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A taxi driver using the objective estimation method has enquired whether they can reduce the capital gains tax arising from the transfer of their licence upon retirement. The DGT has ruled that if the individual continues to carry out the activity after retiring, the transfer is not considered to be motivated by retirement, but rather by the cessation of activity.
Taxi drivers and self-employed individuals using the objective estimation method may lose access to specific tax reductions on capital gains if they do not fully cease their professional activity upon retirement.
The tax team reviews your specific situation.
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