Barclays 2006 Annual Report Download - page 189

Barclays PLC
Annual Report 2006 185
Financial statements
3
21 Current and deferred tax (continued)
Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to set off and the balances relate to income tax levied by
the same taxation authority on either the same taxable entity or different taxable entities within the same tax group where there is the intention and
ability to settle on a net basis or realise the assets and liabilities simultaneously.
The amount of deferred tax liability expected to be settled after more than 12 months is £1,046m (2005: £982m).
The amount of deferred tax asset expected to be recovered after more than 12 months is £1,582m (2005: £1,686m).
The deferred tax assets balance includes £106m (2005: £27m) which is the excess deferred tax assets over deferred tax liabilities in entities which
have suffered a loss in either the current or prior year. This is based on management assessment that it is probable that the relevant entities will have
taxable profits against which the temporary differences can be utilised.
The deferred tax charge/(credit) in the income statement comprises the following temporary differences:
2006 2005
£m £m
Accelerated tax depreciation 120 130
Pensions and other retirement benefits (24) 39
Allowance for impairment on loans (30) (1)
Other provisions (105) (133)
Tax losses carry forward 25 (20)
Available for sale investments 8(52)
Cash flow hedges (14) 1
Share-based payments (77) (115)
Other 101 66
Total 4(85)
Deferred tax assets have not been recognised in respect of the following items:
2006 2005
£m £m
Deductible temporary differences (gross) 395 340
Unused tax losses (gross) 190 363
Unused tax credits 98 24
The following tax losses expire: £3m in 2007 and £4m in 2009. The other tax losses, tax credits and temporary differences do not expire under
current tax legislation. Deferred tax assets have not been recognised in respect of these items because it is not probable that future taxable profit will
be available against which the Group can utilise the benefits.
The amount of temporary differences associated with investments in subsidiaries, branches, associates and joint ventures for which deferred tax
liabilities have not been recognised is £3,387m (2005: £2,126m).