Taxation of Chargeable Gains Act 1992 section 237

Superannuation funds, annuities and annual payments

Section 237 exempts from capital gains tax certain disposals of rights to superannuation benefits and unsecured annual payments under deeds of covenant.

• Disposing of a right to an allowance, annuity, or lump sum from a superannuation fund or scheme does not give rise to a chargeable gain
• The superannuation fund or scheme must be established solely or mainly for persons employed in a profession, trade, undertaking, or employment, and their dependants
• Disposing of a right to annual payments due under a deed of covenant is also exempt, provided those payments are not secured on any property
• The covenant exemption is limited to unilateral binding obligations entered into without consideration, reflecting the voluntary and unsecured nature of the payments