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Notes to the financial statementsNotes to the financial statements

Notes to the financial statements

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10. Tax

Tax charged to the income statement in the year

  Year ended
31 March
2009
£m		 Year ended
31 March
2008
£m
Current tax    
UK Corporation Tax at 28% (2008 – 30%)    
– Current year 43 44
– Double tax relief (1) (1)
– Adjustment to prior years – 5
Overseas tax    
– Current year 52 65
– Adjustment to prior years (10) (3)
  84 110
Deferred tax (note 20) 11 (1)
As previously disclosed 95 109
Prior year adjustment (note 1(a)) – (12)
Total tax charged to income statement – as restated (note 1(a)) 95 97
Tax charged to the income statement can be analysed as follows:    
Total tax charged to the income statement 95 97
Tax credit on amortisation and impairment of intangible assets arising on consolidation 22 16
Tax credit on exceptional items – 4
Tax on profit before amortisation and impairment of intangible assets arising on consolidation 117 117

The rate of Corporation Tax in the UK changed to 28% from 1 April 2008.

The Group’s share of profit of associates in the income statement is shown net of tax of £4m (2008 – £3m). There is no tax effect of exceptional items in the current year (2008 – £4m).

The prior year adjustment represents the unwinding of the deferred tax liabilities recognised in respect of the amortisation of separately identifiable intangible assets arising on consolidation (note 1(a)).

Tax charged/(credited) to equity in the year

  Year ended
31 March
2009
£m		 Year ended
31 March
2008
£m
Current tax credit on share-based payments (5) (2)
Current tax credit on exchange adjustments (38) (1)
Net current tax on items recognised in equity (43) (3)
Deferred tax credit on revaluation of available-for-sale investments (1) (2)
Deferred tax charge on share-based payments 4 1
Net deferred tax on items recognised in equity 3 (1)

The Group’s UK tax charge exceeds the UK statutory rate and can be reconciled as follows:

  Year ended
31 March
2009
£m		 Year ended
31 March
2008
£m
Profit before tax 281 275
Tax on profit at the standard rate of Corporation Tax in the UK of 28% (2008 – 30%) 79 83
Expenses not deductible for tax purposes 12 20
Adjustments to deferred tax in respect of prior years 1 (5)
Adjustments in respect of foreign tax rates 15 11
Adjustments to current tax in respect of prior years (10) 2
Adjustments in respect of associates (2) (2)
Tax charge – as previously reported 95 109
Deferred tax – prior year adjustment (note 1(a)) – (12)
Tax charge – as restated (note 1(a)) 95 97
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