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V0866-14 28 March 2014 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
ISD · reducción por empresa familiar

Family business tax relief is not lost if a pharmacy is sold and proceeds are reinvested in rural land, provided acquisition value is maintained

A query was raised regarding whether selling an inherited pharmacy and reinvesting the proceeds into rural land for agricultural use would void the family business tax reduction. The Directorate General for Taxes (DGT) ruled that the reduction is not lost, provided the acquisition value upon which the benefit was applied is maintained.

The question raised

Whether the right to the reduction applied is lost in the event of the sale of the pharmacy and the reinvestment of the amount obtained in a rural estate for agricultural exploitation by the heir.

The DGT's ruling

The law prohibits acts of disposal that may result in a substantial reduction in the acquisition value. The disposal of the pharmacy with immediate reinvestment of the amount in the acquisition of a rural estate does not affect the holding requirement, provided that the acquisition value for which the inheritance reduction was applied is maintained.

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