top of page

UK: Tax Changes to High Income Child benefit Charge (HICBC)

Farrell & Farrell

From 6 April 2024 the adjusted net income threshold at which child benefit will begin to be withdrawn will increase from £50k to £60k, the first rise since 2013.

 

Where the benefit was previously withdrawn on a tapered basis in an income band between £50k and £60k, this will now only occur between £60k and £80k at a rate equal to 1% for every £200 of income that is more than £60k.

 

For individuals with income above £80k, the tax charge = the child benefit payment. 

 

New claims to child benefit will be automatically backdated by three months, or to the child’s date of birth (whichever is later).

 

For claims made after 6 April 2024, backdated payments will be treated as if the entitlement fell in the 2024-25 tax year if the backdating would otherwise create a HICBC liability in the 2023-24 tax year.

 

By April 2026, the government plans to introduce a system where benefit assessments will be made on a household basis, rather than an individual basis. This will require significant reform. 


If you have any questions our F&F tax team are happy to help. 


10 views0 comments

Recent Posts

See All

UK: BOE interest rate cut to 4.5%

The Bank of England has today confirmed that interest rates will be cut to 4.5%, from 4.75%. #FarrellAndFarrell #crossbordertaxadvisors...

Comments


FFLOGO.png
FFLOGO3.png
NEW CIOT LOGO copy.png

35 Main Street
Hilltown
Newry
County Down
BT34 5UJ

Tel:      028 4063 0876

Fax:     028 4063 2648

Email:  info@farrellca.com

  • Facebook - Black Circle
  • Twitter - Black Circle
  • LinkedIn - Black Circle

Farrell & Farrell CA Limited (trading as Farrell & Farrell) is registered in NI with registration number NI 639336. Registered with The Chartered Institute of Taxation as a firm of Chartered Tax Advisers. Registered to carry on audit work and regulated for a range of investment business activities by Chartered Accountants Ireland (CAI). Details about our audit registration can be viewed at www.auditregister.org.uk under reference number 3044856.

bottom of page