Aviva 2009 Annual Report Download - page 174

172
Aviva plc Notes to the consolidated financial statements continued
Annual Report and Accounts 2009
13 – Tax
This note analyses the tax charge for the year and explains the factors that affect it.
(a) Tax charged/(credited) to the income statement
(i) The total tax charge/(credit) comprises:
2009 2008
£m £m
Current tax
For this year 617 527
Prior year adjustments (164) (284)
Total current tax 453 243
Deferred tax
Origination and reversal of temporary differences 231 (1,814)
Changes in tax rates or tax laws 2 (7)
Write-down of deferred tax assets 21 95
Total deferred tax 254 (1,726)
Total tax charged/(credited) to income statement (note 13d) 707 (1,483)
(ii) The Group, as a proxy for policyholders in the UK, Ireland, Singapore and Australia (prior to disposal), is required to record
taxes on investment income and gains each year. Accordingly, the tax benefit or expense attributable to UK, Irish, Singapore
and Australian life insurance policyholder returns is included in the tax charge. The tax charge attributable to policyholders’
returns included in the charge above is £217 million (
2008: £1,068 million credit ).
(iii) The tax charge/(credit) can be analysed as follows:
2009 2008
£m £m
UK tax 225 (1,482)
Overseas tax 482 (1)
707 (1,483)
(iv) Unrecognised tax losses and temporary differences of previous years were used to reduce current tax expense and deferred tax
expense by £59 million and £10 million respectively
(2008: £139 million and £19 million respectively) .
(v) Deferred tax charged/(credited) to the income statement represents movements on the following items:
2009 2008
£m £m
Long-term business technical provisions and other insurance items (876) 591
Deferred acquisition costs 261 224
Unrealised gains/(losses) on investments 963 (1,706)
Pensions and other post-retirement obligations (72) 16
Unused losses and tax credits (182) (413)
Subsidiaries, associates and joint ventures 12 (199)
Intangibles and additional value of in-force long-term business (21) 30
Provisions and other temporary differences 169 (269)
Total deferred tax charged/(credited) to income statement 254 (1,726)