Example 2: Determination of the amount of gain derived from the onerous transfer of listed shares acquired prior to December 31, 1994
In addition to the chalet referred to in the previous example, Mr. BPT sold on the stock exchange on October 30, 2022, 300 shares of the TASA Public Limited Company for an amount of 75,000 euros. These shares were acquired on 31 May 1991 for a total amount of 57,000 euros.
The value of these shares for the purposes of the Wealth Tax for the year 2005 amounted to 66,000 euros.
Determine the amount of capital gain or loss obtained in said operation.
Solution:
1. Determination of the total capital gain or loss :
Transfer value of shares: 75,000
Purchase value of shares: 57,000
Total capital gain: 18,000
2. Determination of the capital gain generated prior to 20-01-2006 :
Since the transfer value of the shares admitted to trading is higher than their valuation for the purposes of the Wealth Tax for the 2005 financial year, which amounts to 66,000 euros, the part of the capital gain deemed to have been generated prior to 20 January 2006, which is the only part to which the reduction coefficients are applicable, must be determined.
This determination is made as follows:
Value for the purposes of the 2005 Wealth Tax (transfer value): 66,000
Acquisition value: 57,000
Capital gain generated before 20-01-2006 (66,000 -57,000) = 9,000
3. Calculation of reduction
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Profit generated prior to 20-01-2006 susceptible to reduction
Maximum limit: 400,000.00
∑ Accumulated transfer value of assets with the right to reduction since 01-01-2015 = 335,000.00
Transfer value of the asset to which DT9 Law of Personal Income Tax applies (1) = 65,000
Capital gain susceptible to reduction (9,000 x 65,000) ÷ 75,000 = 7,800
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Applicable reduction
Number of years of permanence as of 31-12-1996: up to 6 years
Reduction by abatement coefficients (100% x 7,800) = 7,800
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Reduced capital gain
Reduced capital gain (9,000 – 7,800) = 1,200
4. Determination of non-reducible capital gain (generated from 20-01-2006):
Transfer value: 75,000.00
Value for the purposes of the 2005 Wealth Tax (acquisition value): 66,000
Non-reducible capital gain (75,000 - 66,000) = 9,000
5. Determination of computable capital gain: (1,200 + 9,000) (2) = 10,200
Notes to the example:
(1) Although the value of the transfer is 75,000.00 euros, as 335,000 euros of the 400,000 euro limit were already used in the previous transfer (the villa in example 1), only 65,000 euros remain to be used in the current transfer. Therefore, the portion of the profit generated before 20-01-2006 that corresponds proportionally to a transfer value of 65,000 euros is subject to reduction. In the next transfer that is made, even if the asset was acquired by the taxpayer before December 31, 1994, the reductions of the ninth transitional provision of the Tax Law cannot be applied. (Back)
(2) This last amount can also be determined directly by the difference between the total capital gain obtained and the reduction applied. That is to say: (18,000 – 7,800 = 10,200). (Back)