Income Tax Act 2007 section 681

Unrealised interest received by transferee after transfer within Chapter 2 of Part 12

Section 681 deals with unrealised interest received by a transferee after a transfer of securities, and paragraph 128 of Schedule 2 modifies its application for transfers that occurred before 19 March 1986.

• Section 681(1) addresses situations where a transferee receives unrealised interest following a transfer of securities falling within Chapter 2 of Part 12
• For transfers that took place before 19 March 1986, a transitional modification applies to the way section 681(1) operates
• The modification removes the requirement in paragraph (b) of section 681(1), so that only paragraph (a) needs to be satisfied for those earlier transfers
• This transitional rule ensures that pre-19 March 1986 transfers are not retrospectively caught by the additional condition introduced by paragraph (b)