Barclays 2014 Annual Report Download - page 274

272 I Barclays PLC Annual Report 2014 barclays.com/annualreport
Notes to the financial statements
Performance/return
10 Tax continued
Current tax assets and liabilities
Movements on current tax assets and liabilities were as follows:
2014
£m
2013
£m
Assets 219 252
Liabilities (1,042) (621)
As at 1 January (823) (369)
Income statement (1,402) (2,153)
Other comprehensive income (26) (2)
Corporate income tax paid 1,552 1,558
Other movements 12 143
(687) (823)
Assets 334 219
Liabilities (1,021) (1,042)
As at 31 December (687) (823)
Deferred tax assets and liabilities
The deferred tax amounts on the balance sheet were as follows:
2014
£m
2013
£m
Barclays Group US Inc. (BGUS) tax group 1,588 1,449
US Branch of Barclays Bank PLC (US Branch) 1,591 1,362
UK tax group 461 1,171
Spanish tax group 54 353
Other 436 472
Deferred tax asset 4,130 4,807
Deferred tax liability (262) (373)
Net deferred tax 3,868 4,434
US deferred tax assets in BGUS and the US Branch
The deferred tax asset in BGUS of £1,588m (2013: £1,449m) includes £348m (2013: £156m) relating to tax losses and the deferred tax asset in the
US Branch of £1,591m (2013: £1,362m) includes £479m (2013: £408m) relating to tax losses. Under US tax rules losses can be carried forward and
offset against profits for a period of 20 years. The losses first arose in 2007 and therefore any unused amounts may begin to expire in 2028. The
remaining balances relate primarily to temporary differences for which there is no time limit on recovery. The US Branch deferred tax asset is
stated net of a measurement for UK tax because Barclays Bank PLC is subject to UK tax on the profits of its non-UK branches.
The BGUS tax losses are projected to be fully utilised in 2016 and the US Branch losses in 2018. A 20% reduction in forecast profits of either BGUS
or the US Branch would not extend the recovery period.
UK tax group deferred tax asset
The deferred tax asset in the UK tax group of £461m (2013: £1,171m) includes £245m (2013: £499m) relating to tax losses and tax credits. Tax
losses and tax credits can be carried forward indefinitely in the UK. The remaining balance relates to other temporary differences. Based on profit
forecasts, it is probable that there will be sufficient future taxable profits available against which the temporary differences, losses and tax credits
will be utilised.
Spanish tax group deferred tax asset
The reduction to £54m (2013: £353m) reflects a reclassification of deferred tax assets relating to the Spanish business which was held for sale.
The remaining deferred tax assets relate to retained businesses and are not dependent on future profitability.
Other deferred tax assets
The deferred tax asset of £436m (2013: £472m) in other entities within the Group includes £243m (2013: £157m) relating to tax losses carried
forward.
Of the deferred tax asset of £436m (2013: £472m), an amount of £140m (2013: £114m) relates to entities which have suffered a loss in either the
current or prior year. Recognition is based on profit forecasts which indicate that it is probable that the entities will have future taxable profits
against which the losses and temporary differences can be utilised.