Carphone Warehouse 2016 Annual Report Download - page 115

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113
7 Tax continued
b) Reconciliation of notional to actual (effective) tax rate
The principal differences between the total tax charge shown above and the amount calculated by applying the standard rate
of UK corporation tax to profit / (loss) before taxation are as follows:
Year ended 30 April 2016 13 months ended 2 May 2015
Headline
£million
Non-
Headline
£million
Statutory
£million
Headline
£million
Non-
Headline
£million
Statutory
£million
Profit / (loss) before taxation 447 (184) 263 376 (89) 287
Tax at UK statutory rate of 20% (2014/15: 21%) 89 (37) 52 79 (19) 60
Differences in effective overseas tax rates 5 — 5 7 (1) 6
A
djustments in respect of prior years (5) (6) (11) (2) — (2)
Items attracting no tax relief or liability 15 16 31 11 5 16
Movement in unprovided deferred tax 2 1 3 (5) — (5)
Effect of change in statutory tax rate 3 — 3 — — —
Other differences 1 — 1 1 — 1
Total tax charge / (credit) 110 (26) 84 91 (15) 76
The effective tax rate on Headline earnings of 25% (2014/15: 24%) has increased compared to the prior year due to the change
in statutory tax rate and certain non-deductible items mainly in the UK.
Although a further reduction in the UK corporation tax rate to 17% from 1 April 2020 has been announced by the UK
Government, this has not been substantively enacted by the balance sheet date and so has not been used in the recognition
of deferred tax balances.
Items attracting no tax relief or liability relate primarily to non-deductible lease exit costs and capital expenditure upon which no
tax deductions are available in respect of capital allowances (2014/15: related primarily to non-deductible lease exit costs).
c) Deferred tax
Accelerated
capital
allowances
£million
Retirement
benefit
obligations
£million
Losses
carried
forward
£million
Other
temporary
differences
£million
Total
£million
A
t 29 March 2014 21 — 3 12 36
Dixons Retail Merger (41) 83 — 58 100
Credited / (charged) directly to income statement 3 — 1 (5) (1)
Credited to equity — 15 — 12 27
A
t 2 May 2015 (17) 98 4 77 162
Charged directly to income statement (7) — (1) (11) (19)
Charged to equity — (13) — (11) (24)
Reclassification — (1) — 1 —
A
t 30 April 2016 (24) 84 3 56 119
Deferred tax comprises the following balances:
30 April
2016
£million
2 Ma
y
2015
£million
Deferred tax assets 234 263
Deferred tax liabilities (115) (101)
119 162
00_DC 2016 Annual Report.pdf 113 11/07/2016 18:34