CIOT reports on impact of HICBC debate
Released 06 September 2019
The Chartered Institute of Taxation (CIOT) has reported on a Parliamentary representation made by a tax adviser MP calling for the high income child benefit charge (HICBC) penalty suspension to be extended.
South Thanet MP Craig Mackinlay led a Westminster Hall debate, calling for an extension of the penalty suspension to those people impacted by the withdrawal of child benefit for higher earners. In particular, Mackinlay expressed concern that the charge was not linked to overall family income, the measure for most Department for Work and Pensions (DWP) benefits. He also noted the impact of ‘fiscal drag’ on the number of families opting-out of child benefit payments. Because the level at which payments are clawed back has not increased since 2013, the number of ‘opt-outs’ has increased from 397,000 to 516,000.
Read the full CIOT report.