Notes to the accounts
Notes to the accounts list| Revenue 2005 £m |
Capital 2005 £m |
|
|---|---|---|
| Charge/(credit) in respect of costs allocated to capital profits but utilised against revenue profits | 20 | (20) |
| UK corporation tax at 30% | 1 | – |
| Less relief for foreign tax | (1) | – |
| Foreign tax | 2 | 1 |
| Adjustment in respect of previous periods | – | – |
| Current tax charge/(credit) for the year | 22 | (19) |
| Deferred tax | – | – |
| Charge/(credit) for the year | 22 | (19) |
| 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 | (26) |
| The charge/(credit) for the year all relates to the Company and its subsidiary undertakings. | ||
Factors affecting the charge for the year
| Revenue 2005 £m |
Capital 2005 £m |
|
|---|---|---|
| Return before tax | 156 | 362 |
| Return before tax multiplied by standard UK corporation tax rate of 30% | 47 | 109 |
| Effects of: | ||
| Expenses not deductible for tax purposes | 1 | – |
| Short-term timing differences | (4) | – |
| Current period unutilised tax losses | 2 | – |
| Non-taxable UK dividend income | (31) | – |
| Repatriated profits of overseas group undertakings | 7 | – |
| Foreign tax | 1 | – |
| Foreign tax credits available for double tax relief | (1) | – |
| Capital profits not chargeable because of Investment Trust status | – | (128) |
| Current tax charge/(credit) for the year | 22 | (19) |
| Revenue 2004 (as restated)* £m |
Capital 2004 (as restated)* £m |
|
|---|---|---|
| Return before tax | 136 | 392 |
| Return before tax multiplied by standard UK corporation tax rate of 30% | 41 | 118 |
| Effects of: | ||
| Expenses not deductible for tax purposes | – | – |
| Short-term timing differences | 1 | – |
| 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) | – |
| Capital profits not chargeable because of Investment Trust status | – | (144) |
| Current tax charge/(credit) for the year | 29 | (26) |
| * As restated to reflect the adoption of FRS 17 – Retirement Benefits and UITF 38 – Accounting for ESOP Trusts. See Basis of preparation. | ||
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.