High Income Child Benefit charge Coming 2013

Posted on 26th November, 2012

The High Income Child Benefit charge will be introduced from 7 January 2013. You may be liable to this new tax charge if you, or your partner, have an individual income of more than £50,000 and one of you gets Child Benefit or contributions towards the upkeep of a child.

 

You will be affected by the High Income Child Benefit charge if during a tax year any of the following applies to you:

 

* you have an individual income of more than £50,000 and are entitled to receive Child Benefit

* you have an individual income of more than £50,000 and live (or have lived) with a partner who's entitled to receive Child Benefit

* both you and your partner have an income of more than £50,000 per year, you have the higher income and one of you is entitled to receive Child Benefit

 

You will also be affected if during a tax year you have an individual income of more than £50,000 and both of the following apply:

* someone else is entitled to receive Child Benefit for a child who lives with you

* they're entitled because they contribute at least an equivalent amount of Child Benefit towards the child's upkeep, for example pocket money or clothes

 

It doesn't matter if the child that is living with you is not your own child.

 

Your income will generally be your income before tax and deduction of ''Personal Allowance'.

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