|
21.
DEFERRED TAXATION
| |
|
Excess
capital allowances
£m |
|
|
Retirement
benefit obligations
£m |
|
|
Share
based
payments
£m |
|
|
Other
£m |
|
|
Total
£m |
|
|
|
|
At
1 April 2005
|
|
1,968 |
|
|
(1,434 |
) |
|
(7 |
) |
|
(518 |
) |
|
9 |
|
|
Charge
(credit) to income statement
|
|
(16 |
) |
|
41 |
|
|
(13 |
) |
|
132 |
|
|
144 |
|
|
Charge
(credit) to equity
|
|
– |
|
|
629 |
|
|
(5 |
) |
|
(36 |
) |
|
588 |
|
|
|
|
At
31 March 2006
|
|
1,952 |
|
|
(764 |
) |
|
(25 |
) |
|
(422 |
) |
|
741 |
|
|
|
|
Deferred
tax (asset)
|
|
– |
|
|
(764 |
) |
|
– |
|
|
– |
|
|
(764 |
) |
|
Deferred
tax liability
|
|
1,952 |
|
|
– |
|
|
(25 |
) |
|
(422 |
) |
|
1,505 |
|
|
|
|
At
31 March 2006
|
|
1,952 |
|
|
(764 |
) |
|
(25 |
) |
|
(422 |
) |
|
741 |
|
|
|
|
Charge
(credit) to income statement
|
|
144 |
|
|
223 |
|
|
(33 |
) |
|
75 |
|
|
409 |
|
|
Charge
(credit) to equity
|
|
– |
|
|
424 |
|
|
(70 |
) |
|
62 |
|
|
416 |
|
|
|
|
At
31 March 2007
|
|
2,096 |
|
|
(117 |
) |
|
(128 |
) |
|
(285 |
) |
|
1,566 |
|
|
|
|
Deferred
tax (asset)
|
|
– |
|
|
(117 |
) |
|
– |
|
|
– |
|
|
(117 |
) |
|
Deferred
tax liability
|
|
2,096 |
|
|
– |
|
|
(128 |
) |
|
(285 |
) |
|
1,683 |
|
|
|
|
At
31 March 2007
|
|
2,096 |
|
|
(117 |
) |
|
(128 |
) |
|
(285 |
) |
|
1,566 |
|
|
|
At 31 March
2007, £117 million (2006: £764 million)
of the deferred tax asset of £117 million
(2006: £764 million) is expected to be recovered
after more than twelve months. At 31 March 2007, £1,683 million
(2006: £1,505 million) of the deferred tax
liability of £1,683 million (2006: £1,505 million)
is expected to be settled after more than twelve months.
At
31 March 2007 the group had operating losses, capital
losses and other temporary differences carried forward
in respect of which no deferred tax assets were recognised
amounting to £21.1 billion (2006: £21.8
billion). The group’s capital losses and other
temporary differences have no expiry date restrictions.
The expiry date of operating losses carried forward
is dependent upon the tax law of the various territories
in which the losses arise. A summary of expiry dates
for losses in respect of which restrictions apply is
set out below:
| Territory |
|
2007
£m |
|
|
Expiry
of
losses |
|
|
|
|
|
|
|
|
|
Restricted
losses: |
|
|
|
|
|
|
|
Americas |
|
218 |
|
|
2012-2027 |
|
|
Europe |
|
1,226 |
|
|
2007-2022 |
|
|
|
|
|
|
|
|
|
Total
restricted losses |
|
1,444 |
|
|
|
|
|
|
|
|
|
|
|
|
Unrestricted
losses: |
|
|
|
|
|
|
|
Operating
losses |
|
1,026 |
|
|
No
expiry |
|
|
Capital
losses |
|
17,595 |
|
|
No
expiry |
|
|
Other |
|
1,044 |
|
|
No
expiry |
|
|
|
|
|
|
|
|
|
Total
unrestricted losses |
|
19,665 |
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
21,109 |
|
|
|
|
|
|
|
|
|
|
|
At the balance
sheet date, the undistributed earnings of overseas subsidiaries
was £9.3 billion (2006: £8.6 billion).
No deferred tax liabilities have been recognised in
respect of those unremitted earnings because the group
is in a position to control the timing of the reversal
of these temporary differences and it is probable that
such differences will not reverse in the foreseeable
future. Temporary differences arising in connection
with interests in associates and joint ventures for
which deferred tax liabilities have not been recognised
are insignificant.
|
