She was exempt from tax (5)
I believe the answer is:
tessa
'she' is the definition.
I don't understand how the rest of the clue works.
Can you help me to learn more?
(Other definitions for tessa that I've seen before include "Girl's name, forerunner of ISA" , "Dahl or Jowell" , "Woman" , "Tax-exempt special savings account" , "Girl" .)