Notes to the financial statements
24 Deferred tax
Deferred tax is calculated in full on temporary differences under the liability method using a tax rate of 28% (last year 28%) for UK differences and the local tax rates for overseas differences.
The movements in deferred tax assets and liabilities (after the offsetting of balances within the same jurisdiction as permitted by IAS 12 – ‘Income Taxes’) during the period are shown below. Deferred tax assets and liabilities are only offset where there is a legally enforceable right of offset and there is an intention to settle the balances net.
Deferred tax assets/(liabilities)
|
Fixed
assets
temporary
differences
£m |
Accelerated
capital
allowances
£m |
Pension
temporary
differences
£m |
Other
short-term
temporary
differences
£m |
Total
UK
deferred
tax
£m |
Overseas
deferred tax
£m |
Total
£m |
| At 1 April 2007 |
(90.6) |
(103.2) |
183.5 |
21.9 |
11.6 |
(7.3) |
4.3 |
| Credited/(charged) to the income statement |
13.7 |
(41.4) |
(150.5) |
(12.9) |
(191.1) |
0.4 |
(190.7) |
| Credited/(charged) to equity |
– |
– |
(172.4) |
(15.1) |
(187.5) |
1.8 |
(185.7) |
| At 29 March 2008 |
(76.9) |
(144.6) |
(139.4) |
(6.1) |
(367.0) |
(5.1) |
(372.1) |
| At 30 March 2008 |
(76.9) |
(144.6) |
(139.4) |
(6.1) |
(367.0) |
(5.1) |
(372.1) |
| Credited/(charged) to the income statement |
(2.0) |
17.3 |
(87.0) |
(5.7) |
(77.4) |
(0.2) |
(77.6) |
| Credited/(charged) to equity |
– |
– |
254.9 |
(29.5) |
225.4 |
0.4 |
225.8 |
| At 28 March 2009 |
(78.9) |
(127.3) |
28.5 |
(41.3) |
(219.0) |
(4.9) |
(223.9) |
In arriving at the deferred tax on fixed assets, credit has been taken for capital losses with a tax value of £60.5m (last year £53.0m). No deferred tax is recognised on the unremitted earnings of overseas subsidiaries. As the earnings are continually reinvested by the Group, no tax is expected to be payable to them in the foreseeable future. Undistributed profits of overseas subsidiaries amount to £380.6m (last year £295.1m).
The Group is claiming UK tax relief for losses incurred by some of its current and former European subsidiaries. In light of continuing litigation, no asset has been recognised in respect of these claims.