2021 Autumn Budget Representation – High Income Child Benefit Charge

Published on 29 September 2021

In our 2021 Autumn Budget representation, we repeat our calls for the government to raise the £50,000 threshold for the high income child benefit charge (HICBC) to at least £60,000. We argue that the £50,000 threshold is untenable now it has been overtaken by the higher-rate threshold from 6 April 2021, as basic-rate taxpayers can now be liable to the charge. This is contrary to the original policy intent.

Illustration of a man, woman and child with a pile of coins

We also recommend that the point at which child benefit is fully withdrawn is increased from £60,000 to at least £75,000, in order to mitigate the disproportionate effect of the charge on larger families. 

Finally, we urge the government to make changes to ensure that low-income taxpayers do not lose on out National Insurance credits as a result of not claiming child benefit where the charge is applicable. 

Our submission can be found here.

Contact: Tom Henderson (click here to Contact Us)
(01/10/21)

 

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