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The applicant inquired whether a reduction in Inheritance Tax could be applied to shares in a company inherited from her mother. The Directorate General for Taxes (DGT) ruled that this is not possible because the mother does not meet the requirements for exemption from Wealth Tax.
This ruling reinforces the strict link between Wealth Tax exemptions and the eligibility for family business reductions in Inheritance Tax, limiting tax planning opportunities for heirs of non-exempt assets.
The tax team reviews your specific situation.
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