How does the budget affect child benefit?
Child benefit will be withdrawn through a new income tax charge which will come into effect on 7 January 2013. This will be applied to tax payers who receive child benefit and their income or their partner’s income exceeds £50,000.
The withdrawal will be gradual where income falls between £50,000 and £60,000. The amount of the charge will be 1% of the amount of child benefit for every £100 of income that exceeds £50,000. Where income exceeds £60,000 the charge will equal the full amount of the child benefit.