Income Tax Act 2007 section 129

Transactions in securities: general

Section 129 deals with the transitional rules for applying the anti-avoidance provisions on transactions in securities, explaining how the old ICTA rules and the new ITA 2007 rules interact, particularly for tax years before 2007-08.

• The old ICTA rules (Chapter 1 of Part 17) continue to apply where HMRC has already issued notices requiring tax adjustments for tax years before 2007-08; the new ITA 2007 counteraction notice cannot be used to make adjustments for those earlier years covered by existing ICTA notices.
• Subject to that limitation, the new ITA 2007 rules (Chapter 1 of Part 13) apply regardless of whether the transactions giving rise to the tax advantage took place before or after 6 April 2007.
• The new rules also apply even if the tax year in which the advantage arises (the "tax advantage year") is a year before 2007-08.
• However, there is a time limit: no assessment arising from a counteraction notice under the new rules may be made more than 6 years after the end of the tax advantage year.