Question

（a) Mr. B is a HKPR and does not own any residential property in Hong Kong. On 1 December 2016, he entered into an agreement for sale to acquire a residential property at a purchase price of $25M. On 30 December 2016, his spouse Ms. C, who is a HKPR and owned a residential property in Hong Kong on that date, was added in the assignment as one of the joint owners of the property. Both Mr. B and Ms. C acted on their own behalf in acquiring the property. Calculate the stamp duty payable and elaborate the answers in detail.                                                                                                                              
                                                      
(b) Same as part (a), but Ms. C is not Mr. B’s close relative. What is the amount of AVD payable? Show the calculations and elaborate your answer.                                    


(c) Mr. F is a HKPR who owns a single residential property (the original property) in Hong Kong. On 20 November 2016, he entered into a PASP to acquire another residential property (the new property) at a purchase price of $6M. On 15 May 2017, he entered into a PASP to dispose of the original property. Can Mr. F claim a partial refund of the AVD paid? If yes, show the calculations and elaborate your answer; if no, explain whynot.                                         

Answer 1

a) In this case Calculated Stamp duty os ($25x3%), $75000; According to HKPR law Buying Second property having Stamp duty is 3% considering Husband wife rerlation

b) In this case,  The AVD payable is $3,75,000 ($25M x 15%). this will be consider 1st property having No relationship.

c) Since Mr F owns another residential property in Hong Kong at the time of acquisition of the new property, AVD at the proposed new AVD rate will apply. The AVD payable for acquisition of the new property is $900,000 ($6M x 15%). Since the original property was sold within 6 months from the date of assignment of the new property, Mr F can apply for a refund of part of the stamp duty paid (being the difference between the AVD payable at Scale 2 rates and the proposed new AVD rate) after the disposal transaction has been completed. The refund amount is $720,000 ($900,000 – $6M x 3%).