Not derived from transfers of assets

Regulations: Art. 34.1.b) Law Income Tax

In other cases other than onerous or lucrative transfer, the amount of the capital gain or loss will be the market value of the assets or proportional parts , where applicable.

This category of capital gains should include the incorporation of assets or rights into the taxpayer's estate that do not derive from a prior transfer, such as, for example, the receipt of certain subsidies or aid for the acquisition or rehabilitation of the habitual residence, rental aid, the 200 euro aid for people with low income and assets, the Youth Cultural Bonus, those derived from the forestry use of public forests by residents, interest of a compensatory nature arising from the delay in the fulfillment of an obligation, including the payment of salaries, as well as prizes obtained for participation in games, contests, raffles or random combinations.

Note:

Aid of 200 euros to individuals with low income and assets

Although no such measure has been approved for the 2024 fiscal year, if the taxpayer had received in said tax period the aid of 200 euros established by article 74 of Royal Decree-Law 20/2022, of December 27, on response measures to the economic and social consequences of the War in Ukraine and support for the reconstruction of the island of La Palma and other situations of vulnerability ( BOE December 28), they must record its amount in their 2024 personal income tax return, pursuant to article 14.2.c) of the Personal Income Tax Law , as for its beneficiaries it is considered a capital gain derived from public aid.

Youth cultural bonus:

Law 22/2021, of December 28, on the General State Budget for the year 2022 ( BOE of December 29) created, with effect from January 1, 2022, the so-called "Youth Cultural Voucher", aimed at facilitating young people's access to culture.

This is an aid for the acquisition of cultural products and services offered by the entities that adhere to the program, whose maximum amount is 400 euros per beneficiary, and whose temporary scope of application was extended, indefinitely, by the One Hundred and Fourth Additional Provision of Law 31/2022, of December 23, on the General State Budget for the year 2023 ( BOE of December 24), the beneficiaries being those young people who have turned 18 during the year 2024 and meet the requirements demanded by Royal Decree 191/2023, of March 21, which establishes the regulations governing the Young Cultural Bonus ( BOE of March 22).

The amount is granted once to each beneficiary and must be used within a maximum period of one year from the date of granting. The amount granted is paid in a single payment using virtual prepaid cards. After the aforementioned 1-year period has elapsed, the Youth Cultural Bonus is automatically deactivated, and the collaborating entity proceeds to refund the amounts not used.

For this reason, only the monetary amount of the aid that has actually been used to acquire cultural products and services gives rise to a capital gain for the individuals who have benefited from it, and it must be attributed to the respective tax period in which the eligible cultural products, services, and activities were acquired, since this is when the subsidy is deemed to have been collected.

Specific assumptions:

In the case of grants the amount of said gain will be the monetary amount of the grant.

In relation to the prizes, it is worth distinguishing:

Cash prizes. These prizes are subject to withholding, so the amount computable as capital gain will consist of the entire prize without deducting the withholding incurred, which will be declared as such in the section of the declaration corresponding to withholdings and other payments on account.

Please note that, in the specific case of gaming accounts, the capital gain belongs exclusively to the account holder, who must declare the overall positive difference between the winnings obtained and the contributions made throughout the fiscal year in all accounts held by the account holder. You cannot compute losses or deduct any expenses.
Prizes in kind. These prizes are subject to advance payment, so the total computable amount will be composed of the sum of the valuation of the prize received, which will be carried out at its market value, plus the advance payment, unless the latter has been passed on to the taxpayer.

In the case of legal costs two situations must be distinguished:

Taxpayer obligated—by court ruling—to pay the legal defense costs incurred by the winning party in the process.

This is a capital loss, both for the compensation and for the legal interest resulting from the court ruling, which will be charged to the tax period in which the conviction became final, since it is during this tax period that the change in assets that gave rise to it took place. It is integrated into the general tax base in the manner and with the limits established in article 48 of the IRPF law.
Taxpayer who, as the winner of a legal proceeding, receives a certain amount for the condemnation of legal costs to the opposing party.

In this case, in order to determine the capital gain that the opposing party may incur from being ordered to pay legal costs, the winning litigant may deduct from the amount received in the form of costs the expenses incurred in connection with the lawsuit, a deductible amount that may reach a maximum of the amount received, without exceeding it. Therefore, if the amount of the award of costs corresponds to the expenses incurred - which can be classified as costs - there will not have been a capital gain for the consultant with respect to the costs. See Resolution of the TEAC of June 1, 2020, Claim number 00/06582/2019 , issued in an appeal for the unification of criteria.

In the case of late payment interest, the recent Supreme Court ruling no. 24/2023, of January 12, issued in the appeal for cassation no. 2059/2020 ( ROJ : STS 121/2023), which expressly corrects the criterion established by said Court in a previous judgment of December 3, 2020 (appeal no. 7763/2019) on the same issue of cassation interest, establishes as doctrine: "the late payment interest paid by the Tax Agency when making a refund of undue income is subject to and not exempt from IRPF , constituting a capital gain that constitutes general income, in accordance with the provisions of article 46.b) of the Personal Income Tax Law, interpreted a sensu contrario."

This criterion is also applicable to late payment interest paid by other Administrations, entities or subjects other than the Tax Agency and, in general, to compensatory interest received by taxpayers which, following the Supreme Court ruling, are classified as capital gains to be included in the general tax base because, as the Court states, they have not been made clear on the occasion of the transfer of assets.

The existence of two successive and opposing criteria of the Supreme Court on the same issue of cassation interest raises a problem directly related to the principle of protection of legitimate expectations, a principle of jurisprudential creation whose effectiveness depends on the specific circumstances of each case. In this sense, the actions of a taxpayer who, following the Supreme Court ruling of December 3, 2020 (appeal for cassation no. 7763/2019), had formulated his self-assessment for the IRPF without incorporating into it the late payment interest paid by a Tax Authority as a result of a refund of undue income, would be covered by the principle of protection of legitimate expectations if, subsequently, after the publication of the Supreme Court ruling of January 12, 2023 (appeal for cassation no. 2059/2020) which considers said interests subject to tax, the Tax Authority sought to regularize its tax situation with support from this last ruling, since past situations cannot be regularized, to the detriment of the taxpayer, in which the latter applied in its self-assessment the jurisprudential criterion established in the ruling of December 3, 2020 (appeal for cassation no. 7763/2019). December 2020, a criterion that, being the one in force at the time of filing the self-assessment, was the criterion that, in accordance with the doctrine of this Central Court, bound the Tax Administration. See Resolutions of the TEAC dated May 29, 2023, appeals No. 00-02478-2022 and 00-08937-2022, which were filed in two extraordinary appeals for the unification of criteria.

Note: the return, in cash or through other compensation measures, of amounts previously paid to financial institutions as interest for the application of interest rate limitation clauses on loans ( -called floor clause), together with their corresponding compensatory interest, arising from both agreements entered into with financial institutions and compliance with judgments or arbitration awards, will not be included in the tax base of ##1## IRPF ##1##.

In the case of rewards received by those who participate in a promotional campaign , and introduce new clients who contract any of the products marketed, its amount is considered capital gain, as it involves the incorporation of an asset into the taxpayer's assets, and will be included in the general tax base.