Barclays 2004 Annual Report Download - page 107

105
Tax
The overall tax charge is explained in the following table:
2004 2003 2002
£m £m £m
Tax charge at average United
Kingdom corporation tax rate
of 30% (2003: 30%; 2002: 30%) 1,381 1,153 961
Prior year adjustments (12) (21) (25)
Effect of change in
non-allowable general
provisions 22(2)
Effect of non-allowable property
write-downs and depreciation 20 13 12
Net effect of differing tax
rates overseas (110) (95) (70)
Net effect of overseas losses
not available for relief in the
United Kingdom 24 (12) (40)
Other non-allowable expenses (5) (28) 8
Gains covered by capital losses
brought forward (51) (44) (3)
Goodwill 71 74 69
Other items (31) 34 45
Overall tax charge 1,289 1,076 955
Effective tax rate % 28.0 28.0 29.8
The charge for the year is based upon a UK corporation tax rate of
30% for the calendar year 2004 (2003: 30%). The effective rate of tax
for 2004 was 28% (2003: 28%). This is lower than the standard rate
primarily due to the beneficial effects of lower tax on overseas
income and certain non-taxable gains offset by the absence of tax
relief on goodwill.
UK GAAP compared with US GAAP
The Group also provides results on the basis of accounting principles
generally accepted in the United States (US GAAP). The impact on net
income and shareholders’ equity of applying US GAAP is set out below.
The individual UK/US GAAP adjustments are discussed in Note 52 on
pages 196 to 222.
Attributable profit (UK GAAP)/Net income (US GAAP)
ˆ
2004 2003 2002
£m £m £m
Barclays PLC Group
Attributable profit (UK GAAP)/
Net income (US GAAP)
UK GAAP 3,268 2,744 2,230
US GAAP 3,032 1,740 2,476
Barclays Bank PLC Group
Attributable profit (UK GAAP)/
Net income (US GAAP)
UK GAAP 3,279 2,744 2,228
US GAAP 3,137 1,842 2,578
Shareholders’ funds (UK GAAP)/Shareholders’ equity (US GAAP)
ˆ
2004 2003
£m £m
Barclays PLC Group
Shareholders’ funds (UK GAAP)/
Shareholders’ equity (US GAAP)
UK GAAP(a) 17,417 16,374
US GAAP 16,953 16,830
Barclays Bank PLC Group
Shareholders’ funds (UK GAAP)/
Shareholders’ equity (US GAAP)
UK GAAP 18,271 16,485
US GAAP 19,594 18,646
Note
(a) Figures for 2003 have been restated to reflect the adoption of UITF
Abstract 38 (UITF 38), ‘Accounting for ESOP trusts’.
The Group does not manage its business with regard to reported
trends on a US GAAP basis. Consequently the level of adjustment
from the application of US GAAP in current or past periods is not
necessarily indicative of the magnitude or direction of such
adjustment in subsequent periods.
Barclays PLC Annual Report 2004