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.
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.
Deed of covenant