Base Cost of Jointly Owned Property Upon Death

Base Cost of Jointly Owned Property Upon Death of One Owner

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Going round in circles with what should be a simple question.

Father and Son purchase a property.  Father subsequently passes away and Son now owns 100%.

Am I right in thinking that:

If the property was owned as "tenants in common" - i.e. 50% each, then the Son would have a base cost of 50% of the original cost plus 50% of the value at the date of the father's death (the value entered on the probate form for jointly owned assets) as Dad's half would have to be passed to him via the will.

If the property was owned as joint tenants (and title therfore passed to the Son without the need for a will) his base cost would be the original purchase price.

Many thanks

Replies (4)

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By Tax Dragon
06th Mar 2019 17:30

Either way, dad had an asset which he disposed of on death, so it's the same answer whichever.

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By Marion Hayes
06th Mar 2019 18:15

No.
50% original cost and 50% probate irrespective of whether there is a different kind of tenancy.

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Replying to Marion Hayes:
By penelope pitstop
06th Mar 2019 23:26

Agree with Marion Hayes.

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By Tax Dragon
07th Mar 2019 07:07

Probate value being the value of the asset for IHT purposes. I suspect where your circle of confusion began was in thinking that, if the asset doesn't pass under the Will, it's not liable to IHT.

As I said, either way, Dad has an asset.

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