Deed Of Covenant |
| A legal document which records the obligation of one individual to pay a specified sum to another for a specified number of years. The individual making the payment deducts tax at the basic rate and thus pays a net amount on which tax relief is obtained. If the recipient is a registered charity the payer can obtain tax relief up to his/her higher rate whilst the charity can claim back the amount deducted. In other words, it is a tax effective way for individuals to give to charity. |
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