Joint names with spouse or civil partner
Owner-Managed Businesses
Guidance
The decision to hold a property jointly with a spouse or civil partner has consequences beyond taxation. For example, it may change the position on separation or divorce, or allow creditors of the transferee spouse / civil partner to seize the assets. The wider implications of joint ownership must therefore be considered before a decision is taken.
For a review of extracting profits from a company through rental income payable to couples, see the Husband and wife / civil partners guidance note.
Legal and beneficial ownership
The first step is to establish how the property is currently held. There can be a difference between the legal and beneficial ownership of a property:
- •
the legal owner is the person who has formal legal title to the property. This will normally be recorded by the Land Registry and / or on the property deeds
- •
the beneficial owner has the right to benefit from the property. Beneficial ownership is sometimes known as an 'equitable interest' or 'equitable ownership'.
Where the couple share legal title
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