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Term of the day

child benefit higher income tax charge

Child benefit, which historically had been a universal benefit, is now withdrawn gradually from higher earners. This is being achieved through income tax and applies to any household where a member of that household has an annual income over £50,000. The benefit is withdrawn at 1% for every £100 earned over £50,000 and so those earning £60,000 or more will lose the benefit altogether.

The change applied from 7 January 2013, but does take into account pensions contributions. See the UK child...