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Practical Income Manual 2021.

Capital gains and losses

Determination of the amount of capital gains or losses: general rules

Capital gains or losses derived from lucrative transfers

Succession agreements

Article 3 of Law 11/2021, of July 9, on measures to prevent and combat tax fraud ( BOE of 10) modified, as of July 11, 2021, Article 36 of the Personal Income Tax Law to introduce that, in the case of lucrative acquisitions due to death derived from contracts or succession agreements with present effects , the beneficiary of the same who transmits the acquired assets before the passage of five years from the execution of the succession agreement or the death of the deceased, if earlier, will be subrogated to the latter's position, with respect to the value and date of acquisition of those, when this value is lower than that resulting from the application of the Inheritance and Donation Tax rules.

This modification is complemented by a transitional regime that establishes that it will only be applicable to the transfers of assets carried out after July 11, 2021 that have been acquired lucratively due to death under contracts or succession agreements with effective of present.

Therefore, the new subrogation rule included in article 36 of the Personal Income Tax Law for the transfers of assets, under contracts or succession agreements with present effects, will not be applicable to transmissions made before July 11, 2021. In such cases, the acquisition value to be taken into account will be the result of the Inheritance and Donation Tax rules when the transfer was made, and this acquisition value will be taken as the actual amount for which the acquisition occurred.

Earnings excluded from tax in reinvestment cases

For the purposes of calculating the reinvestment period in the exemptions for reinvestment in habitual residence and in newly or recently created entities, it will not be taken into account because the period between March 14, 2020, the date of entry into force of the Real, has been suspended. Decree 463/2020, and on May 30, 2020, by virtue of the provisions of the ninth Additional Provision of Royal Decree-Law 11/2020, of March 31, by which urgent complementary measures are adopted in the social and economic to confront COVID-19 (BOE of April 1) and the modification of the temporal references provided for in the first Additional Provision of Royal Decree-Law 15/2020, of April 21, on complementary urgent measures to support the economy and employment (BOE of 22).