Financial Statements
17Deferred taxation
Deferred tax is calculated on temporary differences under the liability method using a tax rate of 28% (2008: 28%) as described in note 8.
The movement on deferred tax is as shown below:
| 1 April 2008 £m |
Credited to income £m |
Credited to reserves £m |
31 March 2009 £m |
|
|---|---|---|---|---|
| Property and investment revaluations | 93 | (46) | (24) | 23 |
| Other timing differences | 4 | 4 | ||
| Intangible assets | 11 | (3) | 8 | |
| 108 | (49) | (24) | 35 | |
| April 2008 £m |
Credited to income £m |
Credited to reserves £m |
31 March 2009 £m |
|
| Property and investment revaluations | 160 | (42) | (25) | 93 |
| Other timing differences | 4 | 4 | ||
| Intangible assets | 15 | (4) | 11 | |
| 179 | (46) | (25) | 108 |
Under the REIT regime development properties which are sold within three years of completion do not benefit from tax exemption. At 31 March 2009 the value of such properties is £1,066m (2008: £1,806m) and if these properties were to be sold and tax exemption was not available the tax arising would be £nil (2008: £75m). No provision is made for this amount as the Group has no current plans to sell these properties.