The short version: Tenancy in common is a way of jointly owning property where each owner has a distinct share. Unlike joint tenancy, your share doesn’t automatically pass to the other owner when you die.
Why choose it?
You might own different proportions (70/30 instead of 50/50). You can leave your share to whoever you want in your will. It’s common for investment properties, unmarried couples, or friends buying together.
How does it affect tax?
Rental income and capital gains are split according to ownership shares. If you own 60%, you’re taxed on 60% of the profits. This can be useful for tax planning if owners are in different tax bands.
What’s the alternative?
Joint tenancy, where you own the property equally and your share automatically passes to the surviving owner when you die. More common for married couples buying a family home.
Buying property with someone else? Talk to us about structuring ownership tax efficiently.
