PIM4475 - Property allowance: contents: other considerations: high income child benefit charge
When considering the High Income Child Benefit calculation, regulations refer to an individual’s adjusted net income which is defined at S58 of Income Tax Act (ITA) 2007. The definition is based on an individual’s ‘Net Income’ as defined at S23 ITA 2007 which will be reduced by any amount of the property income allowance that an individual uses.
If an individual is entitled to Full Relief, then they do not need to count the income to which the allowance relates when considering whether they are above the threshold for High Income Child Benefit Charge purposes.
If an individual elects for Partial Relief, then they do not need to count the income covered by the Partial Relief when considering whether they are above the threshold for High Income Child Benefit Charge purposes but the balance of that income has to be counted.
For more information regarding the High Income Child Benefit Charge visit https://www.gov.uk/child-benefit-tax-charge.