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Practical manual for Income Tax 2024. Part 1

6. Total or partial loss of the right to exemption for reinvestment in habitual residence and in new or recently created entities

Regulations: Art. 41.5 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.

A corrective self-assessment for the 2024 tax year must be filed if, following the application of the exemption for reinvestment of capital gains derived from the transfer of the primary residence or shares or interests in newly or recently created entities, the right to such exemptions has been lost, in whole or in part.

The loss of the right to the aforementioned exemption may occur as a result of:

  • The reinvestment has not been made within the legally established period.

  • Failure to comply with any other conditions that determine the right to the aforementioned tax benefit.

Precision: see in this regard, within Chapter 11, the conditions and requirements that determine both the exemption from the capital gain obtained from the transfer of the habitual residence of the taxpayer by reinvestment in another habitual residence of the amount obtained from the transfer of the previous one, as well as the exemption from the capital gain obtained from the transfer of shares or participations for which the deduction for investment in newly or recently created companies provided for in article 68.1 of the Personal Income Tax Law would have been applied, when the amount obtained from the aforementioned transfer is reinvested in the acquisition of shares or participations in another newly or recently created entity.

The corrective self-assessment for the 2024 tax year must be filed within the period between the date on which the non-compliance occurs and the end of the statutory declaration period, corresponding to the tax period in which the non-compliance occurred.

In this case, late payment interest is settled by the tax management bodies.

The settlement period will be calculated from the end of the deadline for filing the declaration for the fiscal year to which the amendment refers until the payment date, provided that it has been made within the period provided for in the regulations indicated.

Note: If the corrective declaration corresponding to the 2024 financial year corresponds to this circumstance, the taxpayer must mark with an "X" box [117] in the "Corrective self-assessment" section of the declaration.