| The tax charge/(credit) for the year comprises: |
| |
Revenue
2004
£m |
Capital
2004
£m |
| Charge/(credit) in respect of costs allocated to capital profits but utilised against revenue profits |
26 |
(26) |
| UK corporation tax at 30% |
3 |
– |
| Less relief for foreign tax |
(3) |
– |
| Foreign tax |
3 |
– |
| Adjustment in respect of previous periods |
– |
– |
| Current tax charge/(credit) for the year |
29 |
(26) |
| Deferred tax |
– |
1 |
| Charge/(credit) for the year |
29 |
(25) |
| |
|
|
| |
Revenue
2003
£m |
Capital
2003
£m |
| Charge/(credit) in respect of costs allocated to capital profits but utilised against revenue profits |
30 |
(30) |
| UK corporation tax at 30% |
2 |
– |
| Less relief for foreign tax |
(2) |
– |
| Foreign tax |
3 |
(1) |
| Adjustment in respect of previous periods |
(1) |
– |
| Current tax charge/(credit) for the year |
32 |
(31) |
| Deferred tax |
– |
(4) |
| Charge/(credit) for the year |
32 |
(35) |
| The charge/(credit) for the year all relates to the Company and its subsidiary undertakings. |
| |
| Factors affecting the charge for the year The tax charge for the year differs from the standard rate of corporation tax in the UK, currently 30% (2003: 30%), and the differences are explained below: |
| |
Revenue
2004
£m |
Capital
2004
£m |
| Return before tax |
139 |
396 |
| Return before tax multiplied by standard UK corporation tax rate of 30% |
42 |
119 |
| Effects of: |
|
|
| Expenses not deductible for tax purposes |
– |
– |
| Short-term timing differences |
– |
– |
| Current period unutilised tax losses |
4 |
– |
| Non-taxable UK dividend income |
(28) |
– |
| Repatriated profits of overseas group undertakings |
11 |
– |
| Foreign tax |
3 |
– |
| Foreign tax credits available for double tax relief |
(3) |
– |
| Adjustments in respect of previous periods |
– |
– |
| Capital (profits)/losses not (chargeable)/allowable because of Investment Trust status |
– |
(145) |
| Current tax charge/(credit) for the year |
29 |
(26) |
| |
|
|
| |
Revenue
2003
£m |
Capital
2003
£m |
| Return before tax |
172 |
(1,118) |
| Return before tax multiplied by standard UK corporation tax rate of 30% |
52 |
(335) |
| Effects of: |
|
|
| Expenses not deductible for tax purposes |
1 |
– |
| Short-term timing differences |
1 |
– |
| Current period unutilised tax losses |
7 |
– |
| Non-taxable UK dividend income |
(29) |
– |
| Repatriated profits of overseas group undertakings |
– |
– |
| Foreign tax |
3 |
– |
| Foreign tax credits available for double tax relief |
(2) |
– |
| Adjustments in respect of previous periods |
(1) |
– |
| Capital (profits)/losses not (chargeable)/allowable because of Investment Trust status |
– |
304 |
| Current tax charge/(credit) for the year |
32 |
(31) |
| The Group’s investments and capital return are primarily included in the Group’s ultimate parent company, the affairs of which are directed so as to allow it to be approved as an investment trust. As investment trusts are exempt from capital gains tax, the Group’s capital return is largely not taxable. |
| Factors that may affect future tax charges The Group currently has and expects to continue to generate surplus tax losses. A deferred tax asset in respect of these surplus losses is not recognised because their utilisation is considered unlikely in the foreseeable future. |
