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V0135-17 23 January 2017 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · planes de pensiones

40% pension plan reduction applicable to capital from deceased relatives' plans without affecting future retirement reduction

The inquirer asks whether receiving capital from pension plans following the death of their uncles prevents them from applying the 40% reduction upon their own future retirement. The Directorate General for Tax (DGT) rules that these involve different participants and contingencies, meaning the future right remains unaffected.

The question raised

Application of the 40 percent reduction to the capital received from each of the pension plans due to the contingency of the death of their uncles and aunts, without this affecting the right to apply the reduction to the capital received in the future, due to the contingency of retirement, from the pension plans in which they are a participant.

The DGT's ruling

The 40 percent reduction applies to lump-sum benefits for the portion corresponding to contributions made until December 31, 2006. As these involve different participants and contingencies, the application of this reduction due to the death of the uncles and aunts does not prevent the application of the reduction in the future for the contingency of retirement from the taxpayer's own plans. The reduction due to death is applied independently to the set of plans of each deceased participant.

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