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If a residential property is jointly acquired by more than one person and any of the purchasers already owned a residential property in Hong Kong at the time of acquisition, AVD at Scale 1 will be payable on the entire stated consideration or full value of the property, whichever is the higher, regardless of the respective share of interest of the purchasers in the property acquired.The fact that the joint owner is a close relative does not make any difference in this respect.

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Please refer to the FAQs and the illustrative examples for the Proposed new AVD rate for further details.

On 11 April 2017, the Government announced that it would introduce legislative amendments to tighten up the existing exemption arrangement for Hong Kong permanent resident (“HKPR”), to the effect that, unless specifically exempted or otherwise provided in the law, acquisition of more than 1 residential property under a single instrument executed on or after 12 April 2017 will be subject to the proposed new AVD flat rate at 15%, even if the purchaser/transferee is a HKPR who is acting on his/her own behalf and is not a beneficial owner of any other residential property in Hong Kong at the time of acquisition.

acquisition of a residential property (whether or not together with a car parking space) by a HKPR who is acting on his/her own behalf and does not own any other residential property (and car parking space, if applicable) in Hong Kong at the time of acquisition;acquisition of a residential property (whether or not together with a car parking space) by two or more HKPRs jointly as co-owners or joint owners and each of the purchasers is acting on his/her own behalf and does not own any other residential property (and car parking space, if applicable) in Hong Kong at the time of acquisition;acquisition of a residential property by a HKPR jointly as a co-owner or joint owner with a close relative or close relatives (i.e.

spouse, parents, children, brothers and sisters) who is/are not HKPR and each of the purchasers is acting on his/her own behalf and does not own any other residential property in Hong Kong at the time of acquisition;acquisition or transfer of residential properties between close relatives, irrespective of whether they are HKPRs and whether they are beneficial owners of any other residential property in Hong Kong at the time of the acquisition or transfer;acquisition or transfer of a property by a court order or pursuant to a court order, which includes a foreclosure order obtained by a mortgagee whether or not it falls under the definition of a financial institution within the meaning of section 2 of the Inland Revenue Ordinance (Cap.

Will Scale 1 apply where the parties entered into a Provisional Agreement for Sale and Purchase (PASP) in respect of a property before 23 February 2013 and signed an Agreement for Sale and Purchase (ASP) on or after that date?