Back to index
V2579-14 1 October 2014 · SG de Impuestos Patrimoniales, Tasas y Precios Públicos Criterion in force
ISD · adquisición mortis causa

The dissolution of a joint ownership among heirs does not entail the loss of the family business reduction if there is no substantial reduction in value

A query is made as to whether the dissolution of a joint ownership among heirs who continue the business individually results in the loss of the reduction for acquisition mortis causa. The DGT responds that the regulations in force at the time of death apply and that the dissolution does not breach the permanence requirement if no substantial reduction in the value of the acquisition occurs.

The question raised

Question posed: The period to be considered. Whether the dissolution of the existing joint ownership among the heirs, with each continuing the exploitation individually, would result in the loss of the reduction obtained.

The DGT's ruling

The permanence period is determined by the regulations in force at the time of accrual, i.e., the death of the decedent. The dissolution of the joint ownership among heirs does not breach the permanence requirement if each individual continues the exploitation of their respective share of the property. However, a substantial reduction in the total value of the acquisition of the family business to which the reduction was applied must be avoided.

Email
Contact