Inheritance and gift tax is levied on assets that have been received through an inheritance or gift process. In other words, it is levied on those capital gains that have been obtained for profit; it is direct in nature, given that it taxes the obtaining of the income at the time it is produced; as well as subjective, given that it takes into account personal circumstances.
Although the regulatory power in tax matters belongs to the State, this type of tax has been ceded to the Autonomous Communities, which have the power to collect and verify the corresponding tax. However, this autonomous power has often led to significant differences in taxation in the different territories.
In this regard, how are inheritance and gift taxes levied in the Valencian Autonomous Community, and are there any new tax provisions applicable to this tax?
Well, in addition to the above, we must bear in mind the socio-political context in which we currently find ourselves, as well as the recent change of autonomous government, as this type of circumstance usually brings with it new regulatory developments, one of which is related to the aforementioned tax.
In this way, the procedure has begun to implement a 99% rebate on both taxes for first-degree relatives in the Valencian Community. At present, this tax is currently subsidised at 50% in general, apart from the exceptions for young children or people with disabilities. Therefore, through this modification, the aim is to subsidise those inheritances or donations that are made for the benefit of sons and daughters, spouses, fathers and mothers.
It is also important to note that, once this tax modification is approved, it will be retroactive as of 28 May.