What is High Income Child Benefit Charge? UK Definition 2026/27
Quick Answer
A tax charge that claws back child benefit when a parent earns over £60,000.
Definition of High Income Child Benefit Charge
The High Income Child Benefit Charge (HICBC) applies when you or your partner claim Child Benefit and either of you has adjusted net income over £60,000. You repay 1% of the Child Benefit for every £200 of income between £60,000 and £80,000. Above £80,000, all Child Benefit is effectively clawed back.
High Income Child Benefit Charge — Key Facts for 2026/27
| Threshold starts | £60,000 |
| Full clawback | £80,000 |
| Charge rate | 1% per £200 over £60k |
| Paid by | Higher earning partner |
How High Income Child Benefit Charge Works — Example
- 1Partner A income: £70,000
- 2Partner B income: £30,000
- 3Child Benefit received: £2,251 (2 children)
- 4Income over threshold: £10,000
- 5HICBC: 50% of £2,251 = £1,125.50
- 6Net benefit retained: £1,125.50
How High Income Child Benefit Charge Affects Your Tax
HICBC creates complexity but it may still be worth claiming Child Benefit even if fully clawed back - you maintain NI credits and your child gets their NI number at 16. Pension contributions can reduce income below £60,000 to avoid the charge.
Official HMRC Guidance on High Income Child Benefit Charge
For official guidance, refer to HMRC's documentation. Tax rules can change, so always verify current rates and thresholds on gov.uk.
HMRC: High Income Child Benefit ChargeFrequently Asked Questions about High Income Child Benefit Charge
Related Tax Terms
Child Benefit
Tax-free payments for parents raising children, subject to High Income Child Benefit Charge.
Adjusted Net Income
Your total taxable income minus specific deductions, used to calculate allowance tapers.
Self Assessment
The system for reporting income and calculating tax owed to HMRC.
NI Credits
Credits protecting your State Pension record when you cannot work or earn.
Accuracy Note
This information is for guidance only and is based on 2026/27 tax year rates. Tax rules are complex and your circumstances may differ. For personal advice, consult a qualified accountant or tax adviser.