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V0054-22 14 January 2022 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
ISD · adquisición mortis causa

Contributing inherited shares to a holding company does not breach maintenance requirements if the acquisition value is preserved

The taxpayer asks whether contributing shares received through inheritance to a holding company breaches the duty to maintain the acquisition for the purpose of applying a 95% reduction in Inheritance Tax. The DGT rules that the relevant factor is preserving the acquisition value rather than the nature of the asset, provided no transactions are carried out that substantially diminish said value.

The question raised

Whether the non-monetary contribution to holding companies of shares acquired 'mortis causa' as a consequence of the death of their parents constitutes a breach of the maintenance requirement provided for in the legislation approved by the Autonomous Community of Madrid.

The DGT's ruling

The non-monetary contribution of shares acquired 'mortis causa' to a holding company does not constitute a breach of the requirement to maintain the value of the acquisition. The relevant factor for retaining the reduction is that the value for which the reduction was applied is maintained, regardless of the nature or status of the asset. However, acts of disposal or corporate operations that could lead to a substantial reduction in the value of the acquisition must be avoided.

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