Financial Statements
Notes to the Accounts
8 Taxation
| 2008 £m |
2007 £m |
|
|---|---|---|
| Tax (income) expense | ||
| Current tax | ||
| UK corporation tax (30%) | 3 | (8) |
| Foreign tax | 1 | 3 |
| 4 | (5) | |
| Adjustments in respect of prior years | (4) | 4 |
| Total current tax (income) expense | (1) | |
| REIT conversion charge | 277 | |
| Deferred tax on income and revaluations | (46) | (1,289) |
| Group total taxation (net) | (46) | (1,013) |
| Tax reconciliation | ||
| (Loss) profit on ordinary activities before taxation | (1,609) | 1,440 |
| Less: loss (profit) attributable to funds and joint ventures | 306 | (459) |
| Group (loss) profit on ordinary activities before taxation | (1,303) | 981 |
| Tax on (loss) profit on ordinary activities at UK corporation tax rate of 30% (2007: 30%) | (391) | 294 |
| Effects of: | ||
 REIT conversion charge |
277 | |
| REIT conversion on investment gains |
(1,458) | |
| REIT conversion on capital allowance provisions |
(134) | |
| REIT exempt income and gains |
390 | (10) |
| Goodwill impairment and amortisation of intangibles |
4 | 31 |
| Tax losses and other timing differences |
(45) | 19 |
| Expenses not deductible for tax purposes |
(36) | |
| Adjustments in respect of prior years |
(4) | 4 |
| Group total taxation | (46) | (1,013) |
Tax attributable to underlying profits for the year ended 31 March 2008 is £8m (2007: £31m). The UK corporation tax rate will change to 28% as from 1 April 2008. This is not anticipated to have a material effect. Corporation tax payable at 31 March 2008 was £25m (2007: £283m) as shown in note 15.
