Child Benefit Reductions – Know Your Benefit Charge
By Nicki Shilston
Following the Chancellor's initial plans in 2010 for the
removal of child benefit for higher rate tax payers, the 2012
Budget statement confirmed that, with effect from 7 January 2013,
child benefit will be clawed back, partially or fully, where one of
the parties in the family has income for the year which exceeds
£50,000. If you are currently receiving child benefit, may
become entitled to it in the future, or someone else is claiming
child benefit in respect of a child living with you, you should
consider the following to see how the change may affect you.
Does this apply to you?
If you are receiving child benefit and your income, or
partner's income, exceeds £50,000 then a clawback charge
will apply. Also, a charge applies where you or your partner has an
income exceeding £50,000 if you have a child living with you
for whom child benefit is claimed by someone else, if neither
