AITI Chartered Tax Adviser
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Can I claim relief for covenanted income?

You may claim tax relief for money that you have covenanted for the use of, or to the benefit of, an individual who is:

(a) aged 65 or over, or
(b) permanently mentally or physically incapacitated.

The covenant must be payable for a period that exceeds, or may exceed, six years.
The covenanted income is treated as having ceased to be your income; it is now the income of the covenantee. There is no percentage limit on the amount of income that you may covenant in this manner.