Resolved,
That—
(1) The following sections shall be inserted at the beginning of Part IX of the Income and Corporation Taxes Act 1988—
"General rule
347A.—(1) A payment to which this section applies shall not be a charge on the income of the person liable to make it, and accordingly—
(2) This section applies to any annual payment made by an individual which would otherwise be within the charge to tax under Case III of Schedule D except—
(3) This section applies to a payment made by personal representatives (within the meaning given in section 701(4)) where—
(4) A maintenance payment arising outside the United Kingdom shall not be within the charge to tax under Case V of Schedule D if, because of this section, it would not have been within the charge to tax under Case III if it had arisen in the United Kingdom; and for this purpose "maintenance payment" means a periodical payment (not being an instalment of a lump sum) which satisfies the conditions set out in paragraphs (a) and (b) of section 347B(5).
(5) No deduction shall be made under section 65(1)(b) on account of an annuity or other annual payment which would not have been within the charge to tax under Case III of Schedule D if it had arisen in the United Kingdom.
Qualifying maintenance payments
347B. — (1) In this section "qualifying maintenance payment" means a periodical payment which—
(2) Notwithstanding section 347A(1)(a) but subject to subsections (3) and (4) below, a person making a claim for the purpose shall be entitled, in computing his total income for a year of assessment, to deduct an amount equal to the aggregate amount of any qualifying maintenance payments made by him which fall due in that year.
(3) The amount which may be deducted under this section by a person in computing his total income for a year of assessment shall not exceed the amount of the difference between the higher (married person's) relief and the lower (single person's) relief under subsection (1) of section 257 as it applies for the year to a person not falling within subsection (2) or (3) of that section.
(4) Where qualifying maintenance payments falling due in a year of assessment are made by a person who also makes other maintenance payments attracting relief for that year, subsection (3) above shall apply as if the limit imposed by it were reduced by an amount equal to the aggregate amount of those other payments.
(5) The reference in subsection (4) above to other maintenance payments attracting relief for a year is a reference to periodical payments which—
(6) The reference in subsection (1) above to a married couple living together shall be construed in accordance with section 282(1), but section 282(2) shall not apply for the purposes of this section.
(7) In this section—
(2) The following sections shall be inserted at the beginning of Part II of the Income and Corporation Taxes Act 1970—
"General rule.
51 (A). —(1) A payment to which this section applies shall not be a charge on the income of the person liable to make it, and accordingly—
(2) This section applies to any annual payment made by an individual which would otherwise be within the charge to tax under Case III of Schedule D except—
(3) This section applies to a payment made by personal representatives (within the meaning given in section 432(4) below) where—
(4) A maintenance payment arising outside the United Kingdom shall not be within the charge to tax under Case V of Schedule D if, because of this section, it would not have been within the charge to tax under Case III if it had arisen in the United Kingdom; and for this purpose "maintenance payment" means a periodical payment (not being an instalment of a lump sum) which satisfies the conditions set out in paragraphs (a) and (b) of section 51 B(5) below.
(5) No deduction shall be made under section 122(1)(b) below on account of an annuity or other annual payment which would not have been within the charge to tax under Case III of Schedule D if it had arisen in the United Kingdom.
Qualifying maintenance payments
51B. — (1) In this section "qualifying maintenance payment" means a periodical payment which—
(2) Notwithstanding section 51A(1)(a) above but subject to subsections (3) and (4) below, a person making a claim for the purpose shall be entitled, in computing his total income for the year 1987–88, to deduct an amount equal to the aggregate amount of any qualifying maintenance payments made by him which fall due in that year.
(3) The amount which may be deducted under this section by a person in computing his total income for the year 1987–88 shall not exceed £1,370.
(4) Where qualifying maintenance payments falling due in the year 1987–88 are made by a person who also makes other maintenance payments attracting relief for that year, subsection (3) above shall apply as if the limit imposed by it were reduced by an amount equal to the aggregate amount of those other payments.
(5) The reference in subsection (4) above to other maintenance payments attracting relief for the year 1987–88 is a reference to periodical payments which—
(6) The reference in subsection (1) above to a married couple living together shall be construed in accordance with section 42(1) above, but section 42(2) above shall not apply for the purposes of this section.
(7) In this section—
(3) This Resolution shall have effect in relation to any payment falling due on or after 15th March 1988 unless it is made in pursuance of an existing obligation.
(4) In paragraph (3) above "existing obligation" means a binding obligation—
but subject to paragraph (5) below.
(5) An obligation within paragraph (4)(d) above is an existing obligation only if—
(6) Section 351 of the Income and Corporation Taxes Act 1988 and section 65 of the Income and Corporation Taxes Act 1970 shall not apply to any payment in relation to which this Resolution has effect.
And it is hereby declared that it is expedient in the public interest that this Resolution should have statutory effect under the provisions of the Provisional Collection of Taxes Act 1968.—[Mr. Lawson.]