Spring Budget 2024 – High income child benefit charge

The high income child benefit charge (HICBC) operates to claw back child benefit from high income households.

The charge currently applies where the household’s highest earner has adjusted net income exceeding £50,000 in a tax year and where the individual or their partner has claimed child benefit. At present, the HICBC is tapered by one percentage point for every £100 of income above this threshold with a full clawback when income reaches £60,000.

The Chancellor has announced that from 6 April 2024 the threshold at which child benefit begins to be clawed back will be increased to £60,000. Further, the taper will be extended to one percentage point for every £200 of income so that child benefit will only be fully withdrawn when income reaches £80,000.

Furthermore, the Government also announced that with effect from April 2026 they will look to apply the HICBC based on total household income rather than on an individual basis, but no further detail has been released on how this will operate in practice or the relevant thresholds that will apply.

For further Spring Budget 2024 analysis, please click here.

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