HICBC: The High Income Child Benefit Charge Threshold
Will it be increased soon?
POSTED BY HELEN BEAUMONT ON 03/02/2021 @ 8:00AM
LITRG, a Low Incomes Tax Reform Group in the United Kingdom, has urged the Government to raise the High Income Child Benefit Charge (HICBC) threshold, helping it to avoid affecting basic-rate taxpayers ...
LITRG is calling for the HICBC threshold to be increased in the Chancellor's budget in March!
There is a possibility of this happening for the first time in April 2021. LITRG claim this goes against the spirit of the original policy and will cause the Government difficulties in raising awareness amongst those who do not consider themselves to be high-income earners.
"The HICBC has been around since 2010!"
The Government believed it would only affect high-income earners from January 2013. The original threshold for the higher rate of tax was £42,475, but since then, this threshold has ridden steadily in line with inflation, but the £50,000 threshold for HICBC has remained the same.
This means that from the 6th of April 2021, the higher-rate tax threshold will overtake it meaning that individuals who pay basic rate tax could be affected.
LITRG is calling for the HICBC threshold to be increased, and that may well be included in the 2021 Budget presented by Chancellor Rishi Sunak on Wednesday the 3rd of March.
Until next time ...
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Helen brings the personal tax planning experience of the top 20 tax companies to Essendon. Formerly of MacIntyre Hudson (with 45 offices nationwide), Helen worked at Chancery for more than 10 years before joining Essendon as the personal tax specialist.
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