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V2556-23 25 September 2023 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · patrimonio protegido

Protected assets may be used for essential needs without losing income tax relief

A taxpayer inquired whether funds contributed to a minor's protected assets for a disability could be used for educational expenses in the same year without losing tax relief. The Directorate-General for Tax (DGT) ruled that spending money to meet essential needs does not constitute a disposal of assets, provided the effective constitution of the assets is maintained.

The question raised

Whether the money contributed may be used to cover expenses for the secondary education of the minor in an educational center with personalized attention in the same year in which the contributions were made, without the inquirer losing the right to the reduction corresponding to their contributions.

The DGT's ruling

The expenditure of money and the consumption of fungible goods to meet the vital needs of the beneficiary are not considered acts of disposal for the purposes of the four-year maintenance requirement under Article 54.5 of the Personal Income Tax Law (LIRPF). Nevertheless, to maintain the tax benefits, the effective establishment and maintenance of the protected assets must be proven. The determination of vital needs and the existence of the assets is a matter of fact that must be proven by the taxpayer.

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