A Deed of Covenant to Pay is a written legal agreement between two people where one person agrees to pay the other an amount of money without receiving any benefit in return. In other words, it is a legally enforceable promise to pay money to someone, usually entered into for tax relief.

Please note- you can agree to pay any amount of money under the Deed, however, only certain covenants qualify for tax relief.

The person who makes the payment is called a covenantor. The person receiving the payment is called a covenantee.

The Deed of Covenant to be legally effective must be properly drawn up, signed, witnessed and delivered to the covenantee.

If you are the covenantor, you must not receive any benefit (either directly or indirectly) in return for paying the agreed amount.

A Deed of Covenant is only effective from the date it is made and cannot be backdated. You must enter into the Deed before you make any payments.

Payments must be paid on the dates that are set out in the Deed and for the amount that is specified. You cannot change the amount or frequency of payments during the period of the Deed.

This Deed of Covenant to Pay is in Microsoft Word format, written in plain English, easy to use and edit.