High income child benefit tax charge ― advising the taxpayer

Produced by a Tolley Personal Tax expert
Personal Tax
Guidance

High income child benefit tax charge ― advising the taxpayer

Produced by a Tolley Personal Tax expert
Personal Tax
Guidance
imgtext

Introduction

Introduced with effect from 7 January 2013, the high income child benefit charge (HICBC) acts to claw back child benefit payments where the person receiving the child benefit or their partner earns at least £60,000 (£50,000 before 6 April 2024). The partner with the higher income is the person who suffers the charge.

From 6 April 2024, the rate of the income tax charge is 1% for every £200 by which the adjusted net income exceeds £60,000. This means that complete clawback of the child benefit effectively occurs where the earnings are £80,000 or above. Before 6 April 2024, the income tax charge was 1% for every £100 by which the adjusted net income exceeded £50,000 and full clawback occurred from £60,000.

Unless the person entitled to receive the child benefit elects not to receive it, the benefit is made as usual but that person or their partner will suffer the tax charge.

For full details of the tax charge and a discussion of whose income needs to be considered

Continue reading the full document
To gain access to additional expert tax guidance, workflow tools, generative tax AI, and tax research, register for a free trial of Tolley+™
Powered by Tolley+
  • 19 Nov 2025 08:00

Popular Articles

Substantial shareholding exemption ― overview

Substantial shareholding exemption ― overviewThe substantial shareholdings exemption (SSE) provides a complete exemption from the liability to corporation tax on the gains generated from qualifying disposals of shares and interests in shares by qualifying companies. No claim is required. Provided

14 Jul 2020 13:44 | Produced by Tolley Read more Read more

Long service awards

Long service awardsEmployee recognition by an employer can be an important motivational tool, as well as having a positive effect on retention. Most employer awards made to an employee are treated as taxable earnings under ITEPA 2003, s 62 or as a benefit under ITEPA 2003, s 201 because they are

14 Jul 2020 12:11 | Produced by Tolley Read more Read more

VAT registration ― change of VAT registration details

VAT registration ― change of VAT registration detailsVAT registered persons must keep their VAT registration details up to date and notify HMRC of any changes. Failure to notify HMRC by the relevant time could result in a penalty. For guidance regarding penalties for failure to notify please see the

14 Jul 2020 13:57 | Produced by Tolley Read more Read more