| Print Page |  |  | |
|
PDF of Notes | |
 |
7 Taxation
2004 £m |
2003 Restated £m |
||
|---|---|---|---|
Current tax |
|||
UK corporation tax (30%) |
13.4 |
10.8 |
|
Foreign tax |
4.1 |
1.6 |
|
17.5 |
12.4 |
||
Adjustments in
respect of prior years |
(17.9) |
7.0 |
|
Total current tax
(credit) charge |
(0.4) |
19.4 |
|
Deferred tax |
|||
Origination and reversal
of timing differences |
3.0 |
3.1 |
|
Tax associated with pension
movements |
2.7 |
0.6 |
|
Total deferred tax charge |
5.7 |
3.7 |
|
Group total taxation |
5.3 |
23.1 |
|
Attributable to joint ventures |
9.2 |
10.6 |
|
Total taxation – effective
tax rate – 7.8% (2003: 19.3%) |
14.5 |
33.7 |
|
Tax reconciliation |
|||
Profit on ordinary activities
before taxation |
186.0 |
174.3 |
|
Less – Share of profit
of joint ventures |
(28.3) |
(47.4) |
|
Group profit on ordinary
activities before taxation |
157.7 |
126.9 |
|
Tax on Group profit on ordinary
activities at UK corporation tax rate of 30% (2003: 30%) |
47.3 |
38.1 |
|
Effects
of: |
Capital
allowances |
(6.8) |
(6.0) |
Tax losses and other timing differences |
(29.3) |
(23.0) |
|
Expenses not deductible for tax
purposes |
6.3 |
3.3 |
|
Adjustments in
respect of prior years |
(17.9) |
7.0 |
|
Group current tax (credit)
charge |
(0.4) |
19.4 |
|
Factors affecting future tax rate
Capital allowances and losses which are available will reduce the current tax
charge below 30%. Capital allowances are claimed on eligible
investment assets. Chargeable gains arising when investment assets are sold
may be reduced by available capital losses. Deferred tax provisions
for capital allowances are expected to be released on sale.
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 £570m (2003: £470m)
after taking account of available losses and provisions. This unprovided
taxation is stated after taking account of the FRS 19 capital allowance deferred
tax provision of £105m (2003: £86m) recorded in the balance sheet
which, as described in note 22, would be expected to be released on sale.
Back to top