Buyer's Stamp Duty: Exemption For Redevelopment Purposes?

Keywords: buyer's stamp duty, exemption, redevelopment, BSD

On 29 October and 1 November 2012, we published the first and second of two legal updates on the introduction of Buyer's Stamp Duty (BSD) and the adjusted rates and extension of the holding period in respect of Special Stamp Duty (SSD).

Exemption for redevelopment purposes?

BSD is chargeable on all sales and purchases of residential flats except where a buyer is a Hong Kong Permanent Resident (HKPR).

The Government says that exemption will be given for the acquisition of residential properties for redevelopment purposes, but how this will work is not yet clearly defined:

• In the "FAQ" session for BSD on the Inland Revenue Department's website, Q6 lists out the circumstances in which BSD will be exempted. Item (ix) provides that acquisition for redevelopment purposes will be exempted: "acquisition of residential properties (including bare sites) for the construction of a prescribed number of