Johnny and Jenny, a married couple who had the following income and expenditure for the year ended 31 March 2021:

Johnny

Johnny has been employed by a company in Hong Kong for years. For the year ended 31 March 2021, Johnny's employment income amounted to HK$360,000, out of which MPF contributions of HK$18,00 was deducted. Johnny also made donations of HK$20,000 to certain approved charities under his own name.

Johnny has also been running a sole-proprietor business since 2015. The business had assessable profits of HK$150,000 for the year ended 31 March 2021. According to the tax records, the business had an unutilized adjusted loss of HK$50,000, carrying forward to the year of assessment 2020/21.

Johnny holds property for lease, which was acquired under mortgage for years. At the year-end of 31 March 2021, the net assessable value of the leased property amounted to HK$330,000. Mortgage loan interest paid in respect of the leased property amounted to HK$180,000.

Jenny

Jenny’s employment income for the year ended 31 March 2021 was HK$180,000, out of which MPF contributions of HK$9,000 was deducted. Jenny also made donations of HK$80,000 to certain approved charities under her own name.

Jenny operates a partnership business with her friends in trading communication devices. For the year ended 31 March 2021, Jenny shared the partnership's loss of HK$230,000.

Johnny and Jenny jointly elected to be assessed under personal assessment in the year of assessment 2020/21. Except for married persons’ allowance, Johnny and Jenny were not entitled to other personal allowances in the year.

Required:

1. a) Compute the tax payable by Johnny and Jenny under personal assessment for the year of assessment 2020/21, ignoring tax rebate. 

2. b) Explain to the couple how they could make use of Jenny’s share of the partnership’s loss in order to minimize their overall tax exposures.