| 2005 | 2004 | ||
|---|---|---|---|
| £m | £m | ||
| Current tax | |||
| UK corporation tax (30%) | (2.5) | 13.4 | |
| Foreign tax | 2.1 | 4.1 | |
| (0.4) | 17.5 | ||
| Adjustments in respect of prior years | (45.1) | (17.9) | |
| Total current tax credit | (45.5) | (0.4) | |
| Deferred tax | |||
| Origination and reversal of timing differences | 0.2 | 3.0 | |
| Tax associated with pension movements | (0.2) | 2.7 | |
| Total deferred tax charge | 5.7 | ||
| Group total taxation | (45.5) | 5.3 | |
| Attributable to joint ventures | 8.6 | 9.2 | |
| Total taxation – effective tax rate: –169.3% (pre-exceptional: 8.5%) (2004: 7.8%) | (36.9) | 14.5 | |
| Pre-exceptional tax charge | 17.1 | 14.5 | |
| Exceptional tax credit (note 5) | (54.0) | ||
| Total tax credit | (36.9) | 14.5 | |
| Tax reconciliation | |||
| Profit on ordinary activities before taxation | 21.8 | 186.0 | |
| Less – Share of profit of joint ventures | (40.3) | (28.3) | |
| Group (loss) profit on ordinary activities before taxation | (18.5) | 157.7 | |
| Tax on Group profit on ordinary activities at UK corporation tax rate of 30% (2004: 30%) | (5.6) | 47.3 | |
| Effects of: | Capital allowances | (9.3) | (6.8) |
| Tax losses and other timing differences | 11.0 | (29.3) | |
| Expenses not deductible for tax purposes | 3.5 | 6.3 | |
| Adjustments in respect of prior years | (45.1) | (17.9) | |
| Group current tax credit | (45.5) | (0.4) | |
Capital allowances and losses which are available will reduce the current tax charge below 30%. Capital allowances are claimed on eligible investment assets. Where a deferred tax asset is recognised for losses carried forward there will be a deferred tax charge when those losses are used. 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.
The unprovided tax, in relation to equity shareholders’ funds of £5,579.3m, which would arise on the disposal of British Land Group properties, investments in joint ventures and other investments, at valuation, after available loss relief, but without recourse to tax structuring is in the region of £780m (2004: £570m).
Adjusted net assets are £5,793.2m and are stated after adding back the FRS 19 provisions of £130.2m (2004: £112.9m) and the surplus on development and trading properties of £83.7m. The unprovided tax, in relation to adjusted net assets, which would arise on the disposal of British Land Group properties, other investments, and share of properties held in joint ventures, at valuation, after available loss relief, but without recourse to tax structuring is in the region of £920m (2004: £680m).