(1) In this section, "property" does not include any annual or other periodical payment secured by the covenant of the settlor, or by a charge made by the settlor on the whole or any part of the settlor's property or the whole or any part of the settlor's future income, or by both such covenant and such charge.
(2) Where by virtue of an irrevocable instrument property is vested in or held by trustees on such trusts that in any year of assessment section 795 would but for this section apply to the income of such property, the following provisions shall apply:
(a) section 795 shall not apply -
(i) in respect of any part of such income which is in that year of assessment accumulated for the benefit of a person, or
(ii) in respect of income arising in that year of assessment from accumulations of income referred to in subparagraph (i);
(b) whenever in any year of assessment any sum whatever is paid under the trusts of such irrevocable instrument out of -
(ii) the accumul
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