Working out house tenants in common share for inheritiance tax or probate.

cing0

HMRC's IHTM15082 says the share in a tenants in common house is proportional to the money they put in. So how do you figure out the deceaced share 40 years after purchase with no deeds as its registered at the land registry only showing Form A restriction wording.

RAS

If the property is on the Land Registry, the deeds are irrelevant as registration supercedes them. You should still be able to get copies of the original documents from the Registry.

But the issue of shares when a property is held as tenants in common is not recorded on the Registry. It depends on any agreement signed by both parties at the time they bought as tenants in common or severed the tenancy.

In the absence of any formal agreement, the legal assumption is 50:50 if there are two owners.

Keep_pedalling

As above, unless there is a declaration of trust stating otherwise the assumption is 50/50. HHRC may challenge that if the purchase is recent and the owners are not a married couple or civil partners.

cing0

Thanks for all the replies.
So as long as the purchase was over 20 years ago, 50:50 will likely be uncontested by HMRC.

Keep_pedalling

https://forums.moneysavingexpert.com/discussion/comment/82073531#Comment_82073531

For a married couple or civil partners the length of ownership is irrelevant, for others then, it is the 7 year rule that might come into play.