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Additional duty on instruments for disposal of immovable property within specified holding period

Stamp Duties Act 1929

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—(1) Subject to the provisions of this Act, every contract or agreement for the sale of any specified immovable property (or any part thereof) which is chargeable with duty pursuant to section 22 (including any instrument chargeable in like manner) is chargeable with additional ad valorem duty (the amounts of which are indicated in the First Schedule), payable by the vendor of the property, in respect of the consideration for that sale as if it were an actual conveyance on sale of immovable property, if the property or part thereof is disposed of under that contract or agreement —(a)while this section is in force; and(b)before the end of the period prescribed in the section 22A Order in relation to the specified immovable property (called in this section the specified holding period) from the date on which the vendor acquired that property or any part thereof.(2) Subject to the provisions of this Act, every conveyance on sale of any specified immovable property (or any part thereof) is chargeable with the same additional ad valorem duty under subsection (1), payable by the vendor of the property, in respect of the consideration for that sale, if the property or part thereof is disposed of under that instrument —(a)while this section is in force; and(b)before the end of the specified holding period from the date on which the vendor acquired that property or part thereof.(3) Subject to the provisions of this Act, every instrument —(a)which is a conveyance or transfer operating as a voluntary disposition inter vivos of any specified immovable property (or any part thereof) and which is chargeable with duty under section 16 as if it were a conveyance or transfer on sale of that property;(b)which is a conveyance or transfer of any specified immovable property (or any part thereof) —(i)by way of release or settlement; or(ii)pursuant to a declaration of trust where the beneficial interest in the property passes; or(c)by which any specified immovable property (or any part thereof) is transferred, by way of distribution in specie upon the voluntary winding up of a private company, to a person in the person’s capacity as shareholder in that company,is treated for the purpose of this section as a conveyance on sale of immovable property and chargeable with the same additional ad valorem duty under subsection (1), payable by the transferor, in respect of the value of the property or part thereof so conveyed or transferred, if the property or part thereof is disposed of under that instrument —(d)while this section is in force; and(e)before the end of the specified holding period from the date on which the transferor acquired that property or any part thereof.(4) Subject to the provisions of this Act and unless the section 22A Order specifies otherwise, every instrument which is a lease or an agreement for lease of any specified immovable property (or any part thereof) for a term equal to or exceeding the prescribed term, is treated for the purpose of this section as a conveyance on sale of immovable property and chargeable with the same additional ad valorem duty under subsection (1), payable by the lessor, in respect of the consideration for the lease, if the property or part thereof is disposed of under that instrument —(a) while this section is in force; and(b)before the end of the specified holding period from the date on which the lessor acquired that property or any part thereof.(5) For the purposes of subsection (4) —(a)the fact that the term of a lease or an agreement for lease may be extended pursuant to an option is to be taken into consideration in determining whether its term is equal to or exceeds the prescribed term; and(b)the fact that a lease or an agreement for lease for a specified period of time is determinable on the happening of an event within that time is not to be taken into consideration in determining its term.(6) Subject to the provisions of this Act, an instrument by which an exchange of any specified immovable property (or any part thereof) is effected is treated for the purpose of this section as a conveyance on sale of immovable property if the property or part thereof is disposed of under the instrument —(a)while this section is in force; and(b)before the end of the specified holding period from the date on which the party who disposes of the property or part thereof acquired that property or any part thereof,and is chargeable with the same additional ad valorem duty under subsection (1), payable by that party, in respect of the value of the property or part thereof being exchanged that is of the greater value.(7) In subsection (6), where a party disposes of 2 or more properties or parts thereof to another party under the instrument, those properties or parts are treated as one property or part, and their values are aggregated, for the purpose of determining the value of the property or part thereof being exchanged that is of the greater value.(8) Where in any conveyance on sale of immovable property or any part thereof (including any instrument which is chargeable in like manner) the vendors, lessors or transferors of the property or part are joint owners of that property or part, the duty payable by each vendor, lessor or transferor under this section is a proportion of the duty commensurate with their respective shares in that property or part; and for this purpose, joint tenants of any property or part are presumed, until the contrary is proved, to have equal shares in the property or part.(9) For the purposes of determining the additional duty chargeable on a conveyance on sale of immovable property or any part thereof (including any instrument which is chargeable in like manner) —(a)the consideration or value (whichever is applicable) on which the duty is based, is reduced by such amount as the Commissioner considers to be attributable to such part of the specified immovable property that is permitted to be used under the Master Plan or the Planning Act 1998 (as the case may be) for a purpose that is not a prescribed purpose; and(b)where parts of the property were acquired by the vendor, lessor or transferor at different times, the duty is reduced by such amount as the Commissioner determines to be in excess of the duty which would have been chargeable under this section if the property had been conveyed in separate parts.(10) The Commissioner’s decisions under subsection (9)(a) and (b), respectively, are final.(11) Section 22(3) applies to a vendor, lessor or transferor of specified immovable property or a part thereof as if —(a)the first reference in that provision to purchaser or sub‑purchaser is substituted with a reference to such vendor, lessor or transferor; and(b)the references in that provision to duty under that section are substituted with references to the additional duty under this section.(12) Section 22(5) applies to a vendor, lessor or transferor of specified immovable property or a part thereof as if —(a)the references in that provision to a contract or agreement for sale include a conveyance on sale; and(b)the references in that provision to duty under that section are substituted with references to the additional duty under this section.(13) Where any duty paid under section 22 in respect of any contract or agreement is refunded under that section, any additional duty paid under this section in respect of that same contract or agreement must likewise be refunded.(14) Subject to subsection (15) and the section 22A Order, where any specified immovable property or part thereof is acquired or disposed of —(a)under contract, the time at which the acquisition or disposal is made is the time the contract is made (and not, if different, the time at which the property or part is conveyed or transferred), and if the contract is conditional on the exercise of an option, the time at which the acquisition or disposal is made is the time when the option is exercised;(b)by way of gift, release or settlement or under a declaration of trust, the time at which the acquisition or disposal is made is the time when the property or part or any beneficial interest therein passes; or(c)by any other means, the time at which the acquisition or disposal is made is the time the property or part or any interest therein is vested or divested (as the case may be) by operation of law or otherwise.(15) In this section —(a)a reference to the section 22A Order is a reference to the order made under section 22B bringing this section into force;(b)a reference to specified immovable property is a reference to immovable property —(i)that is either —(A)zoned in the Master Plan in a manner specified in the section 22A Order; or(B)permitted under the Planning Act 1998 for use for a purpose specified in the section 22A Order; and(ii)unless the section 22A Order specifies otherwise, that is acquired by the person liable to pay the additional ad valorem duty under the relevant subsection on or after the date of coming into operation of this section as specified in the Order;(c)a reference to acquisition or disposal of any property does not include a reference to a conveyance or transfer by way of security of any property (including a retransfer on redemption of the security);(d)where a person (Q) entitled to any property by way of security or to the benefit of a charge or incumbrance on any property deals with the property for the purposes of enforcing or giving effect to the security, charge or incumbrance, Q’s dealings with the property are treated as if they were done through Q as nominee by the person entitled to the property subject to the security, charge or incumbrance;(e)a reference to disposal of any property does not include a reference to a disposal as a result of bankruptcy, dissolution, receivership or winding up of the owner of the property, other than a voluntary winding up;(f)a reference to a person acquiring any property includes a reference to a situation where —(i)subsequent to the person’s acquisition of the immovable property, being such vacant land or land with one or more buildings thereon as may be prescribed, the land is zoned in the Master Plan in a prescribed manner, or any building or part thereof on the land is permitted under the Planning Act 1998 to be used for a prescribed purpose, whichever is specified in the section 22A Order in respect of that immovable property; or(ii)subsequent to the person’s acquisition of any part of a building, the part is permitted under the Planning Act 1998 to be used for a prescribed purpose,and (unless the section 22A Order specifies otherwise) the time at which the acquisition is made is the time when the zoning in the Master Plan is altered in such manner or when the permission under that Act is granted, as the case may be; and(g)a reference to a purpose permitted by the Planning Act 1998 is a reference to —(i)a purpose permitted by a written permission granted under section 14(4) of that Act, other than one that is granted for a period of 10 years or less;(ii)a purpose authorised by a notification under section 21(6) of that Act; or(iii)such other purpose as may be prescribed.(16) Despite anything in this section —(a)every conveyance on sale of property and every contract or agreement for the sale of any equitable estate or interest in any property or for the sale of any estate or interest in any property, being a conveyance, a contract or an agreement made before the date of coming into operation of this section; and(b)every exempt instrument specified for the purposes of this section by rules made under section 77,is chargeable with duty under this Act as if this section were not in force.

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