Notes to the financial statements

for the year ended 31 March 2012

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10 Taxation

Analysis of tax charge in the year

The charge based on the profit for the year comprises:

Consolidated Notes 2012
£’000
2011
£’000
UK corporation tax:
– adjustment in respect of prior years (484)
Total current tax (484)
UK deferred tax:
Origination and reversal of timing differences in respect of:
– profit for the year 9,137 9,356
– change in rate 1,066 1,353
– adjustment in respect of prior years (822) (617)
– credit in respect of intangible asset amortisation (56) (2,287)
– charge in respect of retirement benefit obligation 4,070 2,970
Total deferred tax 25 13,395 10,775
Total taxation charge for the year 13,395 10,291

Factors affecting tax charge for the year
Consolidated 2012
£’000
2011
£’000
Profit before taxation 51,122 32,912
Profit before taxation at the standard rate of corporation tax in the UK of 26% (2011: 28%) 13,292 9,215
Effects of:
– permanent differences (141) 824
– adjustments relating to prior year corporation tax (484)
– adjustments relating to prior year deferred tax (822) (617)
– change in rate reflected in the deferred tax asset 1,066 1,353
Total taxation charge for the year 13,395 10,291

Factors affecting the current and future tax charges

As a result of the change in the UK main corporation tax rate from 26% to 24% that was enacted substantively at the balance sheet date and that became effective from 1 April 2012, the relevant deferred tax balances have been remeasured. Further reductions to the UK corporation tax rate were announced in the March 2012 Budget. The changes, which we expect to be enacted separately each year, propose to reduce the rate by 1% per annum to 22% by April 2014. The changes have not been enacted substantively at the balance sheet date and, therefore, are not recognised in the financial statements.

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