Andy lives in a residential property in Wan Chai (his main home) with rental expense $10,000 per month.

In April 2022, Andy acquired a flat in Tsimshatsui with finance obtained from a local bank. He signed a lease with the following terms with Ms. Wong on 28 April 2022. The landlord is responsible for the repair cost.

1. The lease runs from l May 2022 for two years.
2. Monthly rental: $72,000 per month, payable in advance.
3. Initial premium$96,000 payable on signing the lease agreement
4. Rental deposit: $144,000 payable on signing the lease agreement. As per the lease agreement, the rental deposit is to be used to compensate the landlord any loss of revenue when the tenant defaults in payment of the rent.
5. Rates$6,000 (net of rates concession) per quarter, payable by Andy.
6. Ms. Wong asked for a rent-free period to facilitate a minor repair to the flat. Andy agreed to give a half-month rent-free period from the date the lease started to take effect. The repair cost of $24,000 was paid by Ms. Wong.

During the year ended 31 March 2023, Andy incurred bank mortgage interest of $210,000. A property agency fee for letting the property, equivalent to half of the monthly rental, was also paid on 28 April 2022.

Since l January 2023, Andy has not received any rental payments from Ms. Wong. On 16 May 2023, Andy was advised by the management company that Ms. Wong had moved out without leaving any contact details. The property was left vacant until it was sold on 31 May 2023.

Andy incurred a business loss of $10,000 and $20,000 of his sole-proprietorship secretarial services firm in the year of assessment 2022/23 and 2023/24 respectively.

Required

1. Using the most favorable tax planning, compute the property tax payable by Andy (if any) for each of the years of assessment 2022/ 23 and 2023/ 24. (Note: You should assume that Andy will not elect for personal assessment for the relevant years of assessment.)

2. Please briefly discuss the tax advantages if Andy elected for personal assessment for the relevant years of assessment (The computations for personal assessment is NOT required.)