BT 2014 Annual Report Download - page 147

144 Financial statements
9. Taxation continued
Factors aecting future tax charges
The rate of UK corporation tax changed from 23% to 21% on 1 April 2014 and will change to 20% on 1 April 2015. As deferred tax assets and
liabilities are measured at the rates that are expected to apply in the periods of the reversal, deferred tax balances at 31 March 2014 have been
calculated using a rate of 20%. This reduction has been recognised as a deferred tax credit of £208m and as a specic item in the income statement
(note 8) and a deferred tax expense of £288m in reserves.
Unrecognised tax losses and other temporary dierences
At 31 March 2014 the group had operating losses, capital losses and other temporary dierences carried forward in respect of which no deferred
tax assets were recognised amounting to £21.6bn (2012/13 £22.0bn). The group’s capital losses and other temporary dierences have no expiry
date restrictions. The expiry date of operating losses carried forward is dependent upon the tax law of the various territories in which the losses arose.
Asummary of expiry dates for losses in respect of which restrictions apply is set out below
At 31 March
2014
£m
Expiry of
losses
Restricted losses
Europe 417 2015-2034
Americas 93 2020-2033
Other 20 2015-2024
Total restricted losses 530
Unrestricted losses
Operating losses 3,626 No expiry
Capital losses 17,119 No expiry
Total unrestricted losses 20,745
Other temporary diƪerences 355
Total 21,630
At 31 March 2014 the undistributed earnings of overseas subsidiaries were £8.3bn (2012/13 £11.1bn). No deferred tax liabilities have been
recognised in respect of these unremitted earnings because the group is in a position to control the timing of any dividends from subsidiaries and
hence any tax consequences that may arise.