A joint tenant’s share passes automatically to the surviving owner or owners when they die, whatever their will says. A tenant in common’s share passes under their will or, if there is no will, under the intestacy rules. Either way the share counts in the estate for Inheritance Tax; the form of ownership decides who receives it, whether exemptions apply, who bears the tax and how much room there is to plan.

What is the legal difference between the two?

In England, Wales and Northern Ireland there are two ways to own property jointly. HMRC summarises them at IHTM15082.

Joint tenants Tenants in common
Size of shares Identical, equal interests in the whole Can be unequal, for example a quarter and three quarters
On death Passes by survivorship to the other owners Passes under the will or intestacy
Can be left by will No Yes
Changing it Any owner can sever, even without agreement All owners must agree to become joint tenants

GOV.UK’s guidance on joint property ownership puts it plainly: as joint tenants “you cannot pass on your ownership of the property in your will”. Joint bank and building society accounts are also usually held as joint tenants (IHTM15082).

Scotland works differently. Each owner’s share normally passes under their own will, but a title in favour of two people “and the survivor” creates a survivorship destination, so the survivor takes the whole. HMRC notes at IHTM15050 that either owner can defeat the destination by disposing of their share during their lifetime.

If a share passes outside the will, is it still taxed?

Yes. There is no special Inheritance Tax regime for joint property. IHTM15012 explains that the ordinary rules apply to each owner’s beneficial entitlement, and section 5 of the Inheritance Tax Act 1984 makes that entitlement part of their estate. A share passing by survivorship is included in the estate and on the IHT400 (schedule IHT404 covers jointly owned assets) even though the executors never control it.

The size of the share also follows the form of ownership. For joint tenants each owner normally has an equal share of the whole, so one of three owners has a third (IHTM15031). For tenants in common the share is usually the one stated in the title or a declaration of trust (IHTM15032). Where a mortgage is secured on the property, the deceased’s share of the value is reduced by their share of the debt (IHTM15044). How the share is then valued, including the joint ownership discount, is covered in valuing property for probate.

How does the form of ownership change the exemptions?

Spouse or civil partner exemption

Where a married couple or civil partners are joint tenants, the deceased’s share passes to the survivor and the spouse exemption in section 18 will usually apply (IHTM15031). Where they are tenants in common, the exemption depends on what the will or intestacy does with the share (IHTM15032). A half share left to children is chargeable, and the related property rule in section 161 then values it as half of the whole without a joint ownership discount (IHTM09739).

Residence nil rate band

The additional threshold for a home requires the home to be “inherited” by direct descendants. Section 8J defines inheriting as a disposition “whether effected by will, under the law relating to intestacy or otherwise”, and HMRC confirms at IHTM46014 that this includes property passing by survivorship. So a parent’s share of a home owned as joint tenants with an adult child can still count; see the residence nil rate band.

Grossing up

A share passing by survivorship is treated as a separate fund from the free estate for grossing up calculations (IHTM15031), whereas a tenant in common’s share is part of the free estate (IHTM15032). This affects the arithmetic in estates that mix exempt and chargeable gifts.

Who pays the tax on a joint share?

The executors are liable for tax on property that was not in a trust, which includes a share passing by survivorship (section 200(1)(a)). But section 211(1) treats the tax as an estate expense, paid from residue, only where the UK property vests in the personal representatives. A survivorship share vests directly in the surviving owner, so the tax attributable to it falls on that share. If the executors pay it, section 211(3) lets them recover it from the survivor.

GOV.UK’s guidance on inherited property reflects this: a surviving joint tenant may have to pay Inheritance Tax if the estate is over the threshold and the estate does not pay. For tenants in common, the executor should pay out of the estate, and the beneficiary is asked only if the estate cannot or does not pay.

How do owners switch from one form to the other?

Changing from joint tenants to tenants in common is called severance. GOV.UK says any owner can do it without the others’ agreement, by serving a written notice of severance and applying to HM Land Registry on form SEV for a “form A restriction”. There is no fee. Changing back from tenants in common to joint tenants needs every owner’s agreement and a new or updated trust deed.

GOV.UK also warns that the type of ownership can change without an owner realising, for example if another owner becomes bankrupt. Couples who have separated, or who want each share to go to their own children, often sever so that each share can be left by will.

Can a share that passed by survivorship be redirected after death?

Yes, within limits. Section 142 allows a written variation made within two years of death to be treated as made by the deceased, and it applies to dispositions “whether effected by will, under the law relating to intestacy or otherwise”, which takes in survivorship. HMRC’s guidance at IHTM35092 adds a practical warning: if the variation only deals with property under the will and there is not enough of it, any survivorship property used to fund the new gifts is a lifetime gift by the survivor unless the variation expressly redirects it. The detail is in deeds of variation.

How does this work for an unmarried couple?

Illustration only. Anna and Ben are not married. They own a house worth £500,000 as joint tenants, and Anna’s will leaves everything to her daughter from an earlier relationship.

  • As joint tenants: Anna’s half passes to Ben by survivorship, and her will does not reach it. Her share is still in her estate. Under the GOV.UK approach for joint tenants who are not spouses it is valued at £250,000 less 10%, which is £225,000. No spouse exemption is available, and the tax on that share falls on Ben’s inheritance.
  • As tenants in common in equal shares: Anna’s half passes under her will to her daughter. The share is still chargeable, but because the daughter is a direct descendant the residence nil rate band may be available, and the tax is borne by the estate as a whole.

The tax is not necessarily lower either way. What changes is who ends up with the property and who bears the bill.

What mistakes come up most often?

  • Assuming the will governs everything. Check the title and any declaration of trust before relying on it; GOV.UK lists the property transfer, lease or trust deed as the places to look.
  • Leaving survivorship assets off the estate valuation because they never pass through the executors.
  • Claiming a joint ownership discount between spouses.
  • Treating a joint bank account opened for convenience as split equally. GOV.UK says to use the amount the person actually owned.
  • Forgetting that unmarried joint owners get no spouse exemption, so the survivor may face a bill on a share they assumed was theirs already.

For the income tax side of jointly owned rental property, see jointly owned rental property tax.

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Reviewed by Christine Anderson, Broker, Solar Protect. Last reviewed 8 October 2026. Part of Accountapedia, the Solar Protect guide to UK tax and accounting. This page is general information, not personalised advice.