SQE Conveyancing, mortgages and property tax question: ad valorem stamp duty

EAA SQEConveyancing, mortgages and property tax

In October 2026 a buyer signs an agreement to buy a house on The Peak for HK$120,000,000. What ad valorem stamp duty is payable on the agreement?

A HK$5,100,000
B HK$7,800,000
C HK$10,250,000
D HK$18,000,000

Show the answer and explanation

Answer: B. HK$7,800,000

Answer: HK$7,800,000. Working: HK$120,000,000 is above HK$109,574,470, so the 6.5% rate applies to the whole price: 6.5% x HK$120,000,000 = HK$7,800,000. Why not the others: - HK$5,100,000: 4.25%, the top residential rate before 26 Feb 2026 (and still the top rate for non-residential property under Scale 3). - HK$10,250,000: the marginal formula (HK$4,250,000 + 30% of the excess over HK$100m) applies only up to HK$109,574,470. - HK$18,000,000: 15%, the old Part 1 of Scale 1 rate abolished for residential instruments from 28 Feb 2024. Rule: Residential instruments executed on or after 26 Feb 2026 with consideration over HK$100m are charged at 6.5% (with marginal relief between HK$100m and HK$109,574,470). Source: Stamp Duty Ordinance (Cap. 117); IRD press release, 4 Mar 2026; IRD Stamp Duty Rates Table IRSD123 (5/2026); as at Oct 2026

Common mistake

Using the pre-26 Feb 2026 top rate of 4.25% for a residential property over HK$100m.

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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.