Spring Budget 2021

Check your answers

1. From 2023/24 what will be the maximum rate of corporation tax?

A. 19%
B. 21%
C. 23%
D. 25%

2. When is the Lifetime Allowance frozen to?

A. 2023/24
B. 2024/25
C. 2025/26
D. 2026/27

3. Which of these statements is correct?

A. From 1 April 2023, companies with profits between £50,000 and £250,000 will pay tax at a rate between 19% and 25%
B. From 6 April 2023, companies with profits between £50,000 and £250,000 will pay tax at a rate between 19% and 25%
C. From 1 April 2022, companies with profits between £50,000 and £250,000 will pay tax at a rate between 20% and 25%
D. From 1 April 2022, companies with profits between £50,000 and £500,000 will pay tax at a rate between 20% and 25%

4. The Budget has maintained the IHT thresholds at their current levels up to and including 2025/2026. This measure maintains the NRB at £325,000 and the RNRB at £175,000. Also maintained is the RNRB taper, starting at £2 million.

A. When the £2m threshold is exceeded, no RNRB is available
B. When the £2m threshold is exceeded, the RNRB is automatically reduced to £100,000
C. When the £2m threshold is exceeded, the RNRB is reduced by £1 for every £2 of value by which an estate exceeds the threshold
D. When the £2m threshold is exceeded, the RNRB is reduced by £2 for every £1 of value by which an estate exceeds the threshold

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"Prudential" is a trading name of Prudential Distribution Limited. Prudential Distribution Limited is registered in Scotland. Registered Office at Craigforth, Stirling FK9 4UE. Registered number SC212640. Authorised and regulated by the Financial Conduct Authority. Prudential Distribution Limited is part of the same corporate group as the Prudential Assurance Company. The Prudential Assurance Company and Prudential Distribution Limited are direct/indirect subsidiaries of M&G plc, a company incorporated in the United Kingdom. These companies are not affiliated in any manner with Prudential Financial, Inc, a company whose principal place of business is in the United States of America or Prudential plc, an international group incorporated in the United Kingdom.