Seller stamp Duty – a Primer

I had a query from a client today about seller stamp duty or SSD I realized that many people are still very confused about how much they need to pay. As the law society conditions of sale 2012 has just been released a couple of days ago, and going through the myriad of pages of the new conditions of sale has been tedious, the cooling measures that had been in place since Feb 2010. There has been some changes to the Seller stamp duty, and with the Additional Buyer Stamp Duty (ABSD), many are confused. But we must understand that SSD affects the Seller, while the ABSD affects the buyer.

Firstly I will discuss the Seller Stamp Duty (SSD)

IMPORTANT NOTE – It affects only RESIDENTIAL PROPERTY ONLY!

On 13 January 2011, the Government announced the extension of the holding period for imposition of SSD on residential properties from 3 years to 4 years based on new rates. The new SSD rates will be imposed on residential properties which are acquired (or purchased) on or after 14 January 2011 and disposed of (or sold) within 4 years of acquisition, as follows :

  • Holding period of 1 year : 16% of price or market value, whichever is higher
  • Holding period of 2 years : 12% of price or market value, whichever is higher
  • Holding period of 3 years : 8% of price or market value, whichever is higher
  • Holding period of 4 years : 4% of price or market value, whichever is higher

Properties acquired before 20 Feb 2010 will not be subject to SSD.

In the following table, it will be better understood:


Seller’s Stamp Duty Rates

Date of purchase / acquisition

Holding Period

Computation

Between 20 February 2010 and 29 August 2010 (all inclusive)* Within 1 year 1% on first $180,000
2% on next $180,000
3% on remainder,

of the consideration or value whichever is higher

More than 1 year No SSD payable
Between 30 August 2010 and 13 January 2011 (all inclusive)* Within 1 year 1% on first $180,000
2% on next $180,000
3% on remainder,

of the consideration or value whichever is higher

More than 1 year and up to 2 years 0.67% on first $180,000
1.33% on next $180,000
2% on remainder,

of the consideration or value whichever is higher

More than 2 years and up to 3 years 0.33% on first $180,000
0.67% on next $180,000
1% on remainder,

of the consideration or value whichever is higher

More than 3 years No SSD payable
On and after 14 January 2011+ Within 1 year 16% of consideration or value, whichever is higher
More than 1 year and up to 2 years 12% of consideration or value, whichever is higher
More than 2 years and up to 3 years 8% of consideration or value, whichever is higher
More than 3 years and up to 4 years 4% of consideration or value, whichever is higher
More than 4 years No SSD payable
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