27Covenanted payments to charity
(1)In section 671 of the Taxes Act 1988 (revocable settlements allowing release of obligation) in subsection (2) (exceptions to sums payable under such settlements being income of settlor) after “shall not apply” there shall be inserted “in the case of a covenanted payment to charity so long as that power has not been exercised, and in any other case”.
(2)This section shall apply in relation to—
(a)any covenant made on or after 7th May 1992;
(b)any covenant made before that day and in the case of which the power to revoke cannot be exercised before that day.