The high income child benefit charge will be introduced from 7 January 2013.
The charge will apply if you or your partner have individual income of more than £50,000 and one of you receives child benefit payments.
The tax charge will then depend on the child benefit entitlement and the level of adjusted net income. If the adjusted net income is between £50,000 and £60,000 then the tax charge will be 1% of the child benefit for every £100 of income between these amounts. Above £60,000 the tax charge will be equal to the full amount of child benefit.
If you think you will be subject to the charge there are two options:
1) Keep receiving child benefit and pay the charge. You will need to complete a tax return and register for self-assessment if not already registered.
2) Opt to stop receiving child benefit. There would be no tax charge and no need to file a tax return (unless required for any other purpose).
For full details please refer to HM Revenue & Customs website via the following link
