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V1458-22 20 June 2022 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · pérdida patrimonial

Capital losses from property destruction due to volcanic eruption to be included in the general tax base

A taxpayer inquired whether capital losses resulting from the destruction of property due to the volcanic eruption in La Palma should be included in the general tax base for Personal Income Tax (IRPF). The Directorate General for Taxes (DGT) clarified that public aid and compensation from the Insurance Compensation Consortium are considered as a whole and are exempt subject to certain limits.

The question raised

Whether the loss of assets resulting from such destruction must be included in the general tax base of the Personal Income Tax (IRPF).

The DGT's ruling

Public aid for the destruction or repair of assets due to volcanic eruption is exempt. Indemnities from the Insurance Compensation Consortium are considered part of said aid, therefore the combined amount is exempt. If the aid is less than the loss of assets, the negative difference may be included in the tax base. The resulting loss is included in the general tax base as it does not derive from a transfer.

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