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The inquirer asks whether the 40% reduction provided for in the twelfth transitional provision can be applied across two different tax years when redeeming two pension plans following a recognised disability. The Directorate-General for Taxes (DGT) responds that it is possible to apply the reduction to the portion of contributions made up to 2006 for each plan, provided they are received within the legal timeframe.
The tax team reviews your specific situation.
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