Hong Kong Ordinances

STAMP DUTY ORDINANCE - SECT 24

Stamp duty chargeable where conveyance etc. is in consideration of debt etc.

(1) In the case of a conveyance on sale or any transaction whereby a
beneficial interest in Hong Kong stock passes, where the conveyance or
transaction is in consideration, wholly or in part, of any debt due to the
transferee or is subject either certainly or contingently to the payment or
transfer of any money or stock, whether or not being or constituting a charge
or incumbrance upon the property or interest so conveyed or passing, the debt,
money or stock is to be deemed the whole or part, as the case may be, of the
consideration by reference to which the conveyance or contract note is
chargeable with stamp duty.

(2) Where a conveyance on sale or transaction whereby a beneficial interest in
any Hong Kong stock passes is in consideration wholly or in part of any debt
due to the transferee and, apart from this subsection, the consideration by
reference to which the conveyance or contract note would be chargeable with
stamp duty would exceed the value of the property conveyed or beneficial
interest passing, that consideration shall be treated as reduced to that
value; and the conveyance or contract note shall not be duly stamped unless it
is stamped under section 13(3).

(3) Where, by virtue of or in connection with any transaction referred to in
subsection (1) whereby a beneficial interest in any shares in a body corporate
passes, any liability is incurred by the transferee in respect of any
indebtedness of the body corporate, the transaction shall, in addition to any
other payment of money or transfer of shares to which it is subject, be deemed
to be subject to the payment of an amount of money equal to the amount of such
indebtedness.