- Latest available (Revised)
- Point in Time (03/04/2006)
- Original (As enacted)
Version Superseded: 06/04/2007
Point in time view as at 03/04/2006. This version of this provision has been superseded.
You are viewing this legislation item as it stood at a particular point in time. A later version of this or provision, including subsequent changes and effects, supersedes this version.
Note the term provision is used to describe a definable element in a piece of legislation that has legislative effect – such as a Part, Chapter or section.
There are currently no known outstanding effects for the Finance Act 1988, Section 36.
Revised legislation carried on this site may not be fully up to date. At the current time any known changes or effects made by subsequent legislation have been applied to the text of the legislation you are viewing by the editorial team. Please see ‘Frequently Asked Questions’ for details regarding the timescales for which new effects are identified and recorded on this site.
(1)The following sections shall be inserted at the beginning of Part IX of the Taxes Act 1988—
(1)A payment to which this section applies shall not be a charge on the income of the person liable to make it, and accordingly—
(a)his income shall be computed without any deduction being made on account of the payment, and
(b)the payment shall not form part of the income of the person to whom it is made or of any other person.
(2)This section applies to any annual payment made by an individual which would otherwise be within the charge to tax under Case III of Schedule D except—
(a)a payment of interest;
(b)a covenanted payment to charity (within the meaning given by section 660(3));
(c)a payment made for bona fide commercial reasons in connection with the individual’s trade, profession or vocation; and
(d)a payment to which section 125(1) applies.
(3)This section applies to a payment made by personal representatives (within the meaning given in section 701(4)) where—
(a)the deceased would have been liable to make the payment if he had not died, and
(b)this section would have applied to the payment if he had made it.
(4)A maintenance payment arising outside the United Kingdom shall not be within the charge to tax under Case V of Schedule D if, because of this section, it would not have been within the charge to tax under Case III had it arisen in the United Kingdom; and for this purpose “maintenance payment” means a periodical payment (not being an instalment of a lump sum) which satisfies the conditions set out in paragraphs (a) and (b) of section 347B(5).
(5)No deduction shall be made under section 65(1)(b) on account of an annuity or other annual payment which would not have been within the charge to tax under Case III of Schedule D if it had arisen in the United Kingdom.
(6)References in subsection (2) above to an individual include references to a Scottish partnership in which at least one partner is an individual.
(1)In this section “qualifying maintenance payment” means a periodical payment which—
(a)is made under an order made by a court in the United Kingdom, or under a written agreement the proper law of which is the law of a part of the United Kingdom,
(b)is made by one of the parties to a marriage (including a marriage which has been dissolved or annulled) either—
(i)to or for the benefit of the other party and for the maintenance of the other party, or
(ii)to the other party for the maintenance by the other party of any child of the family,
(c)is due at a time when—
(i)the two parties are not a married couple living together, and
(ii)the party to whom or for whose benefit the payment is made has not remarried, and
(d)is not a payment in respect of which relief from tax is available to the person making the payment under any provision of the Income Tax Acts other than this section.
(2)Notwithstanding section 347A(1)(a) but subject to subsections (3) and (4) below, a person making a claim for the purpose shall be entitled, in computing his total income for a year of assessment, to deduct an amount equal to the aggregate amount of any qualifying maintenance payments made by him which fall due in that year.
(3)The amount which may be deducted under this section by a person in computing his total income for a year of assessment shall not exceed the amount of the difference between the higher (married person’s) relief and the lower (single person’s) relief under subsection (1) of section 257 as it applies for the year to a person not falling within subsection (2) or (3) of that section.
(4)Where qualifying maintenance payments falling due in a year of assessment are made by a person who also makes other maintenance payments attracting relief for that year, subsection (3) above shall apply as if the limit imposed by it were reduced by an amount equal to the aggregate amount of those other payments.
(5)The reference in subsection (4) above to other maintenance payments attracting relief for a year is a reference to periodical payments which—
(a)are made under an order made by a court (whether in the United Kingdom or elsewhere) or under a written or oral agreement, and
(b)are made by a person—
(i)as one of the parties to a marriage (including a marriage which has been dissolved or annulled) to or for the benefit of the other party to the marriage and for the maintenance of the other party, or
(ii)to any person under 21 years of age for his own benefit, maintenance or education, or
(iii)to any person for the benefit, maintenance or education of a person under 21 years of age,
and in respect of which the person making them is entitled otherwise than under this section to make a deduction in computing his income for the year.
(6)The reference in subsection (1) above to a married couple living together shall be construed in accordance with section 282(1), but section 282(2) shall not apply for the purposes of this section.
(7)In this section—
“child of the family”, in relation to the parties to a marriage, means a person under 21 years of age—
(a)who is a child of both those parties, or
(b)who (not being a person who has been boarded out with them by a public authority or voluntary organisation) has been treated by both of them as a child of their family;
“periodical payment” does not include an instalment of a lump sum.”
(2)The following sections shall be inserted at the beginning of Part II of the Taxes Act 1970—
(1)A payment to which this section applies shall not be a charge on the income of the person liable to make it, and accordingly—
(a)his income shall be computed without any deduction being made on account of the payment, and
(b)the payment shall not form part of the income of the person to whom it is made or of any other person.
(2)This section applies to any annual payment made by an individual which would otherwise be within the charge to tax under Case III of Schedule D except—
(a)a payment of interest;
(b)a covenanted payment to charity (within the meaning given by section 434(2) below);
(c)a payment made for bona fide commercial reasons in connection with the individual’s trade, profession or vocation; and
(d)a payment to which section 48(1) of the Finance Act 1977 applies.
(3)This section applies to a payment made by personal representatives (within the meaning given in section 432(4) below) where—
(a)the deceased would have been liable to make the payment if he had not died, and
(b)this section would have applied to the payment if he had made it.
(4)A maintenance payment arising outside the United Kingdom shall not be within the charge to tax under Case V of Schedule D if, because of this section, it would not have been within the charge to tax under Case III had it arisen in the United Kingdom; and for this purpose “maintenance payment” means a periodical payment (not being an instalment of a lump sum) which satisfies the conditions set out in paragraphs (a) and (b) of section 51B(5) below.
(5)No deduction shall be made under section 122(1)(b) below on account of an annuity or other annual payment which would not have been within the charge to tax under Case III of Schedule D if it had arisen in the United Kingdom.
(6)References in subsection (2) above to an individual include references to a Scottish partnership in which at least one partner is an individual.
(1)In this section “qualifying maintenance payment” means a periodical payment which—
(a)is made under an order made by a court in the United Kingdom, or under a written agreement the proper law of which is the law of a part of the United Kingdom,
(b)is made by one of the parties to a marriage (including a marriage which has been dissolved or annulled) either—
(i)to or for the benefit of the other party and for the maintenance of the other party, or
(ii)to the other party for the maintenance by the other party of any child of the family,
(c)is due at a time when—
(i)the two parties are not a married couple living together, and
(ii)the party to whom or for whose benefit the payment is made has not remarried, and
(d)is not a payment in respect of which relief from tax is available to the person making the payment under any provision of the Income Tax Acts other than this section.
(2)Notwithstanding section 51A(1)(a) above but subject to subsections (3) and (4) below, a person making a claim for the purpose shall be entitled, in computing his total income for the year 1987-88, to deduct an amount equal to the aggregate amount of any qualifying maintenance payments made by him which fall due in that year.
(3)The amount which may be deducted under this section by a person in computing his total income for the year 1987-88 shall not exceed £1,370.
(4)Where qualifying maintenance payments falling due in the year 1987-88 are made by a person who also makes other maintenance payments attracting relief for that year, subsection (3) above shall apply as if the limit imposed by it were reduced by an amount equal to the aggregate amount of those other payments.
(5)The reference in subsection (4) above to other maintenance payments attracting relief for the year 1987-88 is a reference to periodical payments which—
(a)are made under an order made by a court (whether in the United Kingdom or elsewhere) or under a written or oral agreement, and
(b)are made by a person—
(i)as one of the parties to a marriage (including a marriage which has been dissolved or annulled) to or for the benefit of the other party to the marriage and for the maintenance of the other party, or
(ii)to any person under 21 years of age for his own benefit, maintenance or education, or
(iii)to any person for the benefit, maintenance or education of a person under 21 years of age,
and in respect of which the person making them is entitled otherwise than under this section to make a deduction in computing his income for the year.
(6)The reference in subsection (1) above to a married couple living together shall be construed in accordance with section 42(1) above, but section 42(2) above shall not apply for the purposes of this section.
(7)In this section—
“child of the family”, in relation to the parties to a marriage, means a person under 21 years of age—
(a)who is a child of both those parties, or
(b)who (not being a person who has been boarded out with them by a public authority or voluntary organisation) has been treated by both of them as a child of their family;
“periodical payment” does not include an instalment of a lump sum.”
(3)This section shall have effect in relation to any payment falling due on or after 15th March 1988 unless it is made in pursuance of an existing obligation.
(4)In subsection (3) above “existing obligation” means a binding obligation—
(a)under an order made by a court (whether in the United Kingdom or elsewhere) before 15th March 1988, or before the end of June 1988 on an application made on or before 15th March 1988;
(b)under a deed executed or written agreement made before 15th March 1988 and received by an inspector before the end of June 1988;
(c)under an oral agreement made before 15th March 1988, written particulars of which have been received by an inspector before the end of June 1988; or
(d)under an order made by a court (whether in the United Kingdom or elsewhere) on or after 15th March 1988, or under a written agreement made on or after that date, where the order or agreement replaces, varies or supplements an order or agreement within this subsection;
but subject to subsection (5) below.
(5)An obligation within subsection (4)(d) above is an existing obligation only if—
(a)it is an obligation to make periodical payments (not being instalments of a lump sum) which are made by a person—
(i)as one of the parties to a marriage (including a marriage which has been dissolved or annulled) to or for the benefit of the other party to the marriage and for the maintenance of the other party, or
(ii)to any person under 21 years of age for his own benefit, maintenance or education, or
(iii)to any person for the benefit, maintenance or education of a person under 21 years of age, and
(b)the order or agreement replaced, varied or supplemented provided for such payments to be made for the benefit, maintenance or, as the case may be, education of the same person.
F1[(5A)The reference in subsection (4)(d) above to an order made by a court, and the reference in subsection (5)(b) above to an order, in each case includes a reference to a [F2maintenance assessment made] F3[F2maintenance calculation or maintenance assessment made respectively] under the Child Support Act 1991 or the Child Support (Northern Ireland) Order 1991.]
(6)Section 351 of the Taxes Act 1988 and section 65 of the Taxes Act 1970 shall not apply to any payment in relation to which this section has effect.
Textual Amendments
F1S. 36(5A) inserted (6.4.1993) by Finance (No. 2) Act 1992 (c. 48), s. 62(2)(6); S.I. 1992/2642, art.2.
F2Words in s. 36(5A) substituted (3.3.2003 for specified purposes) by Child Support, Pensions and Social Security Act 2000 (c. 19), s. 86(1)(a)(2), Sch. 3 para. 9 (with s. 83(6)); S.I. 2003/192, art. 3, Sch.
F3Words in s. 36(5A) substituted (N.I.) (3.3.2003 for specified purposes) by virtue of Child Support, Pensions and Social Security Act (Northern Ireland) 2000 (c. 4), s. 68(1)(2), Sch. 3 para. 9 (with s. 66(6)); S.R. 2003/53, art. 3, Sch.
Modifications etc. (not altering text)
C1S. 36(3) excluded (27.7.1999 with effect in relation to any payment falling due on or after 6.4.2000) by 1999 c. 16, s. 36(7)(8)
The Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
The Whole Act you have selected contains over 200 provisions and might take some time to download.
Would you like to continue?
The Whole Act you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
Latest Available (revised):The latest available updated version of the legislation incorporating changes made by subsequent legislation and applied by our editorial team. Changes we have not yet applied to the text, can be found in the ‘Changes to Legislation’ area.
Original (As Enacted or Made): The original version of the legislation as it stood when it was enacted or made. No changes have been applied to the text.
Point in Time: This becomes available after navigating to view revised legislation as it stood at a certain point in time via Advanced Features > Show Timeline of Changes or via a point in time advanced search.
Geographical Extent: Indicates the geographical area that this provision applies to. For further information see ‘Frequently Asked Questions’.
Show Timeline of Changes: See how this legislation has or could change over time. Turning this feature on will show extra navigation options to go to these specific points in time. Return to the latest available version by using the controls above in the What Version box.
Access essential accompanying documents and information for this legislation item from this tab. Dependent on the legislation item being viewed this may include:
This timeline shows the different points in time where a change occurred. The dates will coincide with the earliest date on which the change (e.g an insertion, a repeal or a substitution) that was applied came into force. The first date in the timeline will usually be the earliest date when the provision came into force. In some cases the first date is 01/02/1991 (or for Northern Ireland legislation 01/01/2006). This date is our basedate. No versions before this date are available. For further information see the Editorial Practice Guide and Glossary under Help.
Use this menu to access essential accompanying documents and information for this legislation item. Dependent on the legislation item being viewed this may include:
Click 'View More' or select 'More Resources' tab for additional information including: