National Grid 2014 Annual Report Download - page 107

Strategic Report Corporate Governance Financial Statements Additional Information
6. Taxation continued
Taxation included within the statement of financial position
The following are the major deferred tax assets and liabilities recognised, and the movements thereon, during the current and prior
reporting periods:
Accelerated
tax
depreciation
£m
Share-
based
payment
£m
Pensions
and other
post-
retirement
benefits
(restated)1
£m
Financial
instruments
£m
Other net
temporary
differences
£m
Total
(restated)1
£m
Deferred tax (assets)/liabilities
Deferred tax assets at 31 March 2012 (1) (18) (1,173) (98) (702) (1,992)
Deferred tax liabilities at 31 March 2012 5,484 –128 9109 5,730
At 1 April 2012 as previously reported 5,483 (18) (1,045) (89) (593) 3,738
Impact of change in accounting policy1– – (2) – – (2)
At 1 April 2012 (restated) 5,483 (18) (1,047) (89) (593) 3,736
Exchange adjustments 149 –(47) (1) (32) 69
Charged/(credited) to income statement 329 265 68 (23) 441
Charged/(credited) to other comprehensive income and equity – 1 (179) 15 –(163)
Other ––––(6) (6)
At 31 March 2013 (restated) 5,961 (15) (1,208) (7) (654) 4,077
Deferred tax assets at 31 March 2013 (2) (15) (1,362) (16) (777) (2,172)
Deferred tax liabilities at 31 March 2013 5,963 –154 9123 6,249
At 1 April 2013 5,961 (15) (1,208) (7) (654) 4,077
Exchange adjustments (282) –78 –59 (145)
(Credited)/charged to income statement (30) (3) 141 (7) (126) (25)
(Credited)/charged to other comprehensive income and equity –(4) 172 7 – 175
At 31 March 2014 5,649 (22) (817) (7) (721) 4,082
Deferred tax assets at 31 March 2014 (1) (22) (960) (13) (796) (1,792)
Deferred tax liabilities at 31 March 2014 5,650 –143 675 5,874
5,649 (22) (817) (7) (721) 4,082
1. See note 1 on page 92.
Deferred tax assets and liabilities are only offset where there is a legally enforceable right of offset and there is an intention to settle the
balances net. The deferred tax balances (after offset) for statement of financial position purposes consist solely of deferred tax liabilities
of £4,082m (2013: £4,077m).
At the reporting date there were no material current deferred tax assets or liabilities (2013: £nil).
Deferred tax assets in respect of capital losses, trading losses and non-trade deficits have not been recognised as their future recovery
is uncertain or not currently anticipated. The deferred tax assets not recognised are as follows:
2014
£m
2013
£m
Capital losses 274 323
Non-trade deficits 11
Trading losses 511
The capital losses and non-trade deficits that arise in the UK are available to carry forward indefinitely. However, the capital losses can
only be offset against specific types of future capital gains and non-trade deficits against specific future non-trade profits. The trading
losses arising in the US have up to a 20 year carry forward time limit.
The aggregate amount of temporary differences associated with the unremitted earnings of overseas subsidiaries and joint ventures
forwhich deferred tax liabilities have not been recognised at the reporting date is approximately £2,118m (2013: £1,817m). No liability is
recognised in respect of the differences because the Company and its subsidiaries are in a position to control the timing of the reversal
of the temporary differences and it is probable that such differences will not reverse in the foreseeable future. In addition, as a result of
achange in UK tax legislation, which largely exempts overseas dividends received on or after 1 July 2009 from UK tax, the temporary
differences are unlikely to lead to additional tax.
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