Government gazetted Stamp Duty Amendment Bill

Watch out for these new measures.

According to a report, the Financial Services & the Treasury Bureau today gazetted the Stamp Duty (Amendment) Bill 2013 to implement new measures announced on February 22 to further address the overheated property market.

The measures include increasing the ad valorem stamp duty rates on transactions for residential and non-residential properties, and advancing the charging of ad valorem stamp duty on non-residential property transactions from the conveyance on sale to the agreement for sale.

They are applicable to all people except Hong Kong permanent residents buying residential properties but who do not own any residential property in Hong Kong on the date of acquisition.

In drafting the bill, with reference to the existing special stamp duty and the proposed buyer's stamp duty regimes, the Government proposes to grant exemptions from the enhanced ad valorem stamp duty rates under specified circumstances.

It also proposes to put in place a refund mechanism for redevelopment projects and permanent residents who acquire a new residential property before disposing of their original one.

In order that adjustments can be made in a timely manner as and when necessary having regard to the market situation, the bill proposes to enable the Financial Secretary to amend the value bands and rates of ad valorem stamp duty by way of subsidiary legislation subject to negative vetting by the Legislative Council.