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50 National Grid Gas plc Annual Report and Accounts 2009/10
7. Taxation
Taxation on items charged/(credited) to the income statemen
t
The tax charge for the year can be analysed as follows:
Before exceptional items Exceptional items
and remeasurements and remeasurements Total
2010 2009 2010 2009 2010 2009
£m £m £m £m £m £m
United Kingdom
Corporation tax at 28% 196 180 (34) (105) 162 75
Corporation tax adjustment in respect of prior years (5) 105 --(5) 105
191 285 (34) (105) 157 180
Deferred tax 129 110 -24 129 134
Deferred tax adjustment in respect of prior years 2(2) --2(2)
131 108 -24 131 132
Total tax charge/(credit) 322 393 (34) (81) 288 312
Taxation on items (credited)/charged to equit
y
2010 2009
£m £m
Deferred tax (credit)/charge on revaluation of cash flow hedges (18) 14
Tax (credit)/charge recognised in consolidated statement of comprehensive income (18) 14
Deferred tax charge on share-based payments recognised directly in equity -2
(18) 16
Before After Before After
exceptional exceptional exceptional exceptional
items and items and items and items and
remeasure- remeasure- remeasure- remeasure-
ments ments ments ments
2010 2010 2009 2009
£m £m £m £m
Profit before taxation
Before exceptional items and remeasurements 1,043 1,043 690 690
Exceptional items and remeasurements - (154) - (330)
Profit before taxation from continuing operations 1,043 889 690 360
Profit on continuing operations multiplied by the rate of corporation
tax in the UK of 28% (2009: 28%) 292 249 193 101
Effects of:
A
djustments in respect of prior years (3) (3) 103 103
Expenses not deductible for tax purposes 3477
Non-taxable income --(1) (1)
Impact of employee share schemes --22
Other 30 38 89 100
Total taxation from continuing operations 322 288 393 312
% % % %
A
t the effective income tax rate 30.9 32.4 57.0 86.7
The tax charge for the year after exceptional items and remeasurements is higher (2009: higher) than the standard rate of corporation tax in
the UK of 28% (2009: 28%). The differences are explained below: