Barclays 2007 Annual Report Download - page 188

Notes to the accounts
For the year ended 31st December 2007
186 Barclays PLC Annual Report 2007
10 Tax
The charge for tax is based upon the standard UK corporation tax rate of 30% (2006: 30%, 2005: 30%) and comprises:
2007 2006 2005
£m £m £m
Current tax charge
Current year 2,385 1,929 1,583
Adjustment for prior years (11) 8 (59)
Total 2,374 1,937 1,524
Deferred tax (credit)/charge
Current year (367) (16) (14)
Adjustment for prior years (26) 20 (71)
Total (393) 4 (85)
Tax charge 1,981 1,941 1,439
The effective tax rate for the years 2007, 2006 and 2005 is lower than the standard rate of corporation tax in the UK of 30% (2006: 30%, 2005: 30%).
The differences are set out below:
2007 2006 2005
£m £m £m
Profit before tax 7,076 7,136 5,280
Tax charge at standard UK corporation tax rate of 30% (2006: 30%, 2005: 30%) 2,123 2,141 1,584
Adjustment for prior years (37) 24 (133)
Differing overseas tax rates (77) (17) (35)
Non-taxable gains and income (including amounts offset by unrecognised tax losses) (136) (393) (129)
Share-based payments 72 27 (12)
Deferred tax assets not previously recognised (158) (4) (7)
Change in tax rates 24 43
Other non-allowable expenses 170 159 168
Overall tax charge 1,981 1,941 1,439
Effective tax rate 28% 27% 27%
11 Earnings per share
2007 2006 2005
£m £m £m
Profit attributable to equity holders of parent 4,417 4,571 3,447
Dilutive impact of convertible options (25) (30) (38)
Profit attributable to equity holders of parent including dilutive impact of convertible options 4,392 4,541 3,409
2007 2006 2005
million million million
Basic weighted average number of shares in issue 6,410 6,357 6,337
Number of potential ordinary shares 177 150 149
Diluted weighted average number of shares 6,587 6,507 6,486
ppp
Basic earnings per share 68.9 71.9 54.4
Diluted earnings per share 66.7 69.8 52.6
The calculation of basic earnings per share is based on the profit attributable to equity holders of the parent and the number of basic weighted average
number of shares excluding own shares held in employee benefits trusts and shares held for trading.
When calculating the diluted earnings per share, the profit attributable to equity holders of the parent is adjusted for the conversion of outstanding
options into shares within Absa Group Limited and Barclays Global Investors UK Holdings Limited. The weighted average number of ordinary shares
excluding own shares held in employee benefit trusts and shares held for trading, is adjusted for the effects of all dilutive potential ordinary shares,
totalling 177 million (2006: 150 million, 2005: 149 million).
Of the total number of employee share options and share awards at 31st December 2007, none were anti-dilutive (2006: 5 million 2005: nil).
Subsequent to the balance sheet date, the Group continued to make on-market purchases of treasury shares under its various employee share schemes.
No adjustment has been made to earnings per share in respect of these purchases.