Springing the tax trap: The high income child benefit charge

HIBCB tax trap attracting attention as tax year-end appraoches

clock • 4 min read

Justin Corliss looks at the high income child benefit charge 'tax trap' which advisers should be aware of...

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...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Tax planning

HMRC analyst gets award for IHT reforms role – reports

HMRC analyst gets award for IHT reforms role – reports

Reports prompt outrage from farmers

Jen Frost
clock 25 July 2025 • 2 min read
Government to push ahead with IHT changes for farmers

Government to push ahead with IHT changes for farmers

Farm owners warned there are ‘no quick fixes’

Isabel Baxter
clock 22 July 2025 • 3 min read
Govt 'blows chance' to bin original IHT/pension implementation plans

Govt 'blows chance' to bin original IHT/pension implementation plans

Unused pension funds will fall under IHT scope from April 2027

Jenna Brown
clock 22 July 2025 • 6 min read