CBTM01020 - Overview and purpose: The purpose of Child Benefit and Guardian’s Allowance

Child Benefit

Child Benefit is a benefit, administered by His Majesty’s Revenue & Customs (HMRC), paid to people who are responsible for, or treated as responsible for children or qualifying young persons. There are two rates of payment:

  • higher rate payable for the eldest or only child or qualifying young person.
  • standard rate payable for all other children or qualifying young persons.

If two children or qualifying young persons in the same household qualify, the higher rate is payable only for the eldest child or qualifying young person.

Where two customers each with a child or qualifying young person are, or start living together in the same household, and before this they were both receiving the higher rate for their eldest child or qualifying young person, the higher rate will only be payable for the eldest child or qualifying young person in that household. This applies regardless of whether each parent continues to claim Child Benefit separately.

Child Benefit is payable to only one person for a particular child or qualifying young person in any one week. Where more than one person satisfies the entitlement conditions, only one of them can be entitled and receive payment. The law provides rules to decide which one of them it will be.

The child or qualifying young person must be present or treated as being present in Great Britain or Northern Ireland in that week, and the claimant both present and ordinarily resident in Great Britain or Northern Ireland.

No one subject to immigration control is entitled to Child Benefit except in special circumstances. Regulations prescribe other circumstances in which Child Benefit cannot be paid.

From 7 January 2013, the High Income Child Benefit Charge was introduced. This means that if a customer or their partner have an individual adjusted net income of more than £60,000, the person with the higher income will be liable to a tax charge on some or all the Child Benefit they, or their partner are entitled to receive.

Where a customer or their partner is liable to the High Income Child Benefit Charge, the Child Benefit customer can either decide to

  • opt not to receive their Child Benefit payments. This means they remain entitled to Child Benefit but do not receive payment and so they, or their partner, do not have to declare the Child Benefit they are entitled to receive as a tax charge, or
  • continue to receive their Child Benefit payments. This means they or their partner will have to declare some or all the Child Benefit they are entitled to receive as a tax charge through the Self-Assessment process.

Where more than one child is included on a Child Benefit award, the Child Benefit customer’s decision to stop or start their Child Benefit payments applies to every child on their award.

The tax charge will be:

From 7 January 2013 to 5 April 2024

1% of the Child Benefit paid for every £100 of income received over £50,000 and up to £60,000 or

A charge equal to the full amount of Child Benefit paid for income over £60,000.

From 6 April 2024

1% of the Child Benefit paid for every £200 of income received over £60,000 and up to £80,000 or

A charge equal to the full amount of Child Benefit paid for income over £80,000.

Guardian's Allowance

Guardian’s Allowance is a tax-free allowance, administered by His Majesty’s Revenue & Customs. It is paid in addition to Child Benefit to people bringing up a child or qualifying young person whose parents have died but, can sometimes be paid when only one parent has died. It is paid at one rate for all children or qualifying young persons.

Guardian’s Allowance is not affected by the High Income Child Benefit Charge which means that although a person can decide not to be paid Child Benefit, if they are entitled to Guardian’s Allowance, payments of Guardian’s Allowance will still be paid.

Deciding entitlement to Child Benefit and Guardian's Allowance

Entitlement is decided by an officer of His Majesty’s Revenue & Customs.