146(1)Sections 727 (exemption for certain annual payments by individuals) and 730 (exemption for foreign maintenance payments) do not apply to—U.K.
(a)any payment falling due before 16th March 1988, or
(b)any payment falling due on or after that date but before 6th April 2000 to which this paragraph applies.
(2)Paragraph (b) of sub-paragraph (1) applies to a payment made in pursuance of an existing obligation (within the meaning of section 36(3) of FA 1988) unless it meets any of conditions A to E.
(3)Condition A is that the payment is treated as income of the payer under Chapter 5 of Part 5 as a result of section 624 or 629.
(4)Condition B is that the payment fell due from a husband to a wife or a wife to a husband at a time after 5th April 1990 when they were living together.
(5)Condition C is that an election is duly made under section 39 of FA 1988 in respect of the payment.
(6)Condition D is that the payment fell due on or after 6th April 1994 and is made—
(a)in pursuance of an obligation within section 36(4)(a) to (c) of FA 1988 that is an obligation under—
(i)an order made by a court,
(ii)a written or oral agreement, or
(iii)a deed executed for giving effect to an agreement, and
(b)for the benefit, maintenance or education of a person (whether or not the person to whom the payment is made) who attained the age of 21 on or before the day on which the payment fell due but after 5th April 1994.
(7)Condition E is that—
(a)the payment is made in pursuance of an obligation within section 36(4)(a) of FA 1988 (existing obligations under certain court orders),
(b)the payment is made for the benefit, maintenance or education of a person (whether or not the person to whom the payment is made) who attained the age of 21 before 6th April 1994, and
(c)section 38 of FA 1988 (treatment of certain maintenance payments under existing obligations) does not apply to the payment.