The High Income Child Benefit Charge is draining your retirement—here’s the ruthless hack to keep the cash and retire wealthier than ever.
Positive changes since 2024
At least the High Income Charge Benefit Charge isn’t as onerous as it was.
Up until 2024 the income threshold was £50,000 and the benefit was tapered at 1% for every £100. Depending on how many kids you had, your effective marginal tax rate (EMTR) could be 71% or more.
However the higher £60,000 threshold and the taper rate being halved since 2024 has brought that highest EMTR down to 57% for a three-child household.
Still not great. But less ludicrous than before.
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