Skip to content
V1100-14 ·15 April 2014 ·consulta-vinculante Medium impact
Tax

Repurchase of subordinated debt generates investment income, while share sales result in capital losses

The taxpayer inquires about the tax treatment of converting subordinated debt and preferred shares into equity, and the subsequent sale of these shares to the FGD. The Tax Agency determines that the repurchase of the original securities generates investment income, whereas the sale of the shares results in a capital loss.

In 6 key points

Lifecycle

2014-04-15PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

Does this provision affect you?

The tax team reviews your specific situation.

Talk to the tax team
This analysis is informational only and does not constitute legal advice or create a client-adviser relationship. BM Consulting.
Email
Contact