Government welcomes passage of Stamp Duty (Amendment) Bill 2026, increasing stamp duty rate for high-value residential properties.
This article was generated using SAMS, an AI technology by Timothy Loh LLP.
SPOTLIGHT ON
FAMILY OFFICES
On 20 May 2026, the Legislative Council passed the Stamp Duty (Amendment) Bill 2026, which the Government welcomed. This amendment raises the stamp duty rate for residential properties where the consideration or value exceeds $100 million from 4.25 per cent to 6.5 per cent, effective 26 February 2026 in line with the 2026-27 Budget.
Fiscal Rationale and Scope
A Government spokesperson indicated that the measure upholds the principle of affordable users pay, projecting an annual revenue increase of approximately $1 billion. Approximately 0.3 per cent of the highest-priced residential property transactions will be subject to this change.
Compliance and Enforcement Procedures
The enacted legislation is scheduled for gazettal on 29 May. For transactions with instruments executed between 26 February and 28 May, the Inland Revenue Department will notify relevant solicitors to request buyers or sellers settle the stamp duty differential by 29 June. Non-payment within the deadline may attract a late stamping penalty of up to 10 times the difference, with the IRD empowered to recover outstanding duties via civil proceedings.
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