What Is It?
If you or your partner have an individual income over £50,099 p.a. and are in receipt of Child benefit, you may have to pay a tax charge known as the 'High Income Child Benefit Charge'.
Who does this affect?
If your income is between £50,099 p.a. and £60,000 p.a., the income tax charge will be 1% of your Child Benefit for every £100 of income.
The charge will never be more than the amount of Child Benefit you receive.
If your income is over £60,000 p.a., the charge will be equal to your Child Benefit's full amount.
How can we help?
Careful financial planning can reduce the High-Income Child Benefit Tax Charge to zero.
If your income exceeds £50,000 p.a. we can help you regain your Full Child Benefit Allowance and save additional tax on the pension contribution.
What should I do next?
If you would like us to advise you on reclaiming your Child Benefit Allowance, please contact Nick Chaitow in Critchleys Financial Planning.
First published 7 January 2021
Last Updated 7 January 2021
7 January 2021
This is for information purposes only. No action should be taken without seeking specific professional advice. Thank you.
*Critchleys Financial Planning LLP is an appointed representative of Quilter Financial Services Limited (FCA Register number is 440703) and Quilter Mortgage Planning Limited (FCA Register number 440718), Wiltshire Court, Farnsby Street, Swindon. SN1 5AH, which is authorised and regulated by the Financial Conduct Authority.
The permitted business of Quilter Financial Services Limited and Quilter Mortgage Planning Limited is advising on and arranging pensions, investments, mortgages, life assurance and general insurance.
You can check this on the FCA’s Register by visiting the FCA’s website www.FCA.org.uk/register or by contacting the FCA on 0300 500 8082. The FCA address is: 12 Endeavour Square, London. E20 1JN
Find out more about Nick Chaitow