On February 28, 2025, the Stamp Duty (Amendment) Bill 2025 was gazetted in LegCo. This bill seeks to amend the Stamp Duty Ordinance to adjust the rates of ad valorem stamp duty ("AVD") for property transactions with effect from February 26, 2025.
This article was generated using SAMS, an AI technology by Timothy Loh LLP.
SPOTLIGHT ON
FAMILY OFFICES
On February 28, 2025, the bill Stamp Duty (Amendment) Bill 2025 was gazetted in LegCo. This bill seeks to amend the Stamp Duty Ordinance to adjust the rates of ad valorem stamp duty ("AVD") for property transactions with effect from February 26, 2025, the announcement date of the 2025-26 Budget.
The bill is about adjusting the rates of AVD under Part 1 of Scale 1 and Scale 2 for residential and non-residential property transactions to ease the burden on buyers of properties with lower values. The proposed adjustments include widening the value band for AVD at $100 from $3 million to $4 million.
The adjustments aim to reduce the stamp duty applicable to residential and non-residential property transactions with an amount or value of consideration above $3 million and up to $4,323,780, with the reduction up to $59,900. The estimated number of beneficiaries per annum is around 10,600, or about 15% of transactions.
The bill also includes an order by the Chief Executive to give full force and effect to the proposed adjustments before the Bill's enactment, ensuring that the amended rates are promptly applied.
View the full article:Source
