Marks and Spencer 2016 Annual Report Download - page 102

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100
MARKS AND SPENCER GROUP PLC
FINANCIAL STATEMENTS
NOTES TO THE FINANCIAL STATEMENTS
CONTINUED
7 INCOME TAX EXPENSE CONTINUED
C Current tax reconciliation
The current tax reconciliation shows the main adjustments made to the Group’s accounting profi ts in order to arrive at its taxable profi ts.
The reconciling items di er from those in note 7B as the e ects of deferred tax timing di erences are ignored below.
2016
£m
2015
£m
Profi t before taxation 488.8 600.0
Notional taxation at standard UK corporation tax rate of 20% (last year: 21%) 97.8 126.0
Disallowable accounting depreciation and other similar items 85.4 86.1
Deductible capital allowances (71.5) (76.9)
Allowable deductions for employee share schemes (3.4) (10.2)
Allowable deductions for employee pension schemes (13.4) (15.6)
Overseas profi ts taxed at rates di erent to those of the UK (4.3) (5.7)
Overseas tax losses where there is no immediate relief 3.7 4.8
Other income and expenses that are not taxable or allowable 7.6 1.9
Adjustments to underlying profi t:
– international store review charges where no tax relief is available 21.0 7.7
– (profi ts)/losses on property disposals (0.5) 0.5
– UK property and investment deductions where no tax relief is available 7.5 0.6
– acquisition of Lima (Bradford) S.à r.l. joint venture (5.4) –
– embedded derivative 4.7 (0.3)
– overseas profi ts taxed at rates di erent to those of the UK (5.2) (0.1)
Current year current tax charge 124.0 118 . 8
Represented by:
UK current year current tax 111.6 106.5
Overseas current year current tax 12.4 12.3
124.0 118 . 8
UK adjustments in respect of prior years (5.6) (7.5)
Overseas adjustments in respect of prior years (0.5) (3.0)
Total current taxation (note 7A) 117. 9 108.3