EAQE Conveyancing, mortgages and property tax question: Using the residential ad valorem stamp duty rates in force for instruments executed

EAA EAQEConveyancing, mortgages and property tax

Ms Lui buys a flat for HK$8,000,000 under an agreement signed in Oct 2026. Using the residential ad valorem stamp duty rates in force for instruments executed on or after 26 Feb 2026, what is the duty?

A HK$240,000
B HK$180,000
C HK$300,000
D HK$100

Show the answer and explanation

Answer: A. HK$240,000

Answer: HK$240,000. Working: HK$8,000,000 falls in the HK$6,642,861 to HK$9,000,000 band, charged at 3% of the whole amount: 3% × HK$8,000,000 = HK$240,000. Why not the others: - HK$180,000: This uses the 2.25% band, which applies only up to HK$6,000,000. - HK$300,000: This uses 3.75%, the band for over HK$10,080,000. - HK$100: The HK$100 flat duty applies only up to HK$4,000,000. Rule: Ad valorem stamp duty is charged on the higher of consideration and value; for a residential property between HK$6,642,861 and HK$9,000,000 the rate is 3% of the whole amount (Scale 2 rates for instruments executed on or after 26 Feb 2026). The exam paper prints the rate table. Source: Stamp Duty Ordinance (Cap. 117); IRD IRSD123 (5/2026); as at Oct 2026

Common mistake

Applying a rate only to the excess over the band's lower limit in a whole-value band.

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An original question written to the published EAQE 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.