are close relatives and Ms Kok does not own any other residential property, it will not attract any AVD; the ASP will be charged with a fixed duty of $100 only.

 

 

A:

The ASP will be charged with AVD of $3,300,000 ($22M x 15%) at the rate under Part 1 of Scale 1. The First Assignment will be charged with a fixed duty of $100. The assignment of the property (the Second Assignment) to Mr Chiu and Ms Mak in joint names will have the effect of disposing of half of the interest in the property. Assuming that there is no change in the value of the property, since Mr Chiu and Ms Mak are close relatives, Scale 2 will apply. In such a case, AVD of $412,500 [($22M x 50%) x 3.75%] will be charged on the Second Assignment.

 

 

A:

By adding the name of Ms Ho in the ASP, Mr Tang and Ms Fong have disposed of part of the residential property within 6 months from the date of acquisition and Ms Ho has acquired that part of the property from Mr Tang and Ms Fong. As Ms Ho is not a close relative of both Mr Tang and Ms Fong, AVD charged at 15% under Part 1 of Scale 1, Special Stamp Duty (SSD) and BSD will be payable, which are computed as follows:

Document	Nature of stamp duty	Amount ($)
PASP	AVD (charged at Scale 2)	$562,500 ($15M x 3.75%)
ASP	AVD (charged at the rate under Part 1 of Scale 1)	$750,000 [($15M x 15%) x 1/3]
ASP	SSD	$1,000,000 ($15M x 1/3 x 20%)
ASP	BSD	$2,250,000 ($15M x 15%)

          

 

 

A:

Since Mr Wan owned the original residential property in Hong Kong at the time of acquisition of the new property, Part 1 of Scale 1 will apply. The AVD payable for acquisition of the new property is $1,200,000 ($8M x 15%). Mr Wan can apply for a refund of part of the stamp duty paid since the new property was acquired by him on or after 5 November 2016 and the original property was sold within 12 months after the date the new property was assigned to him. The application can be made upon the completion of the disposal of the original property. In the above situation, the amount of partial refund is $900,000 ($1,200,000 – $8M x 3.75%). The application for a partial refund must be made not later than 2 years after the date of execution of the PASP for acquiring the new property (i.e. from 1 December 2016), or not later than 2 months after the date of the conveyance on sale for the disposal of the original property, whichever is the later.

 

 

A:

In the above situation, since the new property was acquired by Mr Wan before 5 November 2016 and the original property was sold more than 6 months from the date the new property was assigned to him, no stamp duty is refundable.

 

 

A:

In the above situation, no stamp duty will be refundable as the original property was sold more than 12 months from the date the new property was assigned to him.

 

 

A:

In the above situation, no stamp duty will be refundable as Mr Wan owned more than one residential property in Hong Kong at the time of acquisition of the new property. The partial refund of AVD for "change of residential property" does not apply.

 

 

A:

The acquisition of the residential property is chargeable with AVD at Scale 2. For the acquisition of the car parking spaces, Part 2 of Scale 1 will apply. The applicable stamp duty rates will be determined by reference to the total consideration of the residential property and the car parking spaces.

 

 

A:

 

 

A:

Since Mr Yip acquires more than 1 residential property under one instrument, although he does not own any residential property in Hong Kong on the date of acquisition of the residential properties, AVD at Part 1 of Scale 1 rate will apply. The AVD payable is $3,000,000 ($20M x 15%).

 

 

A:

If Mr Yip is acting on his own behalf in acquiring the properties, AVD at Scale 2 rates will apply. The AVD payable is $750,000 ($20M x 3.75%).

 

 

A:

If there is no evidence to prove that the alterations works have been approved by the Building Authority or certified by an authorized person, the properties will be regarded as two separate units. AVD at Part 1 of Scale 1 rate will apply. The amount of AVD payable is $3,000,000 (i.e. $20M x 15%).

 

 

A:

If Mr Yip is acting on his own behalf in acquiring the properties, AVD at Scale 2 rates will apply. The agreement will be charged with AVD of $750,000 ($20M x 3.75%).

 

 

A:

Since Mr Chan does not own any other residential property in Hong Kong at the time of acquisition of the subject property, Scale 2 rates will apply. Compared with the AVD payable under the former Scale 2 rates, the AVD saved by him at different purchase prices of the property is appended below.

Purchase price of the property	AVD payable under Scale 2 rates applicable to instruments executed before 11 am on 22.2.2023	AVD payable under Scale 2 rates applicable to instruments executed at 11 am on 22.2.2023 or thereafter	AVD Saved
$5,000,000	$150,000	$112,500	$37,500
$6,500,000	$230,000	$185,000	$45,000
$9,000,000	$337,500	$270,000	$67,500
$10,000,000	$375,000	$370,000	$5,000

   

 

 

A:

In this case, the subject property is regarded as having been acquired on the date of the PASP (i.e. 20 February 2023, before 11 am on 22 February 2023). Hence, the former Scale 2 rates will apply. The AVD payable is $337,500 ($9,000,000 × 3.75%).

 

 

A:

In this case, the subject property is regarded as having been acquired on the date of the PASP (i.e. 24 October 2023, before 25 October 2023). Hence, the former Part 1 of Scale 1 rate will apply. The AVD payable is $1.5M ($10M × 15%).