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V2643-22 ·27 December 2022 ·consulta-vinculante Medium impact
Tax

Legal and insolvency practitioner fees do not constitute capital losses for Personal Income Tax purposes

A query was raised regarding whether legal fees and insolvency practitioner charges incurred during insolvency proceedings can be deducted as capital losses. The Directorate General of Taxes (DGT) ruled that these expenses do not qualify as capital losses as they are considered consumption expenses.

In 6 key points

How it affects those involved

This ruling clarifies that professional fees related to insolvency proceedings cannot be used to reduce the general tax base through capital loss deductions, as they are classified as personal consumption costs.

Lifecycle

2022-12-27PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

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This analysis is informational only and does not constitute legal advice or create a client-adviser relationship. BM Consulting.
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