
A new measure introduced as part of the recent Budget will allow High Income Child Benefit Charge (HICBC) payments to be offset against Child Benefit overpayments relating to the same period. This will avoid individuals having to repay the overpaid Child Benefit and separately claim a refund of the HICBC paid on it.
The HICBC applies where the Child Benefit recipient or their partner has adjusted net income of £60,000 or more. The charge increases by 1% of the Child Benefit received for every £200 of income above £60,000, reaching 100% where income is £80,000 or more.
Currently, where a Child Benefit overpayment is identified after HICBC has already been paid for the relevant period, HMRC must recover the overpayment separately. The individual who paid the HICBC must then make a separate claim for a refund. Under the new rules, HMRC will be able to offset the HICBC paid against the Child Benefit overpayment. If the tax charge does not cover the full overpayment, the remaining balance will still need to be repaid.
The change will take effect on Royal Assent to Finance Bill 2026-27 and will apply retrospectively from the introduction of the HICBC in January 2013. It will therefore cover relevant overpayments arising since the charge was introduced.
by Admin
Share
STAY IN THE LOOP
Subscribe to our free newsletter.
The two-year time limit for paying tax-free pension death benefits is being removed. This means lump sum death benefits will no longer become taxable simply because they are paid more than two years
The withdrawal charge for Lifetime ISA (LISA) savings used by first-time buyers to purchase a property costing more than the £450,000 property price cap was reduced from 25% to 20% with effect from 29
A new measure introduced as part of the recent Budget will allow High Income Child Benefit Charge (HICBC) payments to be offset against Child Benefit overpayments relating to the same period. This
New obligations requiring taxpayers to correct inaccuracies in tax returns and other documents submitted to HMRC are expected to take effect from 1 April 2028. The measures, announced in the Autumn

