The child benefit charge on ‘high-income’ families applied from 7 January 2013.

A taxpayer (T) is liable to the charge if either T or T’s partner has adjusted income in excess of £50,000 and either is entitled to child benefit.

The charge is the ‘appropriate percentage’ of the total child benefit received in the fiscal year.

Where the adjusted income is £60,000, the appropriate percentage is 100%.

Where a partner’s income is in excess of £60,000, it may be preferable to disclaim the benefit in order to avoid the charge.

If the claimant decides to elect not to receive the benefit because the expected income is over £60,000 and subsequently finds that this is not the case, the claimant can revoke the election.

Also, SI 2612/2012 Child Benefit and Child Tax Credit (Miscellaneous Amendments) Regulations 2012 updates the provisions that exclude a claimant from eligibility to child benefit where their right of residence is of a specified type.

It states this is where 'the right of a person who requires that right of residence in order that a British citizen is not deprived of the genuine enjoyment of the substance of the rights attaching to the status of a European Union citizen'.

For more information, visit the 'Related documents' section on this page.