Joint Tenancy vs Tenants in Common

Updated 16 August 2026 6 min read

How you own a property is one of the most consequential decisions in inheritance planning, yet most couples never think about it. The difference between a joint tenancy and tenants in common decides who inherits your share of the home, whether your children receive anything, and how the residence nil-rate band applies. This guide explains the two structures and when each makes sense.

The Two Forms of Joint Ownership

There are two ways to own property jointly in England and Wales.

Joint Tenancy

Under a joint tenancy, you and the other owners each own the whole property together. There are no separate shares. The defining feature is the right of survivorship: when one owner dies, their interest passes automatically to the surviving owner(s).

The property does not form part of the deceased’s estate and is not governed by a will
It does not go through probate
The survivors inherit automatically, whatever the will says
You cannot leave your interest to anyone else while the joint tenancy exists

Tenants in Common

Under a tenancy in common, each owner holds a distinct share of the property. The shares can be unequal, and there is no right of survivorship.

Each owner’s share is part of their estate on death
It passes according to their will or the intestacy rules
It is dealt with through probate
An owner can leave their share to anyone they choose

What This Means for Inheritance Tax

For a married couple or civil partners, the inheritance tax difference between the two structures is usually small on the first death, because assets passing to a spouse are exempt. But the choice matters more than most couples realise.

Joint Tenancy and the Survivorship Route

With a joint tenancy, the home passes automatically to the surviving spouse. The residence nil-rate band is not used on the first death, and the survivor inherits the deceased’s unused allowances, giving the couple a potential combined allowance of up to £1 million. The full RNRB is preserved for the second death. This is simple and usually tax-efficient for a first marriage.

Tenants in Common and Flexibility

With tenants in common, each spouse can leave their share of the home to whoever they wish. Common reasons to choose this include:

Leaving a share of the home to children from a previous relationship
Placing a share into a life interest trust so the surviving spouse can live in the home while the capital is protected for the children
Protecting a share from care home fees
Balancing the estate so both nil-rate bands are used

Passing a Share to Someone Other Than a Spouse

Where a share passes to someone other than a spouse or civil partner, the inheritance tax treatment changes:

The share is included in the deceased’s estate at its market value
It is only covered by the nil-rate band, not the spousal exemption
If it passes to a direct descendant and it is the family home, the residence nil-rate band can apply
If it passes to anyone else, such as a sibling or an unmarried partner, the RNRB is not available

This is why tenants in common with an unmarried partner can be a problem: a half-share of the family home left to an unmarried partner is fully chargeable, and no RNRB applies.

Severing a Joint Tenancy

You can change a joint tenancy into a tenancy in common at any time, through a process called severance. A joint tenant can sever their share unilaterally, without the other owner’s consent, by giving a written notice. The change should then be reflected at the Land Registry. This is how a married couple can protect a share of the home for children from an earlier relationship after remarrying.

Going the other way, from tenants in common back to a joint tenancy, requires the agreement of all the owners.

The Capital Gains Tax Position

Neither joint tenancy nor tenancy in common triggers capital gains tax on death, because death is not a capital gains tax disposal. Whatever structure you use, the property is revalued at the probate value on death, and the beneficiaries take the asset with that uplifted base cost. This is covered in more detail in our guide to capital gains tax on inherited property.

Which Should You Choose?

There is no single right answer, but the practical guidance is straightforward:

Joint tenancy suits a couple in a straightforward first relationship who want the home to pass to each other automatically, with no complications.
Tenants in common suits second marriages, couples who want to protect a share for children from a previous relationship, people who want to use trusts, and unmarried couples who want to control exactly where their share goes.

If you hold your home as joint tenants and want more control, speak to a solicitor about severing the tenancy. For a fuller picture of how spousal transfers and trusts interact with property ownership, see our guides on marriage and civil partnerships, life interest trusts and inheritance tax on the family home.

FAQ

What is the difference between joint tenancy and tenants in common?

Under a joint tenancy, the owners hold the property together and the survivors automatically inherit on a death, regardless of the will. Under a tenancy in common, each owner holds a distinct share that passes under their will or the intestacy rules.

Can I leave my share of the house to my children if I own it as joint tenants?

No. Under a joint tenancy, your interest passes automatically to the surviving owner. To leave your share to your children, you need to hold the property as tenants in common.

How do I change a joint tenancy to tenants in common?

A joint tenancy can be severed unilaterally with a written notice, which should then be registered at the Land Registry. Once severed, each owner holds a distinct share they can leave by will.

Does joint ownership affect the residence nil-rate band?

Yes. The RNRB can apply where the family home passes to direct descendants. A home passing to a surviving spouse on the first death preserves the allowance for the second death, while a share passing to anyone other than a direct descendant (such as an unmarried partner) is not covered by the RNRB.

Is there inheritance tax between joint tenants?

For married couples and civil partners, no, because the spousal exemption applies. For other joint owners, the deceased’s share is included in their estate and can be subject to inheritance tax if the estate exceeds the nil-rate band.

Is there capital gains tax when a jointly owned property passes on death?

No. Death is not a capital gains tax disposal. The property is revalued at probate value, and the beneficiaries take it with that higher base cost.

Inheritance Help Editorial Team

The Inheritance Help editorial team researches and explains UK Inheritance Tax in plain English. Content is reviewed regularly to reflect the latest legislation.

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