Luxury property transactions up 86% over $20mln

Financial Services & the Treasury Department issued tax assessments for the remaining 1,650 taxable cases, including $410mln in profits tax.

Property transactions valued at more than $20 million have grown 86% since the Government raised the stamp-duty rate on such properties to 4.25% in April, according to a Financial Services & the Treasury Department report.

Secretary for Financial Services & the Treasury Prof KC Chan told legislators on Wednesday the Inland Revenue Department Stamp Office recorded 3,223 property transactions valued at more than $20 million from April to October, up 86% on the same period last year. They involved $6.16 billion in stamp duty, up 127% over the same period last year.

In 2008-09 the department identified 4,300 cases of suspected property speculation. It had investigated 3,600 cases by the end of October. Of those, 1,600 were considered untaxable. Of the 2,000 cases found to be chargeable, 350 were already reported in returns filed by the taxpayers.

The department has issued tax assessments for the remaining 1,650 taxable cases, which involve $410 million in profits tax.