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ATT Budget Representation - High Income Child Benefit Charge

24 January, 2024

The ATT has submitted a Spring Budget 2024 representation on the High Income Child Benefit Charge (HICBC).

In this submission we have called for the Government to uprate the £50,000 threshold from which the HICBC applies, to reflect inflation since the measure was introduced in 2013. In recognition of the likely financial implications of this, we have proposed as an alternative that the HICBC threshold could be aligned with the threshold for higher rate income tax.

Both suggestions would result in basic rate taxpayers no longer being affected by the HICBC, which would realign the measure with its original policy aims of only affecting higher rate taxpayers.  We have also highlighted some tax simplification benefits of matching the HICBC threshold with the higher rate income tax threshold.