Barclays 2003 Annual Report Download - page 134

Notes to the Accounts
For the Year Ended 31st December 2003
9 Tax (continued)
The tax for the year is lower (2002 and 2001: lower) than the standard rate of corporation tax in the UK (30%) (2002 and 2001: 30%). The differences
are set out below:
2003 2002 2001
£m £m £m
Tax charge at average United Kingdom corporation tax rate of 30% (2002: 30%, 2001: 30%) 1,153 961 1,027
Prior year adjustments 7(9) 28
Effect of change in non-allowable general provisions 2(2) (11)
Effect of non-allowable property write-downs and depreciation 13 12 17
Effect of Enterprise Zone Allowance (205) ––
Net effect of differing tax rates overseas (95) (70) (65)
Net effect of overseas losses not available for relief in the United Kingdom (12) (40) (17)
Other non-allowable expenses (28) 8(21)
Gains covered by capital losses brought forward (44) (3) (49)
Goodwill 74 69 67
Other items 17 63 (37)
Current tax charge 882 989 939
Deferred tax charge 194 (34) 4
Overall tax charge 1,076 955 943
Effective tax rate % 28.0 29.8 27.5
The charge for the year is based upon a UK corporation tax rate of 30% for the calendar year 2003 (2002: 30%, 2001: 30%). The effective rate of tax
was 28.0% (2002: 29.8%, 2001: 27.5%). The decrease in the tax rate was primarily due to the beneficial effects of lower tax on overseas income,
recognition of agreed capital gains tax losses and certain non-taxable gains, partially offset by the absence of tax relief on goodwill. The beneficial
effect of the Enterprise Zone Allowance in the current tax charge is offset by a corresponding increase in the deferred tax charge.
10 Minority and other interests – Barclays PLC
Equity minority interests in the balance sheet represent the interests of third parties in the equity shares of the Group subsidiary undertakings.
11 Dividends – Barclays PLC
2003 2002 2001
Dividends per ordinary share £m £m £m
Interim 457 419 383
Final 883 787 727
1,340 1,206 1,110
(pence per share)
Interim 7.05 6.35 5.750
Final 13.45 12.00 10.875
20.50 18.35 16.625
Dividends amounting to £0.2m (2002: £0.2m, 2001: £0.2m) are payable on the staff shares, which carry a fixed dividend of 20% per annum unless no
dividend is paid for the year on the ordinary shares.
12 Earnings per 25p ordinary share – Barclays PLC
2003 2002 2001
£m £m £m
Basic and diluted earnings 2,744 2,230 2,446
Number of shares (millions)
Basic weighted average number of shares 6,483 6,626 6,651
Potential ordinary shares 31 47 67
Diluted weighted average number of shares 6,514 6,673 6,718
Basic and diluted earnings are based upon the results after deducting tax, profit attributable to minority interests and dividends on staff shares.
Certain shares held by incentive plans have been excluded from the calculation of earnings per share in line with UITF 13, on the grounds that the
trustee has waived all dividend and voting rights.
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