7. Loss of the right to exemption for reinvestment in annuities

Regulations: Art. 42.5 Regulation Income Tax

Remember: In those cases where the situation that motivates the regularization affects tax periods prior to 2024, consult the practical manual corresponding to the aforementioned tax period.

Failure to comply with any of the conditions established for the application of the exemption for reinvestment in life annuities, or the advance, in whole or in part, of the economic rights derived from the life annuity established, will determine the subjection to taxation of the corresponding capital gain.

In such a case, the taxpayer will attribute the non-exempt capital gain to the year in which it was obtained, filing a corrective self-assessment for the 2024 tax year. This will be filed within the period between the date on which the non-compliance occurs and the end of the regulatory declaration period corresponding to the tax period in which said non-compliance occurs.

This self-assessment will generate late payment interest which, where applicable, will be settled by the Administration.

Note: If the corrective declaration for the year 2024 responds to this circumstance, the taxpayer must mark with an "X" box [118] in the "Corrective self-assessment" section of the declaration.