Financial Statements
Notes to the Accounts
17 Deferred taxation
Deferred tax is calculated on temporary differences under the liability method using a tax rate of 28% (2007: 30%) as described in note 8.
The movement on deferred tax is as shown below:
| 1 April 2007 £m |
Acquisition £m |
(Credited) expensed to income £m |
(Credited) expensed to reserves £m |
31 March 2008 £m |
|
|---|---|---|---|---|---|
| Property and investment revaluations | 160 | (42) | (25) | 93 | |
| Other timing differences | 4 | 4 | |||
| Intangible assets | 15 | (4) | 11 | ||
| 179 | (46) | (25) | 108 |
| 1 April 2006 £m |
Acquisition £m |
(Credited) expensed to income £m |
(Credited) expensed to reserves £m |
31 March 2007 £m |
|
|---|---|---|---|---|---|
| Property and investment revaluations | 1,216 | 151 | (1,181) | (26) | 160 |
| Capital allowances | 124 | 2 | (126) | ||
| Other timing differences | (29) | 23 | 10 | 4 | |
| Intangible assets | 20 | (5) | 15 | ||
| 1,331 | 153 | (1,289) | (16) | 179 |
Under the REIT regime development properties which are sold within three years of completion do not benefit from tax exemption. At 31 March 2008 the value of properties under development is £1,806m (2007: £1,220m) and if these properties were to be sold and tax exemption was not available the tax arising would be £75m (2007:£100m). No provision is made for this amount as the Group has no current plans to sell these properties.
