401(1)Amend section 38 (maintenance payments under existing obligations: 1989-90 onwards) as follows.
(2)In subsection (1) for paragraph (c) substitute—
“(c)is (apart from this section) within a charge to tax under Chapter 7 of Part 5 of the Income Tax (Trading and Other Income) Act 2005 (annual payments not otherwise charged) and is not, by virtue of Chapter 5 of that Part (settlements), treated for any purpose as the income of the person making it.”
(3)In subsection (9) for the words from “65(1)(b)” to “1988” substitute “839 of the Income Tax (Trading and Other Income) Act 2005 (annual payments payable out of relevant foreign income)”.