What is happening with Plusvalía in the Valencian Community?
What is it and what has happened with the Plusvalía tax?
The Plusvalía tax is applied by the municipalities to tax the benefits that a person obtains when they sell, donate or inherit a home, if compared to the value that the property had at the time of purchase. What happened was that the Constitutional Court considered that the system used to calculate the amount applicable to the tax was illegal. In this way, the collection of the more than 2,500 million euros per year that the consistories enter for the so-called capital gain was suspended.
A new capital gains tax designed by the Treasury....
The Ministry of Finance set out to design a new capital gains tax, in which, in reality, only the way of calculating it changes. From now on, there will be two options and taxpayers will be able to choose the one that compensates them the most or, in other words, is more favorable to them.
Option 1. The capital gains tax will be calculated on the cadastral value of the year in which the property was purchased and the year of sale, updated annually.
Option 2. The difference between the cost of the purchase and the cost of the sale will be calculated.
With this, in addition to complying with the law, what is pursued is that a person does not have to unfairly pay the capital gains tax if the value of the property has not increased from what he bought, at the time of making the sale.
When performing the calculation, the taxpayer will be able to verify the difference between both data and the differential on which the calculation will be made. In this way, even if the spread is the same, the seller will always be better off using the lower resulting data of those two options.
And if I sell at a loss, will I have to continue paying the municipal capital gains?
No, not in this case. In fact, this is the main problem that is solved with the new design of this tax, which prevents a person who sells a property for a lower value than what he bought it from having to pay the capital gains.
If in some case the house is sold more expensive, but the cadastral value is lower (something that can hardly happen), the calculation would be made through the two options proposed by the Ministry of Finance and, from there, it could be chosen the most convenient and, therefore, pay a lower figure to the treasury.
How will the new municipal capital gain be settled from now on?
When the tax recently designed by the Government is published in the BOE we will have the opportunity to add all the particularities that are indicated in the legal text. Of course, we must bear in mind that it will continue to be the city council that will calculate the amount to be paid and we will have to pay it.
It is important to bear in mind that, especially at the beginning, the difference in the cadastral value may continue to be used by default to perform the calculation. You should know that all taxpayers have the opportunity to claim for 30 days to request a new calculation, if we consider that the other option may be more favorable for our pocket.
Capital gains less than a year
As a novelty, capital gains generated in less than a year will be taxed, those that occur when less than a year has elapsed between the date of acquisition and transmission and that may have a more speculative nature.
The new regulation exempts those taxpayers who do not obtain a capital gain from the sale of the home. In this case, it will be necessary to prove the non-existence of an increase in value by providing the titles that document the transmission and acquisition.
The ruling of the Constitutional Court does not allow taxpayers to claim self-assessments that are already firm or that have not been appealed on the date of the ruling, so the new regulations do not have retroactive effects.
The decree says nothing about the period from the ruling of the Constitutional Court (October 26) until its entry into force on November 10. A legal vacuum of 15 days in which, in principle, taxpayers are exempt from paying since the tax base prevents the liquidation, verification, collection, review and enforceability of the tax.
Article credits: HABITACLIA Tag: Municipal surplus value, #Plusvalia #Plusvaliamunicipal
Information published by the agent of Pastor Viviendas Oleh Haramita