Tax tip: HICBC

An individual responsible for a child under the age of 16 (or under the age of 20 and in approved education) is entitled to child benefit. If more than one individual has responsibility they must decide who should make the claim.

The benefit is not means tested although there is a high-income child benefit charge (HICBC) where the adjusted net income of the claimant or their partner (whether spouse civil partner or co-habitee) exceeds £50 000 in any tax year.

This charge claws back 1% of the child benefit for every £100 of adjusted income in excess of £50 000 so that all child benefit is reclaimed once adjusted net income reaches £60 000. In this context adjusted net income means net income before the deduction of personal allowances but less the gross amount of any personal pension contributions and gift aid donations....