Finance Act 1988

38 Maintenance payments under existing obligations: U.K.

(1) This section applies to any annual payment due in the M1 year 1989-90 or any subsequent year of assessment 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 an individual—

(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

(c) is (apart from this section) 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) A payment to which this section applies shall not be a charge on the income of the person liable to make it F1 . . .

F2 (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F2 (3A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F2 (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F2 (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F2 (6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(7) A payment to which this section applies shall be made without deduction of income tax.

F2 (8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F3 (8A) The reference in subsection (1)(a) above to an order made by a court includes a reference to a [F4 maintenance assessment made]F5 [F4 maintenance calculation or maintenance assessment made respectively] under the Child Support Act 1991 or under the Child Support (Northern Ireland) Order 1991.]

(9) No deduction shall be made under section 65(1)(b) [F6 , [F7 or 68(1)(b)]] of the Taxes Act 1988 [F8 or section 355 of the Income Tax (Earnings and Pensions) Act 2003] on account of a payment to which this section applies.

Textual Amendments

F1 Words in s. 38(2) repealed (27.7.1999 with effect in relation to any payment falling due on or after 6.4.2000) by 1999 c. 16, s. 139, Sch. 20 Pt. III(6), note

F2 S. 38(3)-(6)(8) repealed (27.7.1999 with effect in relation to any payment falling due on or after 6.4.2000) by 1999 c. 16, s. 139, Sch. 20 Pt. III(6), note

F3 S. 38(8A) inserted (6.4.1993) by Finance (No. 2) Act 1992 (c. 48), s. 62(3)(6); S.I. 1992/2642, art. 2.

F4 Words in s. 38(8A) 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.

F5 Words in s. 38(8A) 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.

F6 Words in s. 38(9) inserted (16.7.1992 with effect for the year 1992-93 and subsequent years of assessment) by Finance (No. 2) Act 1992 (c. 48), s. 60.

F7 Words in s. 38(9) substituted (22.7.2004) by Finance Act 2004 (c. 12), Sch. 17 para. 10(3)(a)

F8 Words in s. 38(9) inserted (22.7.2004) by Finance Act 2004 (c. 12), Sch. 17 para. 10(3)(b)

Marginal Citations

M1 1989–90 onwards.