![header](../../images/publication/property.jpg)
Legal Publications > Property |
Car Parking Space and Stamp Duty |
![]() ![]() ![]() |
For the purposes of the Stamp Duty Ordinance (Cap. 117), car parking space (CPS) is non-residential property, but if it falls within the applicable legal provisions, there is an exception. As a result, different rates of stamp duty (SD) may be applicable. The key factor is in what combination CPS is purchased. We summarize below the stamp duty liabilities of a single purchaser in different scenarios of purchasing CPS. For SD payable in individual cases, readers are advised to consult their own professional advisers.
(1) CPS purchased standalone or with other non-residential property
When a CPS is so purchased, it is non-residential property. According to Cap. 117, the SD are payable as follows:
Whether a CPS could lawfully be purchased standalone depends on the terms of the relevant Deed of Mutual Covenant and the Government Lease. It is therefore mandatory to have this clarified before any commitment to purchase is made.
(2) One CPS purchased with residential property s
When a CPS is so purchased, the applicable rate of SD could be the same as the residential property purchased. The SD liabilities under Cap. 117 are as follows:
To be qualified for paying SD at Scale 2 (i.e. the old rate before any recent increases) pursuant to section 29AK, only one single CPS may be purchased with a residential property. If more than one CPS are purchased with a residential property, the SD rate applicable to all CPSs is at Scale 1.
Section 29AK does not require the CPS purchased together with a residential property to belong to the same lot or development. Hence, it seems that the application of the provisions would not be affected even if the CPS and the residential property situate in different parts of Hong Kong. |
[i] Assuming that the Stamp Duty (Amendment) Bill 2017 will be passed in due course.
|
PLEASE NOTE The law and procedure on this subject are very specialised. This article is a general explanation for your reference only and should not be relied on as legal advice for any specific case. If legal advice is needed, please contact our solicitors. Published by Christine M. Koo & Ip, Solicitors & Notaries LLP @2017 |
back to Index |