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V3105-17 30 November 2017 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · pérdida patrimonial

Payment of legal interest via court ruling deemed a computable capital loss

A query was raised regarding whether the payment of legal interest arising from a court judgment can be considered a capital loss. The DGT has ruled that, as it constitutes a change in the composition of assets, it is a computable capital loss.

The question raised

Consideration of the payment of interest as a capital loss and temporal imputation.

The DGT's ruling

Legal interest with an indemnifying nature entails an alteration in the composition of assets due to the emergence of a payment obligation. As they are not included in the exclusions of Article 33.5 of the Personal Income Tax Law, they constitute a capital loss. The temporal imputation must be carried out in the tax period in which the alteration occurs, which is when the interest is settled.

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