|
|
|
|
|
|
|
|
2003 |
|
2002 |
|
2001 |
|
|
£m |
|
£m |
|
£m |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| United
Kingdom: |
|
|
|
|
|
|
| Corporation
tax at 30% |
447 |
|
275 |
|
690 |
|
| Taxation
on the group’s share of results of associates |
– |
|
2 |
|
6 |
|
| Taxation
on the group’s share of results of joint ventures |
– |
|
– |
|
42 |
|
| Prior
year adjustments |
12 |
|
– |
|
(185 |
) |
| Non-UK
taxation: |
|
|
|
|
|
|
| Current |
47 |
|
23 |
|
24 |
|
| Taxation
on the group’s share of results of associates |
81 |
|
50 |
|
33 |
|
| Taxation
on the group’s share of results of joint ventures |
– |
|
34 |
|
146 |
|
| Prior
year adjustments |
(26 |
) |
(7 |
) |
(20 |
) |
|
|
|
|
|
|
|
| Total
current taxation |
561 |
|
377 |
|
736 |
|
| Deferred
taxation charge (credit) at 30% |
|
|
|
|
|
|
| Origination
and reversal of timing differences |
(29 |
) |
34 |
|
87 |
|
| Prior
year adjustments |
(73 |
) |
32 |
|
(111 |
) |
|
|
|
|
|
|
|
| Total
deferred taxation |
(102 |
) |
66 |
|
(24 |
) |
|
|
|
|
|
|
|
| Total
tax on profit (loss) on ordinary activities |
459 |
|
443 |
|
712 |
|
|
|
|
|
|
|
|
The
tax credit relating to exceptional items is £139
million (2002 – £143 million credit, 2001
– £22 million charge) of which £nil
(2002 – £nil, 2001 – £12 million
charge) relates to profit on sale of fixed asset investments
and group undertakings, and profit on sale of property
fixed assets.
A
tax charge on recognised gains and losses not included
in the profit and loss account of £16 million
(2002 – £11 million, 2001 – £29
million) related to exchange movements offset in reserves.
In
the year ended 31 March 2001, the loss on ordinary activities
before taxation was £1,031 million, after charging
£3,200 million of goodwill impairment, which is
not an allowable expense for taxation. In the following
table, the effective corporation tax rate is reconciled
to the profit of £2,169 million before this impairment
charge.
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:
|
2003 |
|
2002 |
|
2001 |
|
|
% |
|
% |
|
% |
|
|
|
|
|
|
|
|
| UK
corporation tax rate |
30.0 |
|
30.0 |
|
30.0 |
|
| Non-deductible
depreciation, amortisation and impairment |
0.4 |
|
92.6 |
|
9.0 |
|
| Non-deductible
non-UK losses |
3.3 |
|
17.8 |
|
11.3 |
|
| Higher
taxes on non-UK profits |
0.4 |
|
0.8 |
|
4.0 |
|
| Excess
depreciation over capital allowances |
3.4 |
|
9.7 |
|
0.7 |
|
| Pension
provisions and prepayments |
(3.2 |
) |
(11.5 |
) |
(4.0 |
) |
| Other
timing differences |
0.7 |
|
(0.5 |
) |
(0.7 |
) |
| Lower
effective tax on gain on disposal of fixed asset |
|
|
|
|
|
|
| investments
and group undertakings |
(16.5 |
) |
(66.3 |
) |
(8.3 |
) |
| Higher
(lower) effective tax on gain on disposal of non
qualifying assets |
2.0 |
|
(44.6 |
) |
– |
|
| Prior
year adjustments |
(2.0 |
) |
(0.5 |
) |
(9.5 |
) |
| Other |
(0.8 |
) |
(1.7 |
) |
1.4 |
|
|
|
|
|
|
|
|
| Current
tax – effective corporation tax rate |
17.7 |
|
25.8 |
|
33.9 |
|
| Deferred
taxes on excess depreciation over capital allowances |
(3.4 |
) |
(9.7 |
) |
(0.7 |
) |
| Pension
provisions and prepayments |
3.2 |
|
11.5 |
|
4.0 |
|
| Other
timing differences |
(0.7 |
) |
0.5 |
|
0.7 |
|
| Prior
year adjustments |
(2.3 |
) |
2.2 |
|
(5.1 |
) |
|
|
|
|
|
|
|
| Total
tax – effective corporation tax rate |
14.5 |
|
30.3 |
|
32.8 |
|
|
|
|
|
|
|
|
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 2003, the group had overseas corporate tax
losses estimated to be £1.2 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.
|
