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HMRC internal manual

Capital Gains Manual

From
HM Revenue & Customs
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Land: joint tenants

The major difference between a tenancy in common and a joint tenancy is that a joint tenant is not the absolute owner of a fractional share in the land. As a result, on the death of a joint tenant, his or her interest in the land passes to the surviving tenant or tenants, rather than to the personal representatives of the deceased.

In contrast to tenants in common, a joint tenancy can only exist where the tenants have equal interests in the land and where those interests were acquired at the same time.

Furthermore, on the death of a joint tenant, his or her interest in the land passes to the surviving joint tenants; it cannot be passed by will. Therefore such an interest is not an asset which the deceased was competent to dispose of and as such would not be deemed to be acquired by the surviving tenant, or tenants, under the normal rule in TCGA92/S62 (1) (see CG30330+). Notwithstanding this however, TCGA92/S62(10) specifically provides for a share in an asset held by a joint tenant to come within TCGA92/S62. As a result such interests benefit from the provisions of TCGA92/S62 (1) deeming

  • there to be no disposal by the deceased, see CG30330

and

  • the acquisition by the personal representatives or legatees to be at probate value, see CG30730.