Summary
1.Section 8 and Schedule 1 impose a new income tax charge on taxpayers whose adjusted net income exceeds £50,000 in a tax year and who are in receipt of child benefit, and to taxpayers whose adjusted net income exceeds £50,000 and whose partner is in receipt of child benefit. In the event that both partners have an adjusted net income that exceeds £50,000, the charge will apply only to the partner with the highest income.
2.The amount of the charge will be 1 per cent of the amount of child benefit for every £100 of income above £50,000. The charge will be on the full amount of child benefit where the individual’s adjusted net income exceeds £60,000.
3.The charge will be called the high income child benefit charge and will come into effect from 7 January 2013.
