Part III Income Tax, Corporation Tax and Capital Gains Tax

Chapter I General

Annual payments

37 Maintenance payments under existing obligations:

1

This section applies to any annual payment due in the M1year 1988–89 which—

a

is made in pursuance of an existing obligation under an order made by a court (whether in the United Kingdom or elsewhere) or under a written or oral agreement,

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 payments are made has not remarried, and

d

is within the charge to tax under Case III or Case V of Schedule D, and is not by virtue of Part XV of the Taxes Act 1988 treated for any purpose as the income of the person making it.

2

On making a claim for the purpose a person chargeable to tax in respect of payments to which this section applies shall be entitled, in computing his total income for the year 1988-89, to deduct an amount equal to the aggregate amount of the payments, or £1,490, whichever is less.