Corporation Tax Act 2009 section 28

Dealers in securities etc.

Section 28 preserves elections previously made by dealers in securities to postpone mark-to-market accounting, ensuring these elections remain valid despite the repeal of the original legislation by the Corporation Tax Act 2009.

• The Corporation Tax Act 2009 repealed the old rule in section 473(2B) of ICTA dealing with the conversion of securities held as circulating capital by dealers in securities.
• Under the Finance Act 2002, dealers could elect to continue postponing the requirement to account for securities on a mark-to-market basis.
• Any such election made before the repeal took effect remains valid and is not disturbed by the repeal.
• This is a transitional safeguard ensuring that companies which relied on the earlier election are not adversely affected by the rewrite of corporation tax law.