How does tax apply to transfers between joint tenants?
If a registered ‘fee simple’ ownership of a property is held in joint tenancy, the tax applies to the portion of the interest in the property being transferred. For example, Mary and John are former spouses and own a property as joint tenants. They wish to transfer John’s interest in the property to Charles, with the result that Mary and Charles will now hold the registered fee simple ownership of the property as joint tenants. For the purposes of the Property Transfer Tax Act, Mary’s interest in the property has not changed as a result of the transfer. The application of the tax is determined based on the transfer of a 50% interest in the property from John to Charles. If John and Charles are related (such as father and son), the transfer of the 50% interest from John to Charles may qualify for exemption.
