Aviva 2002 Annual Report Download - page 79

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14 – Tax continued
(b) Long-term business
Tax (credited)/charged in the long-term business technical account comprises:
Restated
2002 2001
£m £m
Current tax
UK corporation tax 382 125
Overseas tax 77 91
Prior year adjustments
United Kingdom 7(30)
Overseas (4) 1
3(29)
462 187
Deferred tax
Origination and reversal of timing differences (676) (935)
Decrease in discount 51 107
(625) (828)
Total tax credited in the long-term business technical account (163) (641)
The total tax (credited)/charged in the long-term business technical account relates to the following:
Parent company and subsidiary undertakings (171) (641)
Associated undertakings 8–
Total tax credited in the long-term business technical account (163) (641)
(c) Factors affecting current tax charge for the year
The tax assessed in the non-technical account is higher than the standard UK corporation tax rate, because of the
following factors:
Non-long-term business
Restated
2002 2001
£m £m
(Loss)/profit on ordinary activities before tax (282) 514
Current tax (credit)/charge at standard UK corporation tax rate of 30% (2001: 30%) (85) 154
Adjustment to tax charge in respect of prior years (2) (1)
Non-assessable dividends (9) (16)
Non-taxable loss/(profit) on the sale of subsidiaries and associates 58 (57)
Non-taxable amortisation of goodwill 21 28
Other disallowable expenses 20 26
Utilisation of brought forward tax losses –(36)
Different local basis of tax on overseas profits 51 55
Deferred tax credit arising from movement in unrealised gains and losses 154 248
Other deferred tax movements 23 20
Deferred tax assets not recognised 96 23
Other items 35 17
Current tax charge for the year (note 14(a)) 362 461
(d) Factors that may affect future tax charges
The deferred tax assets, which have not been recognised due to the uncertainty of their recoverability in the foreseeable future, comprise:
Long-term business Non-long-term business
Restated Restated
2002 2001 2002 2001
£m £m £m £m
Unrealised losses on investments –929 –
Provisions and other timing differences 165 100 90 84
Losses 50 69 17 48
215 178 136 132
The deferred tax assets above are principally in respect of corporate entities which are more likely than not to generate tax losses in the
future. The assets would be recoverable in the event that these entities generate taxable profits.
In addition, the Group has capital losses which may be available to offset future capital gains.
65 Aviva plc
Annual report + accounts 2002