Income Covenant to person over 65

An income covenant is basically a legal promise to pay another person a set amount per year

If, for example, you enter an income covenant to pay €1,000 a year to a person over 65 years old or a person who is incapacitated

you can claim €1,000 as a deduction against your total income therefore possible saving €410 euros if paying at the higher rate

The above relief is subject to conditions and also whether the person you are paying is liable to tax in their own right