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Under separate taxation, you will each be taxed income tax on your share of the profit from property income, respectively. It would not make any difference whether the property is registered as Joint tenants or Tenants in Common.
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ok, thanks. so is it correct to say that under 'Joint Tenants' both of us will automatic share 50% of the property and hence 50% of the income, while under 'Tenants in common' we can decide what percentage share of the property hence income between us?
under 'Joint Tenants' can we put 100% income to one person and 0% to another person?
Charles, thank you for your reply.
These terms have more relevance when it comes to distribution of estate in the event of death of one of the partners.
For income tax purposes, HMRC normally treats income from property held in joint names as if it belonged to you in equal shares and tax each of you on half of the income.
If you wish this 50/50 split to be any different, then you make a declaration of beneficial interest by completing form 17.
More information on this can be found here