|
| 8 Taxation |
|
|
| |
2003 |
2002 |
| |
£m |
£m |
|
| Current tax |
|
|
| UK corporation tax (30%) |
10.8 |
5.6 |
| Foreign tax |
1.6 |
1.8 |
| |
|
| |
12.4 |
7.4 |
| Adjustments in respect of prior years |
7.0 |
(13.5) |
| |
|
| Total current tax charge (credit) |
19.4 |
(6.1) |
| |
|
| Deferred tax |
|
|
| Origination and reversal of timing differences |
3.1 |
22.0 |
| Prior year items |
|
(10.3) |
| |
|
| Total deferred tax charge |
3.1 |
11.7 |
| |
|
| Group total taxation |
22.5 |
5.6 |
| Attributable to joint ventures |
10.6 |
6.3 |
|
| Total taxation – effective tax rate – 19.2% (2002:
6.9%) |
33.1 |
11.9 |
|
| |
| Tax reconciliation |
|
|
| Profit on ordinary activities before taxation |
172.4 |
171.3 |
| Less – Share of profit of joint ventures |
(47.4) |
(20.0) |
|
| Group profit on ordinary activities before taxation |
125.0 |
151.3 |
|
| |
| Tax on group profit on ordinary activities at UK corporation
tax rate of 30% (2002: 30%) |
37.5 |
45.4 |
| Effects of: |
Capital allowances |
(6.0) |
(6.3) |
| |
Tax losses and other timing differences |
(22.4) |
(31.9) |
| |
Expenses not deductible for tax purposes |
3.3 |
0.2 |
| |
Adjustments in respect of prior years |
7.0 |
(13.5) |
|
| Group current tax charge (credit) |
19.4 |
(6.1) |
|
| |
| Factors affecting future tax rate |
|
|
| The level of capital allowances and losses reduce the
current tax charge below 30%. Capital allowances are claimed on eligible
investment assets and calculated on the reducing balance. The availability
of further capital allowances will depend, inter alia, on the
timing of the Group's development programme. In addition where assets
are sold out of the British Land Group the gain arising will initially
be set off against capital losses and so such sales may reduce the
tax rate. |
| |
| Contingent tax |
|
|
| The tax which would arise on the disposal of properties
and investments at the amount at which they are carried in the balance
sheet, and including trading and development surpluses, is estimated
at £470m (2002: £510m) after taking account of available losses and
provisions. Tax losses, which have not been recognised in the Balance
Sheet, have reduced the contingent tax by approximately £100m (2002:
£100m). This unprovided taxation is stated after taking account of
the FRS 19 capital allowance deferred tax provision of £86m (2002:
£83m) recorded in the Balance Sheet which, as described in note17,
would be expected to be released on sale. |
