SQE Leasing and tenancy question: Using the lease rates in IRSD123

EAA SQELeasing and tenancy

Kowloon Homes Agency arranges a one-year tenancy of a flat in Hung Hom at HK$15,000 a month, with a deposit of HK$30,000. Using the lease rates in IRSD123 (5/2026), what stamp duty is payable on the tenancy agreement?

A HK$525
B HK$900
C HK$1,800
D HK$450

Show the answer and explanation

Answer: D. HK$450

Answer: HK$450. A term not exceeding 1 year is charged at 0.25% of the total rent payable over the term. Working: Total rent = HK$15,000 x 12 = HK$180,000 Duty = 0.25% x HK$180,000 = HK$450 Why not the others: - HK$525: includes the HK$30,000 deposit (0.25% x HK$210,000); deposits are not taken into account. - HK$900: uses the 0.5% rate, which is for terms over 1 year and up to 3 years. - HK$1,800: uses the 1% rate, which is for terms over 3 years. Rule: For a lease of 1 year or less, duty is 0.25% of the total rent for the term; any deposit mentioned in the lease is disregarded. Source: Stamp Duty Ordinance (Cap. 117), First Schedule, Head 1(2); IRD Stamp Duty Rates Table IRSD123 (5/2026), Lease, notes 1a-1b; as at Oct 2026

Common mistake

Adding the deposit to the rent, or using the 0.5% band for a one-year term.

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An original question written to the published SQE syllabus. Figures in the explanation carry their effective dates; check them against the current law before relying on them. Independent exam practice. Not affiliated with or endorsed by the Estate Agents Authority (EAA) or the examination administrator.