Notes to the financial statements
7 Income tax expense
A. Taxation charge
|
2009
£m |
2008
£m |
| Current tax |
|
|
| UK corporation tax at 28% (last year 30%) |
|
|
| – current year |
127.4 |
123.0 |
| – prior years |
(10.7) |
(13.1) |
|
116.7 |
109.9 |
| Overseas current taxation |
5.1 |
7.5 |
| Total current taxation |
121.8 |
117.4 |
| Deferred tax (see note 24) |
|
|
| – current year |
70.1 |
184.0 |
| – prior years |
7.5 |
6.7 |
| Total deferred taxation |
77.6 |
190.7 |
| Total income tax expense |
199.4 |
308.1 |
B. Taxation reconciliation
|
2009
£m |
2008
£m |
| Profit before tax |
706.2 |
1,129.1 |
| Taxation at the standard UK corporation tax rate of 28% (last year 30%) |
197.7 |
338.7 |
| Depreciation, charges and other amounts on non-qualifying fixed assets |
(4.0) |
0.6 |
| Other income and expenses not taxable or deductible |
2.9 |
(1.3) |
| Exceptional costs |
7.5 |
– |
| Overseas profits taxed at lower rates |
(1.5) |
(6.8) |
| Impact of change in UK corporation tax rate |
– |
(16.7) |
| Adjustments to tax charge in respect of prior periods |
(3.2) |
(6.4) |
| Total income tax expense |
199.4 |
308.1 |
The post-exceptional effective tax rate was 28.2% (last year 27.3%) and the pre-exceptional effective tax rate was 27.0% (last year 27.0%). In the prior year, the change in the standard UK corporation tax rate to 28% from April 2008 resulted in a deferred tax credit of £16.7m, reducing the total effective tax rate by 1.5%.