Deeds of Covenant
A Deed of Covenant is a legally binding written agreement to pay an agreed amount to another person. You must not receive any benefit in return for paying this amount.
If you are the person who makes the payment, you are called a covenantor. If you are the person who receives the payment, you are called a covenantee or beneficiary.
The deed must be properly drawn up, signed, witnessed, sealed and delivered to the covenantee to be legally effective.
You can pay any amount under a deed of covenant. However, only certain covenants qualify for tax relief.
Next: Covenants that qualify for relief