Shareholders cannot claim capital losses due to the suspension of stock trading
The situation of companies that suspend their stock market listing creates uncertainty among shareholders regarding the tax treatment of their holdings. Recently, the Dirección General de Tributos (DGT) has clarified the exact moment at which a shareholder can recognize a capital loss in their Personal Income Tax (IRPF) return.
What the DGT has ruled
The advisory body has determined that the suspension of trading for certain shares does not, in itself, imply the existence of a capital loss. For an asset alteration to occur that affects the savings tax base, there must be an effective transfer or an extinction of ownership.
According to the established criteria, there are two main scenarios in which a shareholder can compute a result:
- Dissolution and liquidation: The loss is only considered when the company's dissolution and subsequent liquidation occur, at which point the value of the assets is determined against the acquisition value.
- Transfer to third parties: The sale of shares generates a capital gain or loss based on the difference between the acquisition value and the transfer value.
What this means for you
If you are an individual holding shares in a company that has ceased trading, you cannot declare a loss in your IRPF based solely on the lack of liquidity or the drop in market value due to the suspension. The regulations require a real change in assets to occur for the tax impact to be computable.
This criterion implies that, as long as the company maintains its existence and you retain ownership of the shares, the value of your investment will remain latent without tax effects, regardless of the difficulty in trading those securities on the market.
What you should do
In the event of a suspension of trading of your assets, it is necessary to evaluate the exit strategy or the situation of the issuing company. Determining the appropriate fiscal moment will depend on whether you opt to sell the holding or if the company enters a liquidation process. Each situation requires a technical analysis to determine the applicable acquisition and transfer values, avoiding errors in the savings tax base.
Frequently asked questions
- Can I declare a loss if my shares can no longer be sold on the stock exchange?
- No, the suspension of trading is not a taxable event; there must be a transfer or a liquidation of the company.
- At what moment is the gain or loss from the sale of shares computed?
- It is computed at the time of the transfer, comparing the acquisition value with the transfer value.