Deduction for Home Loan Interest. Taxpayers can claim deductions for mortgage interest (HLI) under salaries tax and personal assessment.
This short article addresses eligibility for write-offs, situations under which you are able to claim, how deductions are allowed to married people, the time maximum on revoking their declare, and also the type of support paperwork you will need to hold .
Eligibility for write-offs
The HLI you spend try allowable from your own internet assessable earnings under wages tax or out of your full money under personal evaluation. Anyone whose earnings are chargeable to income tax during the standard rates can be eligible to a deduction.
All the preceding conditions need to be pleased before a deduction was given:
you’re owner regarding the home (either as a sole manager, a joint tenant or an occupant in accordance) and possession is by mention of the authorized proprietor for the home as shown in records from the Land Registry;
the home are an independent rateable unit according to the Rating Ordinance: definitely, it’s situated in Hong Kong;
the dwelling is utilized completely or to some extent as the place of residence around of examination (in the event that dwelling is to some extent put while the place of residence, the quantity of interest allowable are limited consequently);
you only pay HLI during the 12 months of examination on that loan for purchase on the home;
the mortgage try secured by a mortgage or cost on top of the home or over virtually any property in Hong-Kong; and