High income child benefit charge threshold increased to £60,000 from April

The high income child benefit charge (HICBC) threshold will increase to £60 000 from 6 April 2024 the chancellor announced in the Budget. 

In addition the rate at which the HICBC is charged will also be halved from 1% of the child benefit payment for every additional £100 earnt above the threshold to 1% for every £200. This means child benefit will not be withdrawn in full until individuals earn £80 000 or higher.

Overall the government estimates that some 170 000 families will be taken out of paying the tax charge.

Further on the unfairness in how the HICBC is currently charged on an individual basis in that dual income families on £49 000 each (with a household income of £98 000) may not be liable to the HICBC but a single parent earning over £50 000 could – the government plans to administer...