SQE Conveyancing, mortgages and property tax question: progressive rating system for domestic tenements

Answer: C. HK$39,500

Answer: HK$39,500. Working: - First HK$550,000 at 5%: HK$27,500 - Next HK$150,000 (up to HK$700,000) at 8%: HK$12,000 - Total: HK$39,500 Why not the others: - HK$35,000: a flat 5% on the whole rateable value, which applies only where RV is HK$550,000 or less. - HK$56,000: 8% on the whole value; the higher rates apply only to the slices above HK$550,000. - HK$45,500: charges the HK$150,000 slice at 12%; 12% applies only above HK$800,000. Rule: From 1 Jan 2025, domestic tenements with RV over HK$550,000 pay 5% on the first HK$550,000, 8% on the next HK$250,000 and 12% on the remainder; non-domestic tenements pay 5%. Source: Rating Ordinance (Cap. 116), as amended by the Rating (Amendment) Ordinance 2024; RVD, Progressive Rating System for Domestic Tenements (rvd.gov.hk), checked 11 Oct 2026; as at Oct 2026