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Introduction

Introduced with effect from 7 January 2013, the high income child benefit charge (HICBC) acts to clawback 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. See also ‘Practical implications of the 2024/25 changes to the HICBC’ below.

Unless the person entitled to receive the child benefit elects not to receive it, the benefit is made as usual but that