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V3220-20 28 October 2020 · SG de Impuestos sobre la Renta de las Personas Físicas Criterion in force
IRPF · patrimonio protegido

Spending fungible money and assets on vital needs is not considered a disposal of protected assets

A query was raised regarding whether the immediate use of money for a disabled person's current expenses (such as therapy, food, and clothing) constitutes a disposal of assets that would require the repayment of tax benefits. The Directorate General for Taxes (DGT) ruled that spending on such vital needs does not constitute an act of disposal.

The question raised

Whether the contributed money may be used immediately to pay for therapy invoices and current acquisitions for the disabled person, such as clothing or food.

The DGT's ruling

The expenditure of money and the consumption of fungible goods to meet the vital needs of the beneficiary person shall not be considered a disposal of assets or rights for the purposes of the requirement to maintain contributions during the four years following the year of their contribution. Notwithstanding, the expenditure must not prevent the effective constitution and maintenance of the protected assets. The specification of vital needs and the existence of the assets are matters of fact that the taxpayer must prove.

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