Will We Pay Tax on Rental Income from Flat?

Usually, yes you would pay tax on the income, however I would recommend that you check with a taxation specialist to see whether your tied accomodation makes any difference, and also the fact that the property will be your main residence when you retire. 

The tax implications of rental income from a flat will depend on various factors, including your local tax laws, your personal tax situation, and any expenses or deductions related to the rental property.  

Here's a general overview of the typical tax considerations for rental income from a flat: 

1. Rental income - rental income received from the flat is generally taxable as income. You'll need to report this income on your tax return  
2. Expenses and deductions - you may be able to deduct certain expenses associated with the rental property, such as mortgage interest, property taxes, insurance, maintenance and repairs, property management fees, utilities, and depreciation. These deductions can help reduce your taxable rental income  
3. Taxable profit - your taxable rental income is calculated by subtracting deductible expenses from your gross rental income. The resulting amount is your taxable profit from the rental property  
4. Tax rates - the tax rate applied to your rental income will depend on your overall income and tax bracket. Rental income is typically taxed at your marginal income tax rate. 
5. Capital gains tax - if you sell the flat for a profit in the future, you may be subject to capital gains tax on the sale proceeds. The tax rate and exemptions for capital gains tax vary depending on your jurisdiction and the length of time you've owned the property  
6. Tax allowances and reliefs - some jurisdictions offer tax allowances or reliefs for rental income, such as a tax-free allowance for a certain amount of rental income or deductions for certain expenses. Be sure to check if you're eligible for any tax breaks in your jurisdiction  
7. Tax reporting - you'll need to report your rental income and expenses accurately on your tax return. Keep detailed records of all rental income and expenses to support your tax filings  
8. Tax filing deadlines - be aware of the tax filing deadlines in your jurisdiction for reporting rental income. Missing deadlines can result in penalties or interest charges  

It's essential to consult with a tax advisor or accountant who is familiar with the tax laws in your jurisdiction to ensure compliance and maximize any tax benefits available to you. They can provide personalised advice based on your specific circumstances and help you navigate the complexities of rental property taxation.