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ACCA Applied Skills · Taxation (UK) · Income from employment

Which of the following best describes how the child benefit income tax charge applies when income is between £60,000 and £80,000, according to the tax tables?

The charge is 1% of the child benefit received for every £200 of income over £60,000, applying where income lies between £60,000 and £80,000. It is a percentage of the benefit received, not of the income.

  1. A1% of the child benefit received for every £200 of income over £60,000Correct
  2. B1% of the child benefit received for every £100 of income over £50,000
  3. C1% of the income over £60,000
  4. DThe charge is a fixed 50% of child benefit received

Explanation

The tax tables state that where income is between £60,000 and £80,000, the charge is 1% of the child benefit received for every £200 of income over £60,000. The other options use the wrong threshold, step or base.

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