Many people who inherited or received a gift of property in the Comunidad Valenciana Region received a “supplementary demand” for inheritance tax (Impuesto sobre Sucesiones y Donaciones). This was based on an increased valuation of the property by the tax authority in the Valencia Region.
The tax authority was using powers conferred upon it to change the valuations but the Superior Court in Valencia has ruled that while the relevant powers permitted the tax authority to do so in relation to certain taxes, this did not extend to Spanish inheritance tax.
As a result, the door has been opened for those who received tax demands from the tax authority in Valencia to make an appeal against these tax demands and recover the overpayment with interest.
