diff --git a/source/java/org/alfresco/repo/transaction/RetryingTransactionHelper.java b/source/java/org/alfresco/repo/transaction/RetryingTransactionHelper.java
index a1893932e4..cd79b4eb6b 100644
--- a/source/java/org/alfresco/repo/transaction/RetryingTransactionHelper.java
+++ b/source/java/org/alfresco/repo/transaction/RetryingTransactionHelper.java
@@ -366,8 +366,7 @@ public class RetryingTransactionHelper
         }
 
         // First validate the requiresNew setting
-		boolean startingNew = requiresNew;
-        if (!startingNew)
+        if (!requiresNew)
         {
             TxnReadState readState = AlfrescoTransactionSupport.getTransactionReadState();
             switch (readState)
@@ -385,7 +384,7 @@ public class RetryingTransactionHelper
                     break;
                 case TXN_NONE:
                     // There is no current transaction so we need a new one.
-                    startingNew = true;
+                    requiresNew = true;
                     break;
                 default:
                     throw new RuntimeException("Unknown transaction state: " + readState);
@@ -395,7 +394,7 @@ public class RetryingTransactionHelper
         // If we are time limiting, set ourselves a time limit and maintain the count of concurrent transactions
         long startTime = 0;
 		Throwable stackTrace = null;
-        if (startingNew && maxExecutionMs > 0)
+        if (requiresNew && maxExecutionMs > 0)
         {
             startTime = System.currentTimeMillis();
             synchronized (this)
@@ -433,11 +432,10 @@ public class RetryingTransactionHelper
                 UserTransaction txn = null;
                 try
                 {
-                    if (startingNew)
+                    if (requiresNew)
                     {
-                        txn = requiresNew ?
-                                txnService.getNonPropagatingUserTransaction(readOnly, forceWritable) :
-                                txnService.getUserTransaction(readOnly, forceWritable);
+                        txn = txnService.getNonPropagatingUserTransaction(readOnly, forceWritable);
+
                         txn.begin();
                         // Wrap it to protect it
                         UserTransactionProtectionAdvise advise = new UserTransactionProtectionAdvise();
@@ -588,7 +586,7 @@ public class RetryingTransactionHelper
         }
         finally
         {
-            if (startingNew && maxExecutionMs > 0)
+            if (requiresNew && maxExecutionMs > 0)
             {
                 synchronized (this)
                 {
diff --git a/source/test-java/org/alfresco/repo/transaction/AlfrescoTransactionSupportTest.java b/source/test-java/org/alfresco/repo/transaction/AlfrescoTransactionSupportTest.java
index 90b7b90439..81c5165ba0 100644
--- a/source/test-java/org/alfresco/repo/transaction/AlfrescoTransactionSupportTest.java
+++ b/source/test-java/org/alfresco/repo/transaction/AlfrescoTransactionSupportTest.java
@@ -246,6 +246,12 @@ public class AlfrescoTransactionSupportTest extends TestCase
             {
                 postCommitReadState[0] = AlfrescoTransactionSupport.getTransactionReadState();
             }
+
+            @Override
+            public void afterRollback()
+            {
+                postCommitReadState[0] = AlfrescoTransactionSupport.getTransactionReadState();
+            }
         };
 
         RetryingTransactionCallback<TxnReadState> getReadStateWork = new RetryingTransactionCallback<TxnReadState>()
@@ -271,6 +277,20 @@ public class AlfrescoTransactionSupportTest extends TestCase
         checkTxnReadState = transactionService.getRetryingTransactionHelper().doInTransaction(getReadStateWork, false);
         assertEquals("Expected 'read-write transaction'", TxnReadState.TXN_READ_WRITE, checkTxnReadState);
         assertEquals("Expected 'no transaction'", TxnReadState.TXN_NONE, postCommitReadState[0]);
+
+        // Check TXN_NONE on rollback
+        UserTransaction txn = transactionService.getUserTransaction();
+        txn.begin();
+        AlfrescoTransactionSupport.bindListener(getReadStatePostCommit);
+        txn.rollback();
+        assertEquals("Expected 'no transaction'", TxnReadState.TXN_NONE, postCommitReadState[0]);
+
+        // Check TXN_NONE on commit
+        txn = transactionService.getUserTransaction();
+        txn.begin();
+        AlfrescoTransactionSupport.bindListener(getReadStatePostCommit);
+        txn.commit();
+        assertEquals("Expected 'no transaction'", TxnReadState.TXN_NONE, postCommitReadState[0]);
     }
     
     public void testResourceHelper() throws Exception
diff --git a/source/test-java/org/alfresco/repo/transaction/RetryingTransactionHelperTest.java b/source/test-java/org/alfresco/repo/transaction/RetryingTransactionHelperTest.java
index 0ba4f96219..87d841f607 100644
--- a/source/test-java/org/alfresco/repo/transaction/RetryingTransactionHelperTest.java
+++ b/source/test-java/org/alfresco/repo/transaction/RetryingTransactionHelperTest.java
@@ -334,7 +334,7 @@ public class RetryingTransactionHelperTest extends TestCase
     /**
      * Checks nesting of two transactions with <code>requiresNew == false</code>
      */
-    public void testNestedWithPropogation()
+    public void testNestedWithPropagation()
     {
         RetryingTransactionCallback<Long> callback = new RetryingTransactionCallback<Long>()
         {
@@ -362,7 +362,7 @@ public class RetryingTransactionHelperTest extends TestCase
     /**
      * Checks nesting of two transactions with <code>requiresNew == true</code>
      */
-    public void testNestedWithoutPropogation()
+    public void testNestedWithoutPropagation()
     {
         RetryingTransactionCallback<Long> callback = new RetryingTransactionCallback<Long>()
         {
@@ -390,17 +390,18 @@ public class RetryingTransactionHelperTest extends TestCase
     /**
      * Checks nesting of two transactions with <code>requiresNew == true</code>,
      * but where the two transactions get involved in a concurrency struggle.
-     * 
+     * <p/>
      * Note: skip test for non-MySQL
      */
-    public void testNestedWithoutPropogationConcurrentUntilFailureMySQL() throws InterruptedException
+    public void testNestedWithoutPropagationConcurrentUntilFailureMySQL() throws InterruptedException
     {
         final RetryingTransactionHelper txnHelperForTest = transactionService.getRetryingTransactionHelper();
         txnHelperForTest.setMaxRetries(1);
         
         if (! (dialect instanceof MySQLInnoDBDialect))
         {
-            // NOOP - skip test for non-MySQL DB dialects to avoid hang if concurrently "nested" (in terms of Spring) since the initial transaction does not complete
+            // NOOP - skip test for non-MySQL DB dialects to avoid hang if concurrently "nested" (in terms of Spring)
+            // since the initial transaction does not complete
             // see testConcurrencyRetryingNoFailure instead
             logger.warn("NOTE: Skipping testNestedWithoutPropogationConcurrentUntilFailureMySQLOnly for dialect: "+dialect);
         }
@@ -556,6 +557,7 @@ public class RetryingTransactionHelperTest extends TestCase
         assertEquals("Should have been called exactly once", 1, callCount.intValue());
     }
     
+    @SuppressWarnings({ "unchecked", "rawtypes" })
     public void testTimeLimit()
     {
         final RetryingTransactionHelper txnHelper = new RetryingTransactionHelper();
@@ -617,7 +619,39 @@ public class RetryingTransactionHelperTest extends TestCase
         assertEquals("Should have been called tree times", 3, callCount.intValue());
         
     }
-    
+
+    public void testStartNewTransaction() throws Exception
+    {
+        // MNT-10096
+        class CustomListenerAdapter extends TransactionListenerAdapter
+        {
+            private String newTxnId;
+
+            @Override
+            public void afterRollback()
+            {
+                newTxnId = txnHelper.doInTransaction(new RetryingTransactionCallback<String>()
+                {
+                    @Override
+                    public String execute() throws Throwable
+                    {
+                        return AlfrescoTransactionSupport.getTransactionId();
+                    }
+                }, true, false);
+            }
+        }
+
+        UserTransaction txn = transactionService.getUserTransaction();
+        txn.begin();
+        String txnId = AlfrescoTransactionSupport.getTransactionId();
+        CustomListenerAdapter listener = new CustomListenerAdapter();
+
+        AlfrescoTransactionSupport.bindListener(listener);
+        txn.rollback();
+
+        assertFalse("New transaction has not started", txnId.equals(listener.newTxnId));
+    }
+
     private void runThreads(final RetryingTransactionHelper txnHelper, final List<Throwable> caughtExceptions,
             Pair<Integer, Integer>... startDurationPairs)
     {