Glossary · UK
What is Tenancy in Common?
A way for co-owners to hold property in distinct, definable shares that can be passed on individually rather than automatically to the other owner.
Full Definition
Tenancy in common is a form of joint property ownership in England and Wales where each co-owner holds a separate, identifiable share, which need not be equal (for example 60/40). It contrasts with a joint tenancy, where owners hold the whole property together and a deceased owner's interest passes automatically to the survivor. Under a tenancy in common there is no right of survivorship: each owner can leave their share by will to whomever they choose, making it popular with unmarried couples, those contributing different deposit amounts, and people undertaking inheritance-tax planning. The split is often recorded in a declaration of trust to avoid disputes. For tax, each owner is generally treated as owning their share, which can affect how rental income, Capital Gains Tax (Annual Exempt Amount GBP 3,000) and Inheritance Tax are calculated. You can switch between tenancy in common and joint tenancy by notice or agreement.