The High Income Child Benefit Charge
Post Author:
Anne Melville
Date Posted:
February 27, 2019
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If you receive Child Benefit, it is important to remember that taxpayers with adjusted net income in excess of £50,000 during the tax year are liable to the High Income Child Benefit Charge. If both partners have income above this level, the charge applies to the partner with the higher income.
It is important to consider appropriate strategies to keep each parent’s income below £50,000. If two parents have income of £50,000 each, for example, the household can still receive full Child Benefit. But if one parent receives income of £100,000, and the other none, then all Child Benefit is lost.
Gift Aid payments and pension contributions can reduce adjusted net income for the purposes of the High Income Child Benefit Charge and you may wish to make any such payment before 5 April 2019 to ensure your adjusted income for the year is not in excess of £50,000 for the year.
