(1) This section shall apply to any payment made -

(a) to or in respect of an individual who is permanently and totally incapacitated by reason of mental or physical infirmity from maintaining himself or herself, and

(b)

(i) pursuant to the issue of an order to pay under section 38 of the Personal Injuries Assessment Board Act 2003, or

(ii) following the institution by or on behalf of the individual of a civil action for damages,

in respect of personal injury giving rise to that mental or physical infirmity.

(2)

(a) In this subsection -

"relevant gains" means chargeable gains (including allowable losses) within the meaning of the Capital Gains Tax Acts, which accrue to an individual, to or in respect of whom payments to which this section applies are made, from the disposal of -

(a) assets acquired with such payments,

(b) assets acquired with relevant income, or

(c) assets acquired directly or indirectly with the proceeds from the disposal of assets referred to in paragraphs (a) and (b);

"relevant income" means income which arises to an individual, to or in respect of whom payments to which this section applies are made, from the investment -