Inherited shares: how capital gains are taxed
The law is clear on this point: in the case of purchase by inheritance of participations, the tax cost is the value declared in the inheritance
2' min read
2' min read
Question. I am dealing with the succession of my uncle. In addition to the real estate, he left cash, shares and mutual funds. The value of the securities to be indicated in the inheritance declaration was provided to me by the bank (letter of assets), and is what the securities have on the date of death. These securities generate a capital gain of EUR 20,000, on which a tax of 26 per cent must be paid, i.e. EUR 5,200. By indicating the value of the securities provided by the bank in the inheritance declaration, I will also have to pay 6 per cent on this sum. So I will also pay 6 per cent on the capital gain in the inheritance. Can this double taxation be avoided?
Answer. The taxation assumed by the reader is incorrect. Capital gains and other miscellaneous income of a financial nature are realised when the transfer for consideration of participations, securities or rights is made at a price higher than the cost, increased by any charge inherent in the production of such capital gains. Thus, in the case envisaged, the relevant moment - for the purposes of the accrual of the different income - is not that of the opening of the succession, but that of the transfer of the securities. With regard to the 'initial value', on the other hand, one takes into account - in principle - what is declared in the succession. The legislation is clear on this point: in the case of purchase by inheritance of participations, the tax cost is represented by the value declared in the inheritance (Article 68(6) of Presidential Decree 917/1986). The reader, in short, will pay inheritance tax on the value of the securities indicated in the relevant declaration and, in the case of a sale for consideration, tax on the capital gain, assuming as the initial element for the calculation of the taxable base the above value, increased by the same inheritance tax paid and any other inheritance tax charge.
The question is taken from the insert L'Esperto risponde on newsstands with Il Sole 24 Ore of Monday 8 April.
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