No stamp duty shall be chargeable by virtue of the heading in Schedule 1 of the Stamp Act 1891 “Deed of any kind whatsoever, not described in this Schedule” on any covenant made otherwise than for consideration in money or money's worth in favour of a body of persons or trust established for charitable purposes only whereby annual payments become payable for a period which may exceed three years and is not capable of earlier termination under any power exercisable without the consent of the persons for the time being entitled to the payments.

This section applies to covenants executed on or after 6th April 1980 and shall be deemed to have come into force on that date.