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V1001-14 8 April 2014 · SG de Tributación de las Operaciones Financieras Criterion in force
IRPF · rendimientos del capital mobiliario

Purchase of preferred shares generates capital gains in income tax

The tax treatment of the FROB's purchase of preferred shares and subordinated debt, subsequent sale of shares to the FGD, and the effect of an arbitral award is examined. Hacienda determines that the purchase generates capital gains and the sale of shares results in capital gains or losses.

The question raised

Tax treatment of such operations in:

The DGT's ruling

The repurchase of securities generates income from movable capital based on the difference between the repurchase price and the acquisition value. This income is attributed to the period in which it becomes due and constitutes savings income. The subsequent transfer of the shares received generates a capital gain or loss according to the difference between their transfer value and their subscription value. In the event of an arbitral award declaring nullity, income from movable capital will be generated based on the difference between the amount fixed in the award and the initial acquisition value.

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