hk Ad valorem stamp duty (AVD) - Scale 1 and Scale 2

hk Ad valorem stamp duty (AVD) - Scale 1 and Scale 2

hk Ad valorem stamp duty (AVD) - Scale 1 and Scale 2
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1.

Q:

What are the rates (including marginal relief) at Scale 1?
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2.

Q:

What are the rates (including marginal relief) at Scale 2?
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3.

Q:

Under what circumstances will AVD be payable at Part 1 of Scale 1?
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4.

Q:

Under what circumstances will AVD be payable at Part 2 of Scale 1 rates?
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5.

Q:

Will Part 1 of Scale 1 apply if a HKPR purchases a non-residential property on or after 5 November 2016?
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6.

Q:

Who will be liable to pay AVD?
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7.

Q:

Under what circumstance is the buyer the only liable person to pay the AVD?
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8.

Q:

What does “own” in relation to a residential property mean?
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9.

Q:

How can a purchaser demonstrate that he does not own any other residential property?
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10.

Q:

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?
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11.

Q:

How to determine whether a person is a HKPR under the Stamp Duty Ordinance (Cap.117) (SDO) or not?
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12.

Q:

What is the meaning of “single residential property”?
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13.

Q:

What documents will the Stamp Office base on to determine whether the subject property is a single residential property?
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14.

Q:

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?
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15.

Q:

Will a rooftop together with a residential unit be treated as one single residential property?
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16.

Q:

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?
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17.

Q:

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?
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18.

Q:

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?
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19.

Q:

Under what circumstances will AVD be not chargeable at Part 1 or Part 2 of Scale 1?
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20.

Q:

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?
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21.

Q:

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?
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22.

Q:

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?
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23.

Q:

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?
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24.

Q:

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?
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25.

Q:

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?
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26.

Q:

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?
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27.

Q:

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?
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28.

Q:

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?
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29.

Q:

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?
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30.

Q:

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?
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31.

Q:

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?
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32.

Q:

Will any relief be given to change of residential property cases?
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33.

Q:

Will Part 1 of Part 1 of Scale 1 apply where a HKPR acquires a new residential property after disposing of all of his existing residential properties?
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34.

Q:

Will any relief be given to a person who is acquiring property for redevelopment?
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35.

Q:

When should AVD at Part 1 of Scale 1 be paid?
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36.

Q:

What are the transitional stamping arrangements for residential properties transactions involving more than a single residential property under a single instrument?
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37.

Q:

Will the AVD paid be refunded if the parties cancel the agreement for sale after the AVD has been paid?
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38.

Q:

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?
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39.

Q:

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?
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40.

Q:

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?
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41.

Q:

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?
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42.

Q:

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?
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43.

Q:

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?
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44.

Q:

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?
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45.

Q:

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?