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103
Financial statements
25 Deferred tax
Deferred tax is provided under the balance sheet liability method using a tax rate of 26% (last year 28%) for UK differences and local tax
rates for overseas differences. See note 7 for details of the changes to the UK corporation tax rate and the impact on the Group.
The movements in deferred tax assets and liabilities (after the offsetting of balances within the same jurisdiction as permitted by IAS 12
– ‘Income Taxes’) during the year are shown below.
Deferred tax assets/(liabilities)
Fixed
assets
temporary
differences
£m
Accelerated
capital
allowances
£m
Pension
temporary
differences
£m
Other
short-term
temporary
differences
£m
Total
UK
deferred
tax
£m
Overseas
deferred
tax
£m
Total
£m
At 29 March 2009 (78.9) (127.3) 28.5 (41.3) (219.0) (4.9) (223.9)
Credited/(charged) to the income statement 4.6 3.6 (19.0) (0.1) (10.9) 2.4 (8.5)
Credited/(charged) to equity – – 71.7 38.2 109.9 (3.3) 106.6
At 3 April 2010 (74.3) (123.7) 81.2 (3.2) (120.0) (5.8) (125.8)
At 4 April 2010 (74.3) (123.7) 81.2 (3.2) (120.0) (5.8) (125.8)
Credited/(charged) to the income statement 10.5 18.9 3.0 7.1 39.5 (3.2) 36.3
Credited/(charged) to equity – – (112.0) 6.1 (105.9) (1.1) (107.0)
At 2 April 2011 (63.8) (104.8) (27.8) 10.0 (186.4) (10.1) (196.5)
The deferred tax liability on fixed assets is stated net of the benefit of capital losses with a tax value of £65.0m (last year £65.5m).
No benefit has been recognised in respect of unexpired trading losses carried forward in overseas jurisdictions with a tax value of
£16.1m (last year £8.8m).
In addition, the Group is claiming UK tax relief for losses incurred by some of its current and former European subsidiaries. In light of the
continuing litigation no asset has been recognised in respect of these claims.
No deferred tax has been recognised in respect of the temporary differences arising on investments in overseas subsidiaries and joint
ventures as the Group is able to control the timing of the reversals of those differences, and it is probable that the temporary differences
will not reverse in the foreseeable future. The aggregate temporary difference in respect of these overseas investments is £93.5m (last
year £95.7m).
26 Ordinary share capital
2011 2010
Shares £m Shares £m
Allotted, called up and fully paid ordinary shares of 25p each
At start of year 1,582,316,581 395.5 1,577,794,919 394.4
Shares issued on exercise of share options 2,547,301 0.7 4,521,662 1.1
At end of year 1,584,863,882 396.2 1,582,316,581 395.5
Issue of new shares
2,547,301 (last year 4,521,662) ordinary shares having a nominal value of £0.7m (last year £1.1m) were allotted during the year
under the terms of the Company’s schemes which are described in note 13. The aggregate consideration received was £8.4m
(last year £12.4m).