Like Tree16Likes

Is stamp duty exempted if I transfer a property to a family member?

Reply
Page 1 of 2 1 2 LastLast
  1. #1

    Join Date
    Aug 2015
    Location
    TKO
    Posts
    46

    Is stamp duty exempted if I transfer a property to a family member?

    Does anyone have any experience with transferring a property name to a family member?
    Is there any stamp duty tax? or is it even considered as a buy/sell transaction?

    I was looking at the IRD website and it sounds like it's exempted.
    But I can't confirm whether it's true or not.
    The reason is I need to get my name off a property in order to buy a new residential property.

    https://www.ird.gov.hk/eng/faq/ssd.htm

    8.

    Q:

    Under what circumstances will SSD be exempted?





    A:

    Payment of the SSD is exempted in the following cases –

    (i) Nomination of a close relative(s) (that is, the spouse, parents, children, brothers or sisters) of the original purchaser(s) to take up the assignment of the residential property. If there is more than one nominee, the nominees must also be close relative(s); and sale or transfer of the residential property to a close relative(s).





    10.

    Q:

    If a property is transferred to a person from his spouse, parents, children, brothers or sisters by way of gift on or after 20 November 2010 and is disposed of within 24 months (if the property was acquired between 20 November 2010 and 26 October 2012) or 36 months (if the property was acquired on or after 27 October 2012), will SSD be payable?





    A:

    Sale or transfer of a residential property to spouse, parents, children, brothers or sisters is exempted from SSD. However, if the donee disposes of the residential property within 24 months (if the property was acquired between 20 November 2010 and 26 October 2012) or 36 months (if the property was acquired on or after 27 October 2012) from the date of the deed of gift, the transaction is SSD-chargeable.


    Coolboy likes this.

  2. #2

    Join Date
    Jan 2020
    Posts
    6

    Yes you have to pay special stamp duty IF the property was purchased within 36 months.

    After that then no you don't have to pay the special stamp duty.

    greentealatte and Coolboy like this.

  3. #3

    Join Date
    Aug 2015
    Location
    TKO
    Posts
    46

    Thanks for the reply!!
    Yes the property is purchased more than 36 months ago.
    Do I need to find a lawyer to process the transaction? I'm not exactly sure how to go through the process. Any guidance will be appreciated!


  4. #4

    Join Date
    Dec 2002
    Location
    ???
    Posts
    30,616

    Best to find a lawyer that does conveyancing.. Most of them do. Should be easy if the property is mortgage free.

    greentealatte likes this.

  5. #5

    Join Date
    Dec 2008
    Location
    -
    Posts
    1,680

    If purchased more than 36 months ago then no SSD. But do you need to pay AVD when transferring to spouse?

    greentealatte likes this.

  6. #6

    Join Date
    Dec 2018
    Posts
    1,063
    Based on this paragraph in the IRD's Stamp Office Interpretation and Practice Notes No. 8 (Revised) the answer would appear to be that normal ad valorem duty is payable on transfers between close relatives. However, best to check with a conveyancing solicitor:

    51. Where a residential property is sold or transferred by a person to his
    or her close relative who is acting on his or her own behalf, irrespective of
    whether or not they are HKPRs or beneficial owners of any other residential
    property in Hong Kong on the date of sale or transfer, the relevant chargeable instrument is chargeable with AVD at scale 2 rates."

    (Scale 2 rates are the normal rates of stamp duty.)

    https://www.ird.gov.hk/eng/pdf/e_soipn08.pdf


    greentealatte and nivek2046 like this.

  7. #7
    bdw
    bdw is online now

    Join Date
    Feb 2009
    Posts
    5,718

    Are you talking about stamp duty or SSD (special stamp duty)?


  8. #8

    Join Date
    Dec 2002
    Location
    ???
    Posts
    30,616
    3. If I want to sell or transfer my flat to a member of my family or a relative, what should I be aware of?

    You don't need an estate agent;

    You don't need to sign any provisional agreement;

    You still have to appoint a solicitor to handle the sale or transfer;

    If the person is a relative related to you by blood, marriage or adoption, one solicitor can represent both parties . Otherwise, you must appoint another solicitor to represent your relative;

    The stamp duty will be calculated according to the market price of the property if the purchase price is below the market price or if the property is transferred as a gift ( i.e. no purchase price is payable) . Please check with your solicitor or the Stamp Office for details of the calculation.
    From https://www.hkclic.org/en/topics/sal...erty/all.shtml

    Regardless, it is best to consult with a local lawyer who handles conveyancing and if possible find one who has done this before. Given the number of stamp / added / whatever duties payable, best to do this before you consider anything...
    traineeinvestor likes this.

  9. #9

    Join Date
    Aug 2015
    Location
    TKO
    Posts
    46

    Deleted

    Last edited by greentealatte; 04-01-2020 at 01:41 PM.

  10. #10

    Join Date
    Aug 2015
    Location
    TKO
    Posts
    46

    Thanks will do!
    The term conveyancing was what I was looking for


Reply
Page 1 of 2 1 2 LastLast