|
The tax credit relating to exceptional
items is £29 million (2003 – £139 million, 2002 – £143
million).
A
tax charge on recognised gains and losses not included in the profit and loss
account of £47 million (2003 – £16 million, 2002 – £11
million) related to exchange movements offset in reserves.
Current tax and total tax on
profit on ordinary activities, differs from the amount computed by applying
the corporation tax rate to profit on ordinary activities before taxation. The
differences were attributable to the following factors:
| |
2004 |
|
2003 |
|
2002 |
|
| % |
% |
% |
|
|
|
|
|
|
|
| UK corporation tax rate |
30.0 |
|
30.0 |
|
30.0 |
|
| Non-deductible depreciation, amortisation
and impairment |
0.9 |
|
0.4 |
|
92.6 |
|
| Non-deductible non-UK losses |
1.6 |
|
3.3 |
|
17.8 |
|
| Higher taxes on non-UK profits |
0.2 |
|
0.4 |
|
0.8 |
|
| Excess depreciation over capital
allowances |
3.2 |
|
3.4 |
|
9.7 |
|
| Pension provisions and prepayments |
(9.9 |
) |
(3.2 |
) |
(11.5 |
) |
| Other timing differences |
(2.8 |
) |
0.7 |
|
(0.5 |
) |
| Lower effective tax on gain on
disposal of fixed asset |
|
|
|
|
|
|
| investments
and group undertakings |
(1.3 |
) |
(16.5 |
) |
(66.3 |
) |
| Higher (lower) effective tax on
gain on disposal of non qualifying assets |
– |
|
2.0 |
|
(44.6 |
) |
| Prior year adjustments |
– |
|
(2.0 |
) |
(0.5 |
) |
| Other |
(3.2 |
) |
(0.8 |
) |
(1.7 |
) |
|
|
|
|
|
|
|
| Current tax – effective
corporation tax rate |
18.7 |
|
17.7 |
|
25.8 |
|
| Deferred taxes on excess depreciation
over capital allowances |
(3.2 |
) |
(3.4 |
) |
(9.7 |
) |
| Pension provisions and prepayments |
9.9 |
|
3.2 |
|
11.5 |
|
| Other timing differences |
2.8 |
|
(0.7 |
) |
0.5 |
|
| Prior year adjustments |
(0.5 |
) |
(2.3 |
) |
2.2 |
|
|
|
|
|
|
|
|
| Total tax – effective
corporation tax rate |
27.7 |
|
14.5 |
|
30.3 |
|
|
|
|
|
|
|
|
Factors that may affect future
tax charges
The group operates in countries
where the tax rate is different to the UK corporate tax rate, primarily the
USA, the Netherlands, the Republic of Ireland, Germany and Spain.
As at
31 March 2004, the group had overseas corporate tax losses estimated to be £1
billion which are not recognised as deferred tax assets. In addition, the group
has unutilised capital losses estimated to be in excess of £10 billion
which were not recognised as deferred tax assets.
|
