Question about non-residential property expenses in Hong Kong

My wife and I are receiving rental income from a non-residential property in Hong Kong. We have the following expenses: 1) Management fees paid monthly to the management company. 2) Rates and government rent paid every three months to the Hong Kong government. 3) A one-off leasing commission paid to the agent for arranging a new tenant for our property. Can all of the above expenses, totaling £2396, be included in our property expenses? Also, should I report £1,198 (50% of £2396) as my share since I own 50% of the property? In addition, my wife has mortgage on this non-residential property, can her mortgage interest included in her property expenses? Thank you so much!

Hi ,
 

Thanks for your question. As per PIM4702, a section is contained titled tax credit relief which may assist within your query as taxation can apply in both states. In terms of expenses incurred, you may claim for the management fees paid to the management company, rates and government rent paid every three months as this is a requirement to be able to rent out the property. In relation to question 3, if the leasing commission paid covers a first letting or sub-letting for more than one year then this would be deemed of a capital nature, so not allowable, PIM2120 refers: PIM2120 - Deductions: main types of expense: legal and professional costs     & : PIM4702 - Rent from property outside the UK: Income Tax (IT)  . Thankv you .