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Published on 11 January 2023

High income child benefit charge – relationship changes

News

If you move in with your partner, or if you separate, then your liability to the high income child benefit charge might be affected. We have recently updated our guidance to help you understand how the charge might be impacted by such a change in circumstances, and what to do when you are completing your tax return in such cases.

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What is the high income child benefit charge?

Child benefit is not taxable. But for some people, receiving child benefit in their household can create an extra tax charge – the high income child benefit charge (HICBC). This tax charge is intended to claw back the child benefit where it is paid to households which have what the government say is a ‘high’ level of income.

Broadly speaking, the HICBC is payable in a tax year where:

  • you have adjusted net income of more than £50,000 for that year, and

  • you, or your partner, claim child benefit in that year.

You can read more about the precise details of the charge and how it is calculated on our main guidance.

If you are liable to pay the HICBC, you must submit a Self Assessment tax return to HMRC for that tax year.

HICBC complexities

In some situations, it can be difficult to understand the extent to which you are liable to HICBC. It is not always clear how the HICBC section of the tax return form should be completed – in particular, at the beginning or end of a relationship with a person who claims child benefit.

We have recently updated our HICBC guidance to help taxpayers understand their liability to HICBC and what to do when filling in their tax return in some of these scenarios. This is a complex area and you might need to take specific advice. It is possible to pay for tax advice from a professional adviser on a one-off basis – you do not need to have a regular ‘accountant’ or tax adviser to get help.

Our guidance updates

We have made the following updates to our HICBC guidance:

  • We have a new page dedicated to HICBC when moving in with a partner. This page includes various examples on how the HICBC should be calculated in this case, and also provides information on what to do when completing your tax return.

  • We have refreshed our guidance page on HICBC issues on separation, to provide further information to consider when completing your tax return if you have separated during the tax year.

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