HSBC 2009 Annual Report Download - page 409

407
2009 2008
Number
Exercise
price Number
Exercise
price
(000s) US$ (000s) US$
Outstanding at 1 January .......................................................... 2,402 10.66 2,455 10.66
Adjustment for rights issue ....................................................... 354 9.29 – –
Exercised in the year ................................................................. (20) 9.29 (12) 10.66
Expired in the year .................................................................... – 9.29 (41) 10.66
Outstanding and exercisable at 31 December .......................... 2,736 9.29 2,402 10.66
The weighted average share price at the date the share options were exercised was US$9.14 (2008: US$14.65). The
remaining contractual life for options outstanding at the balance sheet date was 2.9 years (2008: 3.9 years).
11 Tax expense
2009 2008 2007
US$m US$m US$m
Current tax
UK Corporation tax ................................................................................................. 206 1,671 1,326
– on current year profit ........................................................................................ 280 1,738 1,372
– adjustments in respect of prior years ................................................................ (74) (67) (46)
Overseas tax ............................................................................................................. 1,847 1,703 3,879
– on current year profit ........................................................................................ 1,826 1,732 3,976
– adjustments in respect of prior years ................................................................ 21 (29) (97)
2,053 3,374 5,205
Deferred tax
Origination and reversal of temporary differences ................................................. (1,672) (504) (1,247)
Effect of changes in tax rates ................................................................................... (10) (89) (35)
Adjustments in respect of prior years ...................................................................... 14 28 (166)
(1,668) (565) (1,448)
Tax expense ............................................................................................................. 385 2,809 3,757
The UK corporation tax rate applying to HSBC Holdings and its subsidiaries was 28 per cent (2008: 30 per cent to 31
March 2008 and 28 per cent thereafter; 2007: 30 per cent). Overseas tax included Hong Kong profits tax of
US$783 million (2008: US$846 million; 2007: US$1,137 million). The Hong Kong tax rate applying to the profits of
subsidiaries assessable in Hong Kong was 16.5 per cent (2008: 16.5 per cent; 2007: 17.5 per cent). Other overseas
subsidiaries and overseas branches provided for taxation at the appropriate rates in the countries in which they
operate.