TSEM9230 - Ownership and income tax: legal background: joint ownership - presumption of joint tenancy

Where property is held in the joint names of 鈥楢 and B鈥�, it is presumed to be held beneficially as joint tenants, as described in TSEM9210.

This presumption can be displaced by evidence to the contrary, such as:

  1. A declaration of trust of equal or unequal shares. For example, if there is a valid declaration that the property is held 25% for A and 75% for B.
  2. In the case of real property, there is a restriction in the Land Registry title called a 'Form A restriction'. 聽This restriction is recorded in these terms; "No disposition by a sole proprietor of the registered estate (except a trust corporation) under which capital money arises is to be registered unless authorised by an order of the court". 聽This restriction usually means that there is a tenancy in common instead (TSEM9220).
  3. Notice of severance of the joint tenancy by one of the joint owners.
  4. An act of severance- such as the bankruptcy of one of the owners or one owner taking out a loan secured on the property.
  5. Evidence of a resulting or constructive trust - see TSEM9610-9620.

If there is such evidence, the ownership is as described in TSEM9220 instead of as in TSEM9210.