The budget announced that, with effect from January 2013, child benefit  would be gradually withdrawn from households where one person earns at least £50,000.

The benefit is to be withdrawn at the rate of 1% for every £100 above the threshold.

If anyone earns £60,000 or more, this will eliminate the child benefit.

The benefit itself will remain with the mother, but there will be a “high income child benefit charge” levied on the high earner.

Please contact us if you wish to discuss this change.