Barclays 2006 Annual Report Download - page 176

Notes to the accounts
For the year ended 31st December 2006
Barclays PLC
Annual Report 2006
172
10 Tax
The charge for tax is based upon the standard UK corporation tax rate of 30% (2005: 30%, 2004: 30%) and comprises:
2006 2005 2004
£m £m £m
Current tax charge
Current year 1,929 1,583 1,240
Adjustment for prior years 8(59) (48)
Total 1,937 1,524 1,192
Deferred tax charge/(credit)
Origination and reversal of temporary differences (16) (7) 65
Adjustment for prior years 20 (71) 22
Change in tax rate 43–
Other (4) (10) –
Total 4(85) 87
Tax charge 1,941 1,439 1,279
2006 2005 2004
£m £m £m
Current tax charge
United Kingdom 1,138 1,013 938
Overseas 799 511 254
Total 1,937 1,524 1,192
Deferred tax charge/(credit)
United Kingdom 96 (52) 90
Overseas (92) (33) (3)
Total 4(85) 87
Tax charge 1,941 1,439 1,279
Available overseas tax credits of £515m (2005: £270m, 2004: £360m) have been applied to reduce UK tax in accordance with UK legislation.
The effective tax rate for the years 2006, 2005 and 2004 is lower than the standard rate of corporation tax in the UK of 30% (2005: 30%, 2004: 30%).
The differences are set out below:
2006 2005 2004
£m £m £m
Profit before tax 7,136 5,280 4,580
Tax charge at standard UK corporation tax rate of 30% (2005: 30%, 2004: 30%) 2,141 1,584 1,374
Adjustment for prior years 28 (130) (26)
Differing overseas tax rates (17) (35) (110)
Non-taxable gains and income (including amounts offset by previously unrecognised tax losses) (393) (129) (51)
Share-based payments 27 (12) –
Deferred tax assets not recognised (4) (7) 24
Other non-allowable expenses 159 168 68
Overall tax charge 1,941 1,439 1,279
Effective tax rate 27% 27% 28%