Vodafone 2000 Annual Report Download - page 45

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Vodafone AirTouch Plc Annual Report & Accounts for the year ended 31 March 2000 43
17 Provisions for liabilities and charges Post
Deferred employment Other
taxation benefits provisions Total
£m £m £m £m
1 April 1999 10 – – 10
Exchange movements (5) – (1) (6)
Acquisitions (note 21) 157 23 60 240
Profit and loss account 13 4 2 19
Transfer to current tax (70) – – (70)
–––––––– –––––––– –––––––– ––––––––
31 March 2000 105 27 61 193
–––––––– –––––––– –––––––– ––––––––
Deferred taxation
The £123m credit to deferred taxation in the profit and loss account (note 5) is in relation to a deferred tax asset of £136m recognised on
the sub-letting of certain US communications towers, offset by a charge of £13m in relation to other short term timing differences.
The net deferred tax (asset)/liability is analysed as follows:
2000 1999
£m £m
Deferred tax on unvested options (193) –
Deferred tax on sub-letting of US communications towers (136) –
Accelerated capital allowances 11 –
Other timing differences 94 10
–––––––– ––––––––
(224) 10
–––––––– ––––––––
Analysed as:
Deferred tax asset (note 12) (329) –
Deferred tax provision 105 10
–––––––– ––––––––
(224) 10
–––––––– ––––––––
The amounts unprovided for deferred taxation are:
2000 1999
Amount Amount
unprovided unprovided
£m £m
Accelerated capital allowances 161 101
Gains subject to rollover relief 77
Other timing differences (92) (10)
–––––– ––––––
76 98
–––––– ––––––
The potential net tax benefit in respect of tax losses carried forward at 31 March 2000 was £16m in United Kingdom subsidiaries
(1999 – £18m) and £51m in international subsidiaries (1999 – £52m). These losses are only available for offset against future
profits arising from the same trade within these companies.
In addition, the Group’s share of losses of United Kingdom and international associated undertakings that are available for offset against
future trading profits in these entities is £Nil and £105m, respectively (1999 – £Nil and £55m, respectively).
Other provisions
Other provisions primarily comprise amounts provided for legal claims.
Notes to the Consolidated Financial Statements continued