Income Tax (Earnings and Pensions) Act 2003 section 681F

Alteration of income limit, etc. by Treasury order

Section 681F gives the Treasury the power to amend, by order, key figures used in calculating the high income child benefit charge, and sets out the parliamentary procedure that must be followed.

• The Treasury may change the income limit (£50,000, defined as "L") at which the high income child benefit charge begins to apply, or the divisor amount (defined as "X") used in the formula that calculates the charge
• Any such order takes effect only for tax years beginning after the order is made, so the change must be made before the start of the relevant tax year
• Where the order would increase any person's income tax liability, a draft must be laid before and approved by a resolution of the House of Commons before it can be made (the draft affirmative procedure)
• This mechanism allows the government to adjust the charge thresholds and calculation parameters over time without requiring primary legislation