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  • Tax

    Tenants In Common vs Joint Tenants

    I have number of BTL properties held in tenants in common and some as joint tenants with my wife. All rental income is split equally between us. I’m thinking of changing all the properties now to joint tenants so in the event of one of us, if God so wishes, leaves our mortal coils the transfer would be made easier and would escape the expensive and time consuming probate process.  Or is there a better way of doing it?

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    I'm not a tax expert so not advice, but I dont think there is any complication if you intend to leave everything to the surviving spouse.

    As joint tenants, you both own the complete property so I think it automatically goes to the surviving spouse 

    As tenants in common however split, you can both decide independently where your share goes, to the other spouse or elsewhere. Just leave your respective shares to each other and make sure your intentions are clear should you go to the great estate agent in the sky together.


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    You will want to go through the probate process anyway so that ownership of other assets is clear. You are right that the law of survivorship means that assets pass to the survivor and avoid the probate process. It’s still subject to IHT but I suspect that your situation means the inter-spousal exemption will apply,

    The impact is really only that you will automatically have your jointly owned income split equally which may not be the most income tax efficient.
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    Chartered Accountant, Tax Advisor and Mortgage broker

    (and BTL portfolio owner)

    stuart@johnsonsca.com

    02039077022