Child Benefit and the High Income Charge (HICBC)

Child Benefit is subject to the High Income Child Benefit Charge (HICBC). The charge applies when the higher earner’s adjusted net income exceeds £60,000, and Child Benefit is fully clawed back at £80,000.

How the charge operates

The charge increases as income rises, effectively reducing or eliminating the value of Child Benefit for higher earners.

Common sources of confusion

• The charge is assessed on individual adjusted net income, not household income.

• Child Benefit can still be received even where it is later clawed back via the charge.

• The interaction with other income thresholds is not always obvious.

Why this matters near £100,000

Although HICBC is fully in effect by £80,000, it is often considered alongside other high-income thresholds because multiple rules can apply simultaneously depending on circumstances.

Further analysis

A personalised written analysis can set out how the relevant thresholds and entitlement rules interact in your circumstances.

View the £100k Cliff Edge Report

Related explanations

• Understanding marginal tax rates above £100,000

• £100k income and loss of childcare benefits