Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether he plans use household income to assess payment of the high income child benefit tax charge.
The Government introduced the High Income Child Benefit Charge (HICBC) from January 2013 to ensure that support is targeted at those who need it most. It applies to anyone with an individual income over £50,000, who claims Child Benefit or whose partner claims it, regardless of the make-up of their household.
Basing HICBC on household incomes would mean finding out the incomes of everyone in each of the eight million households eligible for child benefit. This would effectively introduce a new means test, creating significant administrative costs and placing a disproportionate burden on the majority of families who receive Child Benefit.