Home / Glossary / High Income Child Benefit Charge

What is High Income Child Benefit Charge?

Last verified 31 October 2026

The High Income Child Benefit Charge is an Income Tax charge on a person whose individual income is over £60,000 when they or their partner receive Child Benefit. You pay back 1% of the Child Benefit for every £200 of income over £60,000, and all of it at £80,000.

Why it matters to landlords

Income here means adjusted net income: total taxable income, including savings interest and dividends, before Personal Allowances and after reliefs such as pension contributions and Gift Aid. Rental profit is taxable income, so a landlord on a £52,000 salary can cross the threshold after adding rental profit. If both partners are over, the one with the higher income pays.

You pay through PAYE or through Self Assessment, which you need if you already file a return, for example because of rental income. You can instead opt out of receiving payments, so no charge arises, and still keep National Insurance credits.

Example

Ben earns £52,000 and has a rental profit of £12,000, so his adjusted net income is £64,000. That is £4,000 over the threshold, which is 20 steps of £200, so he repays 20% of the Child Benefit his household receives. If it is £2,500 a year, the charge is £500.

Rental income tax calculator →

Related terms

Sources

Try VoxaMTD free

VoxaMTD records your rent and expenses as digital records and sends your quarterly updates to HMRC, with landlord calculators built in. Try VoxaMTD free, no card needed.

Start for Free →

More landlord tax terms: Landlord tax glossary