Child Benefit Tax Charge explained

In his 2012 Budget, Chancellor George Osborne announced radical changes to the Child Benefit Tax Charge. Ben Walker, editor of Accounting Technician, caught up with AAT‘s tax expert, Michael Steed MAAT, to ask him to explain how the new arrangement will work

It was a rabbit from the hat. In his 2012 Budget, George Osborne initially planned to raise the threshold of the Child Benefit Tax Charge to £42,475, only to backtrack and raise it to £60,000. Either way, it was a controversial proposal.

With the new change set to be implemented from January 2013, we asked AAT’s tax expert, Michael Steed MAAT, for his thoughts on what this new change actually means – and who will be affected the most.

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