Definition of deed of covenant in English:

deed of covenant

noun

British
  • An agreement to pay a regular amount of money, particularly when this enables the recipient (typically a charity) to reclaim any tax paid by the donor on the amount.

    • ‘A child or other relation can provide a deed of covenant for an older person to assist with nursing home fees and claim income tax relief at their marginal rate on contributions.’
    • ‘‘I remember once I spent a month going round all the company's Swindon offices encouraging people to make their regular donations by deed of covenant instead of just giving deductions from their pay,’ she said.’
    • ‘To protect its investment the Government has also entered into a deed of covenant with the groups stipulating the terms under which State funding has been provided.’
    • ‘From 6 April 2000, where companies pay interest, dividends, royalties, and amounts under deeds of covenant, the amount of tax to be withheld will be 22 per cent.’
    legal document, contract, legal agreement, indenture, instrument
    View synonyms

Pronunciation:

deed of covenant

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