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A query was raised regarding whether receiving a life annuity after serving in a management role prevents the application of the 95% reduction on the donation of shares. The DGT ruled that the requirement is met provided the donor effectively ceases their duties and stops receiving remuneration for performing them.
This ruling provides legal certainty for business owners planning succession, confirming that life annuities do not disqualify them from family business tax benefits, provided they truly relinquish their management roles.
The tax team reviews your specific situation.
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