Skip to content
Back to index
V2584-18 24 September 2018 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancia patrimonial

Capital gains tax cannot be reduced by amounts paid to a relative under a testamentary mandate

A taxpayer inquired whether funds transferred to a cousin to fulfil a testamentary wish could reduce the capital gains tax arising from the sale of a share. The Directorate General for Taxes (DGT) ruled that such amounts are already subject to specific treatment under Inheritance and Gift Tax.

The question raised

Whether the amount transferred to her aunt can be used to reduce the capital gain derived from the sale of the bare ownership of the share.

The DGT's ruling

The amount paid to the aunt by testamentary mandate cannot reduce the capital gain in the Personal Income Tax (IRPF). As it is subject to Inheritance and Gift Tax, said income is not subject to IRPF pursuant to Article 6.4 of Law 35/2006. The tax impact of that payment is already taken into account through the reduction in the taxable base of the inheritance tax.

Book your free first meeting