National Grid 2007 Annual Report Download - page 56

Download and view the complete annual report

Please find page 56 of the 2007 National Grid annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 86

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86

National Grid Electricity Transmission plc Annual Report and Accounts 2006/07
10. Taxation
Taxation on items charged/(credited) to the income statement
2007
2006
*
£m
£m
United Kingdom
Corporation tax at 30%
136
128
Adjustments in respect of prior years (i)
(15)
(29)
Deferred tax (ii)
8
-
Taxation
129
99
Comprising:
Taxation - excluding exceptional items and remeasurements
131
99
Taxation - exceptional items and remeasurements (note 5)
(2)
-
129
99
* Comparatives have been adjusted to reclassify amounts relating to discontinued operations.
(i) The corporation tax adjustment in respect of prior years does not include any adjustments relating to exceptional items.
(ii) Deferred tax includes an exceptional tax credit of £2m (2006: £nil).
Taxation on items charged/(credited) to equity
2007
2006
£m
£m
Deferred tax credit on revaluation of cash flow hedges
(2)
-
Deferred tax (credit)/charge on actuarial gains/losses
(28)
12
Tax on items recognised in
Consolidated Statement of Recognised Income and Expense
(30)
12
Deferred tax credit on employee share schemes recognised directly in equity
(5)
(3)
(35)
9
The tax charge for the period is higher (2006: lower) than the standard rate of corporation tax in the UK (30%). The differences are
explained below:
2007
2006
*
£m
£m
Profit before taxation
Before exceptional items and remeasurements
431
346
Exceptional items and remeasurements
(16)
1
Profit before taxation from continuing operations
415
347
Profit before taxation multiplied by the rate of corporation tax in the UK
125
104
of 30% (2006: 30%)
Effects of:
Adjustments in respect of current income tax of previous years
(15)
(29)
Adjustments in respect of deferred tax of previous years
15
24
Other
4
-
Total taxation
129
99
%
%
At the effective income tax rate
Before exceptional items and remeasurements
30.3
28.6
Including exceptional items and remeasurements
31.1
28.5
* Comparatives have been adjusted to reclassify amounts relating to discontinued operations.
Factors that may affect future tax charges
The UK rate of corporation tax is expected to decrease from the current rate of 30% to 28% in 2008/09. We are in the process of
evaluating the impact this rate will have on the future tax charge.
- 51 -