Note 11
11. Tax
Recognised in the income statement
|
2005
£m |
2004
£m |
| Current tax expense |
|
|
| Current year |
6.4 |
5.8 |
| Adjustment for prior years |
0.2 |
(0.6) |
| |
6.6 |
5.2 |
| |
|
|
| Deferred tax expense |
|
|
| Origination and reversal of temporary differences |
0.1 |
2.0 |
| Amortisation of permanent differences |
0.3 |
0.2 |
| Benefit of tax losses recognised |
1.4 |
- |
| Adjustment for prior years |
(0.7) |
- |
| |
1.1 |
2.2 |
| Total income tax expense in income statement |
7.7 |
7.4 |
| Reconciliation of effective tax rate |
2005 |
2005 |
2004 |
2004 |
| Profit before tax |
|
18.4 |
|
16.5 |
| Income tax using the domestic corporation rate |
30% |
5.4 |
30% |
4.8 |
| Effect of tax rates in foreign jurisdictions |
14% |
2.6 |
10% |
1.6 |
| Prior year adjustment |
1% |
0.2 |
-4% |
(0.6) |
| Non-deductible expenses |
4% |
0.7 |
4% |
0.7 |
| Tax-deductible expenses not recognised in the income statement |
-3% |
(0.6) |
-4% |
(0.6) |
| Tax exempt revenues |
-3% |
(0.6) |
8% |
1.3 |
| Tax effect of profit elimination on intra-group stock |
-1% |
(0.1) |
1% |
0.1 |
| Other |
0% |
0.1 |
0% |
0.1 |
| |
42% |
7.7 |
45% |
7.4 |
All of the income tax expense relates to overseas tax. There is no income tax expense relating to the UK as a result of UK losses.
There is no income tax expense relating to significant items as all the significant items relate to the UK, where there is no income tax expense.
There is no deferred tax being recognised directly in equity.
Information correct at 03/05/2006