EAQE Conveyancing, mortgages and property tax question: adult son by a deed of gift in Oct

EAA EAQEConveyancing, mortgages and property tax

Mrs Ip gives her flat, worth HK$6,000,000, to her adult son by a deed of gift in Oct 2026. Which statement about stamp duty is correct?

A No duty is payable, because there is no consideration
B Only HK$100 is payable on any gift between family members
C Duty on the value at 2.25%, which is HK$135,000
D Duty is charged at 15% on gifts

Show the answer and explanation

Answer: C. Duty on the value at 2.25%, which is HK$135,000

Answer: Ad valorem duty on the value, 2.25% × HK$6,000,000 = HK$135,000. Why not the others: - No duty: A voluntary disposition is charged on the property's value. - HK$100 for family gifts: There is no general family exemption for gifts. - 15%: Not a current rate for any transfer. Rule: Duty is charged on the higher of consideration and value; a gift (voluntary disposition inter vivos) is charged as a sale on the value. For HK$6,000,000 the residential rate is 2.25%. Source: Stamp Duty Ordinance (Cap. 117), section 27; IRD IRSD123 (5/2026); as at Oct 2026

Common mistake

Thinking gifts are free of stamp duty.

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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.