Aviva 2005 Annual Report Download - page 127

12 – Tax continued
(iii) The tax charge can be analysed as follows:
2005 2004
£m £m
United Kingdom tax 1,150 280
Overseas tax 402 374
1,552 654
(iv) Unrecognised tax losses and temporary differences of previous years were used to reduce current tax expense and deferred tax
expense by £49 million and £33 million, respectively (2004: £148 million and £nil, respectively).
(b) Tax (credited)/charged to equity
(i) The total tax (credit)/charge comprises:
2005 2004
£m £m
Current tax (13) –
Deferred tax (262) 15
Total tax (credited)/charged to equity (275) 15
(ii) The tax credit attributable to policyholders’ returns included in the credit above is £3 million (2004: £nil).
(c) Tax reconciliation
The tax on the Group’s profit before tax differs from the theoretical amount that would arise using the tax rate of the home country of
the Company as follows:
2005 2004
£m £m
Profit before tax 3,450 2,025
Tax calculated at standard UK corporation tax rate of 30% (2004: 30%) 1,035 608
Different basis of tax for UK life insurance 616 217
Adjustment to tax charge in respect of prior years (253) (88)
Non-assessable dividends (26) (30)
Non-taxable (profit)/loss on sale of subsidiaries and associates (4) 12
Disallowable expenses 55 65
Different basis of tax on overseas profits/(losses) 168 (13)
Deferred tax assets not recognised (25) (120)
Other (14) 3
Total tax charged to income statement (note 12a) 1,552 654
Financial statements
Aviva plc 2005
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