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V2747-23 9 October 2023 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · ganancia patrimonial

No capital gains tax on share donations if LISD and LIP requirements are met

The taxpayer asks whether the donation of shares in a family business can be exempt from capital gains tax under Personal Income Tax (IRPF). The DGT rules that no capital gain will be recognised if the requirements for reductions under Inheritance and Gift Tax and exemptions under Wealth Tax are satisfied.

The question raised

Whether the provisions of article 33.3.c) of the Personal Income Tax Law may be applicable to the donation.

The DGT's ruling

In order for there to be no capital gain or loss for the donor (art. 33.3.c LIRPF), the reduction provided in art. 20.6 LISD must be applicable. This requires that the donor be entitled to the exemption in the Wealth Tax (art. 4.Eight.Two LIP). In joint holdings with family members, management functions and the corresponding remuneration may be performed by at least one of the members of the kinship group.

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