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V1246-18 11 May 2018 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
ITPAJD · actos jurídicos documentados

Division of estates and separation of co-owners subject to Stamp Duty but not capital gains if shares are respected

Consultants seek to divide two inherited properties held in co-ownership through grouping and segregation, allocating one to a single co-owner. The DGT rules that grouping and segregation operations are subject to Stamp Duty (AJD) and that the separation of a co-owner does not constitute a transfer if their share is respected, thus not generating capital gains for Income Tax (IRPF) or Wealth Tax (IIVTNU).

The question raised

Taxation of the operations intended to be carried out.

The DGT's ruling

Operations involving the grouping and segregation of estates are taxed under the variable rate of Stamp Duty (AJD) as there is no transfer of ownership. The separation of a co-owner through the adjudication of an asset in payment of their share does not constitute a transfer of assets, but rather a transformation of their right, which is also subject to Stamp Duty (AJD). For Personal Income Tax (IRPF) purposes, there is no change in assets or capital gains if the adjudication maintains the proper proportion to the ownership share. For the Inheritance and Gift Tax (IIVTNU), the adjudication of assets from a community constituted by mortis causa acts does not trigger the accrual of the tax.

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