High Income Child Benefit Charge (UK, 2025–26)
For 2025–26, the High Income Child Benefit Charge can apply when an individual or their partner receives Child Benefit and the higher adjusted net income exceeds £60,000. The charge is generally 1% of the relevant Child Benefit for each complete £200 of adjusted net income above £60,000, capped at 100% of that benefit. The person with the higher adjusted net income is liable where the conditions apply.
Worked example
A person has adjusted net income of £70,000 and the relevant Child Benefit is £2,000. Assuming that person is the higher-income partner and the charge applies, the £10,000 excess gives 50 complete £200 steps, so the charge is 50% × £2,000 = £1,000.
Common mistake
Using gross income instead of adjusted net income, or charging more than the relevant Child Benefit.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | TX (UK) | Direct | June 2026–June 2027 |