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V1455-22 20 June 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · cláusula suelo

Deduction for main residence must be regularised if floor clause refunds are deposited into account rather than used to repay principal

A taxpayer inquired whether funds received from a floor clause refund, which were deposited into their loan-linked account instead of being used to directly amortise the principal, must be regularised. The DGT ruled that, as the entity did not direct the funds towards reducing the principal, the amounts unduly deducted must be added back to the net tax liability.

The question raised

Having applied the deduction for investment in the primary residence regarding the amount returned, inquiry is made concerning the regularization of the situation, taking into account that the refund of the excess paid due to the application of the floor clause will be applied to the amortization of the capital.

The DGT's ruling

The regulations exclude the regularization of deductions only when the financial institution allocates the amounts directly to reduce the principal of the loan. If the amount is deposited into the taxpayer's account without such direct amortization of the capital occurring, the taxpayer must add to their state and regional net tax liability the amounts unduly deducted in non-prescribed fiscal years. This addition is made without including late payment interest, pursuant to Article 59 of the Personal Income Tax Regulations.

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