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, has an adjusted net income of more than £60,000 (£50,000 before 6 April 2024). The partner with the higher income is the person who suffers the charge. The charge operates by computing the percentage of child benefit to be clawed back (see below) and adding the resulting tax charge at step 7 of the income tax calculation, see the Proforma income tax calculation guidance note.

From 6 April 2024, the child benefit charge claws back 1% of the child benefit 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 adjusted net income is £80,000 or above. Before 6 April 2024, the charge clawed back 1% of the child benefit for every £100 by which the adjusted net income exceeded £50,000 and full clawback

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+™
  • 22 Oct 2026 13:35

Popular Articles

What are connected companies for loan relationship purposes ― practical approach

What are connected companies for loan relationship purposes ― practical approachBrief overview of the rulesThe loan relationships legislation applies to any ‘money debt’ arising from the lending of money entered into by a company, either as a lender or borrower. The rules are contained in CTA 2009,

20 Apr 2021 16:00 | Produced by Tolley Read more Read more

Non-trading deficits on loan relationships

Non-trading deficits on loan relationshipsOverview of non-trading deficits (NTDs)When a company’s debits on its non-trading loan relationships and derivative contracts in an accounting period exceed the credits on its non-trading loan relationships and derivative contracts in the same period (the

14 Jul 2020 12:17 | Produced by Tolley Read more Read more

Temporary differences

Temporary differencesCalculation of temporary differencesThe temporary difference arising in respect of an asset or liability is calculated by comparing the carrying value of that asset or liability with its tax base.IAS 12 uses the concept of taxable or deductible temporary differences. Whether a

14 Jul 2020 13:49 | Produced by Tolley in association with Steve Collings Read more Read more