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V0425-22 3 March 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · estimación objetiva

Capital gains tax reduction applicable to the sale of a taxi licence due to permanent disability

A person receiving a permanent disability pension has enquired whether they can apply the reduction provided for in the seventh additional provision of the Personal Income Tax Law (LIRPF) when selling their taxi licence. The Directorate General for Taxes (DGT) has ruled that this is possible, provided that the income is determined via the objective estimation method and the transfer is a direct consequence of the disability.

The question raised

Whether, upon transferring the auto-taxi license, the taxpayer could benefit from the reduction of capital gains provided for in the seventh additional provision of the Personal Income Tax Law.

The DGT's ruling

To apply the reduction for the transfer of intangible fixed assets (such as the license), the taxpayer must determine their yield using the objective estimation method. The transfer must be motivated by permanent disability, retirement, or cessation due to restructuring, or transferred to relatives up to the second degree. If the holder continues to carry out the activity following the disability, the transfer would not be motivated by said cause, but rather by the cessation of activity, which would prevent the reduction unless another legal cause applies.

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