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Practical Income Manual 2020.

2.2. Special rule: listed securities

In the case of securities admitted to trading on any of the official secondary securities markets defined in Directive 2004/39/EC of the European Parliament and of the Council, of April 21, 2004, relating to the markets for financial instruments and shares or participations in collective investment institutions, as there is an official quote, it is estimated that the value as of January 19, 2006 coincides with its valuation for the purposes of the Wealth Tax corresponding to the financial year 2005.

Please note that Directive 2004/39/EC has been repealed with effect from 3 January 2017 by Directive 2014/65/ EU of the European Parliament and of the Council of 15 May 2014, relating to financial instrument markets. This, in its article 94, provides that references to Directive 2004/39/EC will be understood as references to Directive 2014/65/ EU

In short, in these cases the determination of the capital gain generated before and after January 20, 2006 is carried out taking into consideration the following values:

  1. Acquisition value of the securities, shares or participations (VA).

  2. Value that corresponds to the aforementioned securities, shares or participations for the purposes of the Wealth Tax corresponding to the year 2005 (VP).

    In the case of shares and participations in collective investment institutions , the valuation for the purposes of the Wealth Tax corresponding to the year 2005 is carried out at their net asset value as of December 31, 2005.

    For the rest of the shares and participations admitted to trading , the valuation for the purposes of the 2005 Wealth Tax is carried out by the average trading value of said securities in the fourth quarter of 2005. This assessment is included in Order EHA/492/2006, of February 17 ( BOE of the 27th).

  3. Transfer value of securities, shares or participations (VT).

    Based on these values, the calculation of the generation of capital gain is carried out as indicated in the following diagram:

    Special rule: calculation of the part of the capital gain generated before 01-20-2006

    SITUATION 1

    The Transmission Value is equal to or greater than the 2005 Equity Value

    (VT ≥ VP2005)

    The Acquisition Value is lower than the 2005 Equity Value (VA < VP2005)

    Reducible portion of capital gain:

    (+) Equity Value 2005

    (–) Acquisition Value

    = Capital gain generated before 01-20-2006

    Non-reducible portion of capital gain:

    (+) Transmission Value

    (–) Equity Value 2005

    = Capital gain generated as of 01-20-2006

    The Acquisition Value is greater than or equal to the 2005 Equity Value (VA ≥ VP2005)

    No part of the capital gain is reducible:

    (+) Transmission Value

    (–) Acquisition Value

    = Capital gain generated as of 01-20-2006

    SITUATION 2

    The Transmission Value is lower than the 2005 Equity Value

    (VT < VP2005)

    The entire capital gain is reducible:

    (+) Transmission Value

    (–) Acquisition Value

    = Capital gain generated before 01-20-2006