If your own individual income is more than £50,000 and you move in or split up with someone who is entitled to receive Child Benefit, this could affect the amount of tax you pay. Find out how this can affect you and what you need to do.
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You may be liable to a tax charge - called the High Income Child Benefit charge - if you have lived with a partner during a tax year and both of the following apply:
If your partner's income is more than yours, they may be liable to the tax charge.
A tax year runs from 6 April to 5 April the following year.
The High Income Child Benefit charge - the basics
If you are married or in a civil partnership (and not separated), the tax charge applies for the whole tax year, even if you were living in different places, for example if your partner works away from home.
You need to find out which of you is liable to the tax charge.
Then you will need to agree between you whether to do one of the following:
To make your decision, you'll need to try to talk to your partner to:
If you are liable to the tax charge, you would only be liable from the date you started living together.
You or your partner might decide later on to stop Child Benefit payments instead of having to pay the tax charge. If so, you will only be liable to the tax charge up to the date your payments stop.
You start living with a partner and child on 6 October 2013. You have an income of more than £60,000. Your partner has a smaller income than you and is entitled to receive Child Benefit of £1,055 for the whole year.
In the tax year 2013-14, you will be liable to a tax charge based on the Child Benefit your partner is entitled to receive for the period from 6 October 2013 through to 5 April 2014 (six months' worth); £1,055 x 6/12 = £527.
If your personal circumstances stay the same in 2014-15 you will be liable to the tax charge based on your partner's entitlement to receive Child Benefit for the whole year.
You will be liable to the High Income Child Benefit charge if, for the tax year, you have (or had) a higher income than your partner and one of the following applies:
You will also be liable if you have (or had) the higher income for the tax year and someone other than your partner claimed Child Benefit for the child who lived with you and your partner.
You can find out about what contributions count by going to the guide 'Child Benefit if your child lives with someone else'.
Unless you are likely to be permanently separated you will be treated as normally living with a partner. Short periods apart, such as a hospital stay, can be ignored.
Child Benefit if your child lives with someone else
Check if you're affected by the High Income Child Benefit charge
Declaring Child Benefit for the High Income charge - the basics
High Income: how to stop or restart your Child Benefit payments
High Income charge: changes in your Child Benefit entitlement
High Income Child Benefit charge: problems getting information from a partner
