BT 1997 Annual Report Download - page 43

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NOTES TO THE FINANCIAL STATEMENTS
43
3. Profit on sale of group undertakings
In the years ended 31 March 1996 and 31 March 1997 the subsidiary undertakings disposed of had a negligible effect on the
group’s operating profit and cash flows and their net assets were immaterial to the group’s financial position.
1997 1996
4. Interest £m £m
Interest payable and similar charges in respect of:
Bank loans and overdrafts (76) (74)
Other borrowings (259) (297)
Total interest payable (335) (371)
Premium on repurchase of bonds (note 15) (60) –
Income from listed investments 12 29
Other interest receivable 194 172
Total interest receivable 206 201
Net interest payable (including premium on repurchase of bonds) (189) (170)
1997 1996
5. Tax on profit on ordinary activities £m £m
United Kingdom:
Corporation tax at 33% 1,135 1,000
Deferred taxation credit at 33% (100) (20)
Taxation on the group’s share of results of associated undertakings –1
Prior year adjustments 1(1)
Total UK taxation 1,036 980
Overseas taxation:
Current 17 8
Taxation on the group’s share of results of associated undertakings 49 39
Total tax on profit on ordinary activities 1,102 1,027
The total tax charge for the year was £45m (1996 – £31m) higher than the result of applying the UK corporation tax rate of 33%
to the group’s profit on ordinary activities. This was primarily due to depreciation on certain tangible fixed assets not deductible
for tax purposes and because tax relief was not wholly available against the premium paid on the repurchase of bonds from HM
Government. The higher tax charge in 1996 occurred mainly due to depreciation on tangible fixed assets not deductible for tax
purposes. Deferred taxation of £28m (1996 – £30m) arising on excess capital allowances and £19m (1996 – £11m) on
associated undertakings’ profits was not provided in the year ended 31 March 1997.
1997 1996
pence pence 1997 1996
6. Dividends per share per share £m £m
Interim dividend paid 7.90 7.45 502 469
Proposed final dividend 11.95 11.25 764 715
Total ordinary dividends 19.85 18.70 1,266 1,184
Special dividend 35.00 –2,244 –
Total dividends 54.85 18.70 3,510 1,184