A jury at Derby Crown Court were told to find the 31-year-old not guilty after the girl could not remember the exact date of the offences.
The confusion meant it was unclear whether to use legislation that came into force on May 1, 2004. This meant he had to be released.
The Home Office said legislation now in Parliament would close this loophole.
No charges
The man was charged with two counts of indecency with a child under the 1956 act and, under the new laws, two counts of a serious sex offence involving a child aged under 13 and one count of causing or inciting a child under 13 to engage in sexual activity.
Under cross-examination the girl, who was six at the time of the alleged incidents, could not give accurate dates.
Offences committed after May 1, 2004, are dealt with under the Sexual Offences Act 2003, but those before are still prosecuted under the 1956 act.
If it cannot be established under which act to prosecute, no charges can be brought, said the Crown Prosecution Service.
The Home Office said a clause in the Violent Crime Reduction Bill, currently before Parliament, would mean defendants would not be able to escape justice due to confusion about the date of the alleged offence.
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