Inca modifies the ordinance regulating capital gains tax and maintains the tax rate and bonuses

Mar 18, 2022 | Current affairs, Featured, Revista Lloseta, Thursday Daily Bulletin, Tradition

The Inca Town Council approved today, during the special plenary session, the modification of the municipal ordinance of the tax on the increase in value of urban land (capital gains tax) to adapt it to the new royal decree-law and incorporate the established modifications. In this way, the Raiguer town council maintains the tax rate and the allowances, which reach up to 95% in the case of transfers from parents to children.

Therefore, this new document consolidates all the existing bonuses. In this way, a reduction of 95% of the full amount of the tax is established in the transfer of land and in the transfer or constitution of real rights of enjoyment limiting the domain, made for profit due to death in favour of descendants and adopted persons, ascendants and adoptive parents in the first degree, and spouses. The allowance is 75% in the case of the second degree and 50% in the case of the third and fourth degree.

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Furthermore, land transfers in respect of which there is no increase in value due to the difference between the value of the land on the dates of transfer and acquisition are not subject to this tax.

Finally, it should be noted that the approval of the modification of the ordinance regulating the tax on the increase in value of urban land is necessary to adapt it to Royal Decree-Law 26/2021 of 8 November, which adapts the revised text of the Llei Reguladora de les Hisendes Locals to the recent jurisprudence of the Constitutional Court. Therefore, the tax will be calculated according to the new formula and the most beneficial option will always be applied to the taxpayer.