How the charge works
For every £200 of adjusted net income above £60,000, you repay 1% of the Child Benefit received. At £80,000 or more, the charge equals the full benefit. Adjusted net income includes salary, rental profit, savings and dividends, minus things like pension contributions and Gift Aid.
Example
A parent earns £56,000 and has £10,000 of rental profit before £5,000 of mortgage interest. Their adjusted net income is £66,000, not £61,000, because the interest isn't deducted. That's £6,000 over the threshold, so they repay 30% of the family's Child Benefit.
Ways to reduce it
- Personal pension contributions: £6,000 gross would bring income back to £60,000 in the example.
- Gift Aid donations.
- Genuine ownership changes between partners, if the lower earner really owns more. See joint ownership.
- Claiming all allowable expenses. See 12 legal ways to reduce tax.
Should you still claim Child Benefit?
Usually yes, even if the charge takes it all back. Claiming protects National Insurance credits towards the State Pension for a non-working parent. You can choose not to receive payments while keeping the claim.
Frequently asked questions
Does rental income count for the Child Benefit charge?
Yes. Rental profit is part of adjusted net income, and because of Section 24 it's counted before mortgage interest.
Sources
- GOV.UK: High Income Child Benefit Charge
- GOV.UK: Tax relief for residential landlords, how it's worked out
Sources last checked 10 November 2026. See all our sources and how we keep pages up to date.