Tenants in common for CGT

I'm hoping someone can shed alittle expert advice on this situation.

If an IP that has two parties (family members) on the title and is written as tenants in common but without any mention of % division between the two parties, is it therefore legal to choose who incurs the CGT?
 
as far as I am aware you HAVE to nominate a % when you elect to go tenants in common. If you fail to nominate a % I would believe the property would either be deemed to be 50/50 split or joint tenancy by default. Not 100% on this though, as I haven't come across the situation before.
 
If it is not deemed 'tenants in common' & becomes 'joint tenancy' does that then mean you can choose who incurs the capital gains tax?
 
Joint tenants are automatically 50/50.

To register a title as tenants in common you have to nominate the percentage.

You may have a very old title if it is tenants in common without a percentage, in which case it is almost certainly pre-CGT and therefore CGT does not apply.

NEVER take anything on a forum as "expert advice" - far better to look at views expressed as opinions. For expert advice you need to consult a professional.
Marg
 
You are right on the mark Marg, joint tenants equals 50/50 you cannot choose who will take the capital gain. It must be evenly split.
 
I'm hoping someone can shed alittle expert advice on this situation.

If an IP that has two parties (family members) on the title and is written as tenants in common but without any mention of % division between the two parties, is it therefore legal to choose who incurs the CGT?

You cannot choose shares for tax purposes.

There would be a presumption of equal shares unless you can produce evidence to the contrary.

For instance, it could be argued to be based on the amount contributed by each owner to the purchase price. Or there could be documentary evidence that the person providing the finance intended the other family member to receive a share as a gift.

You need to talk to a Property Law advisor regarding your precise facts.

Cheers,

Rob
 
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