In April 2017, Mr Cheung acquired a flat in Kowloon City with finance obtained from a local bank. He signed a lease with the following terms with Ms Lau on 28 May 2017:

1)The lease runs from 1 June 2017 for two years.

2) Monthly rental: $55,000, payable in advance

3 )Initial premium: $30,000, payable on signing the lease agreement

4 )Rental deposit: $110,000, payable on signing the lease agreement. In the lease agreement, the rental deposit is to be used to compensate for 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 Mr Cheung

6 )Ms Lau asked for a rent-free period to facilitate a minor decoration to the flat. Mr Cheung agreed to give a half-month rentfree period from the date the lease started to take effect. The repair cost of $50,000 was paid by Ms Lau.

During the year ended 31 March 2018, Mr Cheung incurred bank mortgage interest of $108,000. A property agency fee for letting the property, equivalent to half of the monthly rental, was also paid on 28 May 2017.

Since 1 January 2018, Mr Cheung has not received any rental payments from Ms Lau. On 16 May 2018, Mr Cheung was advised by the management company that Ms Lau had moved out without leaving any contact details. The property was left vacant until he let his son move in as a new wedding home from 1 January 2019.

Required

Compute the property tax payable by Mr Cheung for each of the years of assessment 2017/18 and 2018/19.