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A taxpayer inquired whether funds contributed to a minor's protected assets for a disability could be used for educational expenses in the same year without losing tax relief. The Directorate-General for Tax (DGT) ruled that spending money to meet essential needs does not constitute a disposal of assets, provided the effective constitution of the assets is maintained.
This ruling provides clarity for taxpayers managing protected assets for persons with disabilities, confirming that essential spending does not trigger the loss of tax benefits.
The tax team reviews your specific situation.
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