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

Enterprise investment scheme tax relief

Enterprise investment scheme tax reliefOverview of EIS tax reliefsThe enterprise investment scheme (EIS) offers significant tax reliefs to encourage individuals to invest money in qualifying shares issued by qualifying unquoted companies. The scheme is designed to encourage investment in small,

14 Jul 2020 11:36 | Produced by Tolley Read more Read more

Premiums on the grant or surrender of a lease

Premiums on the grant or surrender of a leasePremiums on the grant of a lease ― outlineWhen a property investor grants a lease, potentially this could be done on the basis that the tenant pays a premium for the initial grant of the lease, in addition to also paying rent over the term of the lease.

14 Jul 2020 12:58 | Produced by Tolley in association with Rob Durrant-Walker of Crane Dale Tax, part of AMS Group Read more Read more

Foreign self-employment

Foreign self-employmentTrading in another jurisdiction involves many issues, only some of which involve taxation. Advice should be taken, not only in relation to tax but on the wider business implications. For an overview of the points to consider for certain jurisdictions see Tolley's Global

14 Jul 2020 11:44 | Produced by Tolley Read more Read more