Tenants in Common, Percentage Ownership of Property

JointOwner

I have no record of the share of "Percentage Ownership" on a property I own with my daughter as "Tenants in Common"
I have checked with Land Registry and they do not require or keep records on the percentage of ownership of properties held as Tenants in Common.
I have checked with the Inland Revenue and they informed me they do not hold details of the percentage ownership of properties held as Tenants in Common.
The property was purchased 16 years ago and I have no record of the solicitor used to do the conveyancing.
Please does someone know where the Percentage Ownership is kept/registered for properties held as Tenants in Common.
I am reviewing my estate Inheritance tax liabilities and assume that my estate would only include my share percentage of the property value and not my daughter's percentage share.
Please does anyone know if this assumption regarding the percentage of the property value and inheritance tax is correct.
Thank you.

Olinda99

It is not recorded anywhere it is assumed 50-50

If you want different, you have to draw up a declaration of trust stating eg 70-30 or whatever

In the absence if one it is 50-50

Yes for IHT assume 50% of house value (or whatever DOT says if there is one)

tacpot12

This raises the question as to whether the Deed of Trust can be setup to record a historical arrangement. This is a question for the solicitor that you engage to create the Deed of Trust. 

CalvinHobs

I recently submitted an IHT return to HRMC (form IHT400) where I included my late partner's share of the property we owned as Joint Tenants. One of the supporting forms I had to complete was IHT404 - Jointly owned assets. HMRC did not ask for proof of her share of the property. I realise shares of a property owned as Tenants in Common can be divided differently, i.e. where the co-owners did not contribute 50/50 to the purchase. I imagine, if someone submitted an IHT404 to HMRC stating the deceased owner's share of a property having two co-owners as significantly lower than 50%, HMRC may well question it.

There is no central database to record how properties are shared between co-owners. The mechanism to record the shares of jointly owned property is a Deed Of Trust which you can have drawn up by a solicitor. This does not have to be made when the property was originally purchased - so you could have one drawn up now. If, at some future date,  HMRC were to ask your daughter for evidence of your share of the property then she could produce the Deed of Trust.

Presumably you are already aware of the IHT nil rate band (NRB) of £325,000 for an estate? Also, the Residence Nil Rate Band (RNRB) of £175,000 as your share the property would be inherited by your daughter?

If you have not already done so, in your will you should state you are leaving your share of the property to your daughter. Unlike with Joint Tenants, the deceased's share of Tenants in Common does not automatically transfer to the surviving co-owner. 

CalvinHobs

When completing the IHT forms for my late partner's estate, I learned something which might be applicable to your situation...

Where IHT is due on an estate which includes the deceased's main residence and this was owned jointly, HMRC will apply a discount of 10% to their share. Apparently, this is due to the complexities involved in selling a jointly owned property compared to a property where the deceased owned it in their sole name.

See "How to value joint property" on pages 24 and 25 of this guide - :
IHT400 Notes - Guide to completing your Inheritance Tax account

The deceased had to be living in - or have a right to live in - the property at the time of their death. So, for example, if they were in hospital or temporary care at the time of their death, the 10% discount would still apply.

Additionally, I discovered that if the property is also the main residence of the other co-owner, HMRC will increase the discount to 15% - although this is not explicitly stated in the IHT400 guide. I found out about it on this website:

The one higher discount that is always agreed is for co-ownership of residential property, when both owners have the right to live there. HMRC always accept 15% here. This goes back to the 1982 Lands Tribunal case of Wight.

I believe these discounts apply to a jointly-owned property whether it is owned as Joint Tenants or Tenants in Common.

Keep_pedalling

After 16 years it is a bit late to make a deed of trust. Who is living in the house?

Would your estate even be in IHT territory?