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