February 2017 - The new Ad Valorem Duty (“AVD”)

On 4 November 2016, the Government proposed to increase the ad valorem stamp duty rates on transfer of Hong Kong residential properties from the existing Scale 1 rates (i.e. ranging from 1.5% to 8.5%) to a flat rate of 15% with effect from 5 November 2016. The Stamp Duty (Amendment) Bill 2017 (the “Bill”) was gazetted on 27 January 2017 for the enactment of the proposed new measure.