BT 2000 Annual Report Download - page 70

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Annual report and Form 20-F 69
8. Interest payable
2000
£m
1999
£m
1998
£m
Interest payable and similar charges in respect of:
Bank loans and overdrafts 87 77 80
Other borrowings (a) 401 343 334
Group 488 420 414
Joint ventures 47 19 2
Associates 40 12 56
Total interest payable 575 451 472
(a) Includes £7 million premium charged in the year ended 31 March 1999 on the early redemption of US$200 million 9
5
Ï/
8
% Guaranteed Debentures 2019
on 16 February 1999.
9. Tax on pro®t on ordinary activities
2000
£m
1999
£m
1998
£m
United Kingdom:
Corporation tax at 30% (1999 ± 31%, 1998 ± 31%) 852 1,200 984
Deferred taxation charge (credit) at 30% (3) 71 17
Taxation on the group's share of results of associates 31 1
Deferred taxation provision released due to reduction in corporation tax rate ±± (25)
Prior year adjustments 4± (2)
Total UK taxation, excluding windfall tax 856 1,272 975
Non-UK taxation:
Current 514 6
Taxation charge on the group's share of results of joint ventures 11 3 1
Taxation charge (credit) on the group's share of results of associates 25 4 (5)
Total corporation and similar taxes 897 1,293 977
Windfall tax ±± 510
Total tax on pro®t on ordinary activities 897 1,293 1,487
The company's charge to the UK windfall tax, imposed on certain privatised companies in July 1997, was paid in two equal
instalments in December 1997 and 1998. The charge was based on the group's pro¢t for the ¢nancial years ended 31 March
1986 to 31 March 1989.
Total tax on pro¢t on ordinary activities, excluding the windfall tax, varied from the amount computed by applying
the corporation tax rate to pro¢t on ordinary activities before taxation. The di¡erences were attributable to the
following factors:
2000
%
1999
%
1998
%
UK corporation tax rate 30.0 31.0 31.0
Non-deductible depreciation and amortisation 2.5 0.6 0.6
Non-deductible non-UK losses 2.7 1.5 1.1
Unprovided deferred taxes on excess capital allowances (2.0) (0.7) (0.9)
Lower effective tax on net foreign exchange gains (1.2) ± ±
Effect of reduction in UK corporation tax rate on deferred tax provision ±(0.1) (0.8)
Lower effective tax on gain in MCI shares (1998 ± MCI merger break up fee) ±(2.4) (0.7)
Lower effective tax on gain on disposal of group undertakings (1.2) ± ±
Other (0.3) 0.2 0.1
Effective corporation tax rate 30.5 30.1 30.4