Tenancy in Common (TIC)
- Introduced in the Law of Property Act 1925 under section 34(2), this is not strictly a rental term.
- It is applied to rental agreements involving joint tenancies,
- Few seem to know about it and yet fewer understand it's complexities.
- Most discover it at the wrong end of the equation; when it is too late in the rare case where it affects you negatively!
- It is a means of dividing ownership into portions:
- equal or unequal shares,
- between two or more people.
- It is a shared tenancy with fixed shares in ownership.
- It is used to allocate portions of ownership impacting tax calculations like
- Capital Gains tax,
- Inheritance Tax and even
- Revenue tax.
- It also affects distribution of jointly owned property, both:
- before and
- after death,
- affecting survivor(s) and beneficiaries.
- To understand TiCs it is ideal to compare a Joint tenancy before returning to TiCs.
Published: 11 November 2013
Last Updated: 17 November 2021