Tesco 2014 Annual Report Download - page 88

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Note 6 Taxation continued
Certain deferred tax assets and liabilities have been offset and analysed as follows:
2014
£m
2013
£m
Deferred tax assets 73 58
Deferred tax liabilities (594) (1,006)
Deferred tax assets/(liabilities) relating to disposal group 20 (8)
(501) (956)
No deferred tax liability is recognised on temporary differences of £4.0bn (2013: £3.6bn) relating to the unremitted earnings of overseas subsidiaries and joint
ventures as the Group is able to control the timing of the reversal of these temporary differences and it is probable that they will not reverse in the foreseeable
future. The deferred tax on unremitted earnings at 22 February 2014 is estimated to be £213m (2013: £159m) which relates to taxes payable on repatriation
and dividend withholding taxes levied by overseas tax jurisdictions. UK tax legislation relating to company distributions provides for exemption from tax for
most repatriated profits, subject to certain exceptions.
Unrecognised deferred tax assets
Deferred tax assets in relation to continuing operations have not been recognised in respect of the following items (because it is not probable that future
taxable profits will be available against which the Group can utilise the benefits):
2014
£m
2013
£m
Deductible temporary differences 27 3
Tax losses 66 52
93 55
As at 22 February 2014, the Group has unused trading tax losses from continuing operations of £398m (2013: £379m) available for offset against future
profits. A deferred tax asset has been recognised in respect of £95m (2013: £162m) of such losses. No deferred tax asset has been recognised inrespect of
the remaining £303m (2013: £217m) due to the unpredictability of future profit streams. Included in unrecognised tax losses are losses of £71m that will
expire in 2018 (2013: £92m in 2017) and £142m that will expire between 2019 and 2034 (2013: £37m between 2018 and 2033). Other losses will be carried
forward indefinitely.
Note 7 Discontinued operations and non-current assets classified as held for sale
2014
£m
2013
£m
Assets of disposal groups*2,160 307
Non-current assets classified as held for sale 327 324
Total assets of the disposal groups and non-current assets classified as held for sale 2,487 631
Total liabilities of the disposal groups*(1,193) (282)
Total net assets classified as held for sale 1,294 349
* The year ending 22 February 2014 represents China and the US, while the year ending 23 February 2013 represents the US.
The non-current assets classified as held for sale consist mainly of properties in the UK and Korea due to be sold within one year.
Other information
Governance Financial statementsStrategic report
Tesco PLC Annual Report and Financial Statements 2014 85