Springing the tax trap: The high income child benefit charge

As tax year end approaches, people's minds invariably turn to tax planning and specifically ways to minimise the amount of tax they need to pay. This will particularly be the case for those that find themselves in what can often be described as ‘tax traps'. These are bands of income where, due to the operation of some benefits and allowances, individuals can find themselves paying a higher amount than their headline rate of tax. Disgruntled The high income child benefit charge (HIBCB) is a very good example of this. It has come under much discussion again recently because of the sin...