Aviva 2013 Annual Report Download - page 245

Strategic report Governance IFRS Financial statements Other information
Aviva plc
Annual report and accounts 2013
243
Notes to the Company’s financial statements continued
C – Tax
(i) Tax (credited) /charged to the income statement
The total tax credit comprises:
2013
£m
2012
£m
Current tax
For this year (84) (46)
Prior year adjustments (7) (6)
Total current tax (91) (52)
Deferred tax
Origination and reversal of temporary differences (49) (180)
Changes in tax rates or tax laws 24 —
Total deferred tax (25) (180)
Total tax credited to income statement (116) (232)
(ii) Tax charged to other comprehensive income
No tax was charged or credited to other comprehensive income in 2013 or 2012.
(iii) Tax credited to equity
Tax credited to equity comprises £22 million (2012: £18 million) in respect of coupon payments on the direct capital instruments
and fixed rate tier 1 notes.
(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:
2013
£m
2012
£m
Profit before tax 486 384
Tax calculated at standard UK corporation tax rate of 23.25% (2012: 24.5%) 113 94
Adjustment to tax credit in respect of prior years (7) (6)
Non-assessable dividends (337) (388)
Disallowable expenses 13 76
Non-taxable loss on settlement of intra-group loan 17 —
Movement in deferred tax not recognised — (118)
Change in future local statutory tax rate 32 4
Losses surrendered intra-group for nil value 53 106
Total tax credited to income statement (116) (232)
The UK corporation tax rate reduced to 23% from 1 April 2013. Legislation was substantively enacted in July 2013 to reduce the
main rate of UK corporation tax to 21% from 1 April 2014, with a further reduction to 20% from 1 April 2015. The 20% rate has
been used in the calculation of the Company’s deferred tax as at 31 December 2013.
(v) Deferred tax
A deferred tax asset of £205 million, arising in respect of deferred interest, has been recognised in the Company at 31 December
2013 at 20% (2012: £180 million).The Company has unrecognised temporary differences of £54 million (2012: £50 million) to
carry forward indefinitely against future taxable income.
(vi) Current tax assets
Current tax assets recoverable in more than one year are £93 million (2012: £50 million).
D – Other assets
Included in other assets are financial investments of £297 million (2012: £nil) made up of UK Government Bonds which are due to
expire during 2014. These financial investments are valued as Level 1 in the fair value hierarchy described in note 23 to the Group
consolidated financial statements and are classified as other than trading as described in note 27.