The new High Income Child Benefit Charge (HICBC) takes effect from 7 January 2013. It is a tax charge designed to claw back child benefit received by a couple if at least one member of the couple has an income in excess of £50,100. This income threshold is not by reference to the total of the couple but rather to the higher earner of the two. Where the higher earner has an income in excess of £60,000 then all child benefit received is fully clawed back. Where the higher earner has an income between £50,100 and £60,000 then the child benefit is clawed back at a rate of 1% of the child benefit received for every £100 of income above £50,000.

If you would like more information on how these changes to Child Benefit may affect you, please contact David Crossley, on tel: 01925 728234.