Aviva 2009 Annual Report Download - page 281

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Performance review
Aviva plc Notes to the Company’s financial statements continued
Corporate responsibility
Annual Report and Accounts 2009
Governance
Shareholder information
Financial statements IFRS
Financial statements MCEV
Other information
(iv) Equity compensation plans
All transactions in the Group’s equity compensation plans involve options and awards for ordinary shares of the Company. Full
disclosure of these plans is given in the Group consolidated financial statements, note 29. The cost of such options and awards is
borne by all participating businesses and, where relevant, the Company bears an appropriate charge. As the majority of the charge
to the Company relates to directors’ options and awards, for which full disclosure is made in the Directors’ remuneration report,
no further disclosure is given here on the grounds of immateriality.
D – Tax
(i) Tax credited to income statement
Restated
2009 2008
£m £m
Current tax:
For this year 151 362
Prior year adjustments 7 5
Total current tax 158 367
Deferred tax:
Origination and reversal of timing differences — (9)
Total deferred tax — (9)
Total tax credited to income statement 158 358
(ii) Tax charged to other comprehensive income
No tax was charged or credited to other comprehensive income in 2008 or 2009.
(iii) Tax credited to equity
Tax credited to equity comprises £17 million (2008: £16 million) in respect of coupon payments on the direct capital instrument.
(iv) Tax reconciliation
The tax on the Company’s profit before tax differs from the theoretical amount that would arise using the tax rate of the home
country of the Company as follows:
Restated
2009 2008
£m £m
Profit before tax 413 500
Tax calculated at standard UK corporation tax rate of 28%
(2008: 28.5%) (116) (143)
Adjustment to tax charge in respect of prior years 7 5
Non-assessable dividends 375 512
Disallowable expenses (3) (6)
Unpaid group relief (102) —
Deferred tax asset not recognised — (11)
Other (3) 1
Total tax credited to income statement 158 358
(v) Deferred tax asset
(i) The movement in the net deferred tax asset was as follows:
2009 2008
£m £m
Net asset at 1 January — 9
Amounts charged to profit — (9)
Net asset at 31 December — —
The Company has unrecognised other temporary differences of £nil
(2008: £30 million) .
The taxation of foreign profits and worldwide debt cap rules were enacted in the Finance Act 2009. Under the foreign profits
rules, a dividend exemption was introduced which largely exempts dividends received on or after 1 July 2009 from UK corporation
tax. The Company has applied this legislation in arriving at its tax results for 2009. The worldwide debt cap rules apply from
1 January 2010 and are not expected to apply to the Company due to an exemption for qualifying financial services groups.
Financial statements IFRS