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V2402-17 21 September 2017 · SG de Tributos Locales Criterion in force
OTRO · iivtnu

Legatee must pay tax on the entire property in the I-VLT, even when compensating other heirs in cash

A query was raised regarding whether a legatee of a property should pay capital gains tax on the percentage of the legacy or on the entire asset. The DGT ruled that, as the property is awarded in its entirety to the legatee, she is the taxable person for the whole of the land.

The question raised

Whether the taxpayer would be taxed on the Tax on the Increase in Value of Urban Land for the percentage of the property strictly corresponding to the legacy, and the rest of the heirs for the percentage of the property corresponding to them, or whether the taxpayer would be taxed for the entirety of the property.

The DGT's ruling

The taxpayer for the IVTNU in gratuitous transfers is the person who acquires the land. If the urban property is allocated in its entirety to the legatee according to the partition of the estate, she shall be the taxpayer for the transfer of the ownership of the land, regardless of whether she must compensate the other heirs in cash for the excess received.

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