Income Tax Act 2007 section 661

Successive transfers with unrealised interest in default

Section 661 deals with the rules on successive transfers of securities where interest has not been paid when due, and paragraph 127 of Schedule 2 provides a transitional exemption based on the date the transferor originally acquired the securities.

• Section 661 covers successive transfers of securities where interest payments are in default
• The section does not apply if the transferor acquired the securities before 28 February 1986
• This date acts as a historical cut-off for the application of the accrued income provisions
• Securities acquired before that date are exempt from the successive transfer rules in section 661