Help your clients avoid the child benefit trap

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Mark Peters, retail pensions and investment proposition director at Zurich UK Life, outlines how advisers can help clients prepare for changes to child benefits.

Child benefit has long been a universal benefit, but thanks to government cuts announced in the Spending Review, this is going to change. Although the details are still to be finalised, it is becoming clear that families with at least one parent who is a higher rate tax (HRT) payer will lose their child benefit. Estimates suggest that this could affect up to 1.5 million families and save £2.5bn. In terms of the hard facts and figures, weekly child benefit of £20.30 for the eldest child and £13.40 for each subsequent child (these amounts are frozen until April 2014), is payable up to age ...

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