Aviva 2014 Annual Report Download - page 161

Aviva plc Annual report and accounts 2014
157
14 – Tax continued
(ii) The Group, as a proxy for policyholders in the UK, Ireland and Singapore, is required to record taxes on investment income and
gains each year. Accordingly, the tax benefit or expense attributable to UK, Irish and Singapore life insurance policyholder returns is
included in the tax charge. The tax charge attributable to policyholder returns included in the charge above is £382 million (2013:
£191 million).
(iii) The tax charge can be analysed as follows:
2014
£m
2013
£m
UK tax 462 76
Overseas tax 521 783
983 859
(iv) Unrecognised tax losses and temporary differences of previous years were used to reduce the current tax expense and deferred
tax expense by £5 million and £nil (2013: £3 million and £57 million), respectively.
(v) Deferred tax charged to the income statement represents movements on the following items:
2014
£m
2013
£m
Long-term business technical provisions and other insurance items (1,209) (24)
Deferred acquisition costs 34 (90)
Unrealised gains/(losses) on investments 1,254 145
Pensions and other post-retirement obligations 76
Unused losses and tax credits 32 112
Subsidiaries, associates and joint ventures 5(2)
Intangibles and additional value of in-force long-term business (7) (6)
Provisions and other temporary differences 175 (77)
Deferred tax charged to income statement from continuing operations 291 64
Deferred tax charged to income statement from discontinued operations
—
187
Total deferred tax charged to income statement 291 251
(b) Tax charged/(credited) to other comprehensive income
(i) The total tax charge/(credit) comprises:
2014
£m
2013
£m
Current tax from continuing operations
In respect of pensions and other post-retirement obligations (77) (15)
In respect of foreign exchange movements (12) 6
(89) (9)
Deferred tax from continuing operations
In respect of pensions and other post-retirement obligations 424 (110)
In respect of unrealised gains on investments 21 8
445 (102)
Tax charged/(credited) to other comprehensive income arising from continuing operations 356 (111)
Tax credited to other comprehensive income arising from discontinued operations
—
(169)
Total tax charged/(credited) to other comprehensive income 356 (280)
(ii) The tax charge attributable to policyholders’ returns included above is £nil (2013: £nil).
Aviva plc Annual report and accounts 2014 |157
IFRS Financial statements