Is child benefit taxable?
Answered 17 March 2026
Is Child Benefit Taxable?
The answer has two distinct parts: child benefit is generally exempt from income tax, but a High Income Child Benefit Charge (HICBC) can effectively claw it back for higher earners.
What the law says
1. Child benefit is exempt from income tax
Child benefit is listed in Table B of section 677(1) ITEPA 2003 as a UK social security benefit "wholly exempt from tax." This is confirmed by HMRC guidance which explicitly lists "Child Benefit" among the social security payments that are disregarded when calculating social security income.
2. The High Income Child Benefit Charge (HICBC)
However, a separate income tax charge — the HICBC — applies where income is high. Under section 681B ITEPA 2003, a person ("P") is liable to a charge to income tax for a tax year if:
- P's adjusted net income exceeds £60,000, and
- Either P is entitled to child benefit for a week in the tax year (Condition A), or P's partner is entitled to child benefit and P has the higher adjusted net income (Condition B).
3. Amount of the charge
Under section 681C ITEPA 2003, the charge equals the appropriate percentage of the child benefit received. That percentage is either 100%, or the lower figure determined by the formula:
(ANI – £60,000) ÷ £200 %
where ANI is the person's adjusted net income. This creates a taper: the charge increases gradually between £60,000 and £80,000 adjusted net income, at which point 100% of the child benefit is clawed back.
These thresholds (£60,000 lower limit; £200 divisor producing an £80,000 upper limit) were introduced for 2024-25 and subsequent tax years by Finance Act 2024, replacing the previous £50,000/£100 figures.
4. Opt-out election
Where an election is made under section 13A of the Social Security Administration Act 1992 for child benefit not to be paid (to avoid triggering the HICBC), those amounts are disregarded for the purposes of the charge.
HMRC guidance / practice
- HMRC confirms that child benefit is disregarded as social security income for tax credit and income tax purposes.
- The HICBC was introduced by Finance Act 2012 and first took effect on 7 January 2013; the first Self Assessment year was 2012-13.
- Adjusted net income is defined in section 58 ITA 2007 and can be reduced by, for example, Gift Aid donations and pension contributions, potentially bringing a person below the £60,000 threshold.
- The higher-income partner (whether or not the child benefit claimant) is the one liable for the charge.
Summary
| Situation | Tax treatment |
|---|---|
| Adjusted net income ≤ £60,000 | Child benefit fully exempt — no tax |
| Adjusted net income £60,000–£80,000 | HICBC applies on a taper (partial clawback) |
| Adjusted net income > £80,000 | HICBC equals 100% of child benefit received |
Citation sources
High income child benefit charge Increase in thresholds to £60,000 and £80,000 5 1 In— a section 681B(1)(a) of ITEPA 2003 (liability to high income child benefit charge if person’s adjusted net income exceeds £50,000), and b section 681C(2)(b) of that Act (amount of the charge), in the definition of “L” , for “£50,000” substitute £60,000”. 2 In section 681C(2)(b) of that Act, in the definition of “ X ” (which, in combination with the other parts of the formula, secures that there is a taper in t
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