Mr Chan has a flat worth $5,000,000 and he wishes to transfer it to his ten-year-old son, Francis. As Francis is too young to hold immovable property in his own name, Mr Chan says that he will execute an assignment passing the flat to Mr Lee, and on the same day, Mr Lee will execute a declaration of trust declaring that he holds the flat on behalf of Francis. Upon reaching his 18th birthday, the property will be conveyed to Francis.
Required:
Analyse and determine whether, and if so to what extent, the documents used in the above transaction attract stamp duty under the Hong Kong Stamp Duty Ordinance.
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