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The High Income Child Benefit Charge

Published Thursday, October 17, 2019

The High Income Child Benefit Charge provides for Child Benefit to be clawed back through the tax system from families where the highest earner has an income in excess of £50,000 and withdrawn completely at incomes of £60,000 or more.

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The High Income Child Benefit Charge (HICBC), which was introduced in 2013, is collected through self assessment, so that individuals who are liable to pay it are required to file an annual tax return if they do not already do so. Recently there have been concerns about the number of taxpayers who have been charged penalties for failing to register their liability and pay the charge through their tax return.

Rather than pay the HICBC, individuals who have been awarded Child Benefit may make an election not to receive this payment. There have also been concerns that some families have decided simply not to claim Child Benefit, without being aware of the potential impact this may have on their entitlement to contributory benefits.

This note gives a short background to the introduction of the HICBC, before looking at these two issues.

Commons Briefing papers CBP-8631

Author: Antony Seely

Topics: Family benefits, Taxation

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