Buying property as joint tenants or as tenants-in-common or sole name

jezlinho

Hi there, my family are considering purchasing an investment property (for letting) in London. We would like to understand what are the inheritance tax, capital gains tax and income tax considerations of buying the property: 1) as a co-owner in the form of a joint tenancy and 2) as a co-owner in the form of a tenancy-in-common, (with my brother) as opposed to holding the property in my sole name.

Would be grateful for any thoughts on this. Thank you.

getmore4less

Death:
IHT : the value of the share you own is included for IHT.
who gets the share is the other party on joint, will/intestate for the other 2.
CGT : value for future CGT is reset.

Disposal
CGT : assessment at that time based on share and any allowances.

CLAPTON

jezlinho wrote: »

Hi there, my family are considering purchasing an investment property (for letting) in London. We would like to understand what are the inheritance tax, capital gains tax and income tax considerations of buying the property: 1) as a co-owner in the form of a joint tenancy and 2) as a co-owner in the form of a tenancy-in-common, (with my brother) as opposed to holding the property in my sole name.

Would be grateful for any thoughts on this. Thank you.

in general and subject to the full circumstances the 'property ' would suffer less tax if jointly held

-income tax would probably be similar but depends upon other income
-cgt would probably be less on disposal as you each have a cgt allowance of 10,900 assuming you don't normally use it
-IHT would depend but probably less but depends how rich you are

00ec25

if all you want is information try reading it up first

http://www.hmrc.gov.uk/manuals/cgmanual/cg70520.htm

https://www.gov.uk/renting-out-a-property/landlord-responsibilities