For the 2026/27 UK tax year, a parent claiming Child Benefit has adjusted net income of £70,000. Under the High Income Child Benefit Charge rules, how is the charge calculated?
- Because income exceeds £60,000, 100% of the Child Benefit received must be repaid regardless of how far above £60,000 the income is
- No charge applies until adjusted net income reaches £80,000, so at £70,000 the full Child Benefit is kept with no charge at all
- The charge is 1% of the Child Benefit received for every £200 of adjusted net income above £60,000, so at £70,000 (£10,000 over the threshold) the charge equals 50% of the Child Benefit received
- The charge is 1% of the Child Benefit received for every £100 of adjusted net income above £60,000, so at £70,000 the charge equals 100% of the Child Benefit received
Why C? And why not the others?
Correct answer: C. The charge is 1% of the Child Benefit received for every £200 of adjusted net income above £60,000, so at £70,000 (£10,000 over the threshold) the charge equals 50% of the Child Benefit received
The High Income Child Benefit Charge, from 6 April 2024 onward, starts at £60,000 of adjusted net income and withdraws Child Benefit at 1% for every £200 of income above that threshold, reaching a 100% charge at £80,000; at £70,000 the taxpayer is £10,000 over the threshold, and £10,000 divided by £200 gives 50 lots of 1%, so the charge equals 50% of the Child Benefit received, exactly as the correct option states. The option treating any income over £60,000 as an immediate 100% charge is wrong because the withdrawal is gradual across the £60,000-£80,000 band, not an instant cliff edge. The option claiming no charge until £80,000 is wrong because the charge begins accruing as soon as income passes £60,000, well before £80,000. The option using a £100-per-1%-step rate is wrong because that steeper taper applied only before 6 April 2024; the current rule uses £200 per 1%, which is why the threshold band was widened to £60,000-£80,000 rather than the older £50,000-£60,000 range.
Source: GOV.UK: High Income Child Benefit Charge