Barclays 2010 Annual Report Download - page 41

Gains of £26m for the year relate to the acquisition of the Portuguese
credit card business of Citibank International PLC in December 2009.
A gain on acquisition of the North American businesses of Lehman
Brothers of £2,262m was recorded in 2008. Details of current litigation
relating to the acquisition are disclosed on page 227.
Tax
2010
The tax charge for continuing operations for 2010 was £1,516m
(2009: £1,074m) representing an effective tax rate of 25% (2009: 23.4%).
The effective tax rate differs from the UK tax rate of 28% (2009: 28%)
because of non-taxable gains and income, different tax rates that are
applied to the profits and losses outside of the UK, and deferred tax
assets previously not recognised.
2009
The effective tax rate for 2009, based on profit before tax on continuing
operations, was 23.4% (2008: 8.8%). The effective tax rate differs from
the UK tax rate of 28% (2008: 28.5%) because of non-taxable gains and
income, different tax rates applied to taxable profits and losses outside
the UK, disallowable expenditure and adjustments in respect of prior years.
The low effective tax rate of 8.8% on continuing operations in 2008 mainly
resulted from the Lehman Brothers North American businesses acquisition.
Profit for the year from discontinued operations
2010
There were no discontinued operations in 2010.
2009
The profit after tax from discontinued operations increased £6,173m
to £6,777m, reflecting the gain on sale of Barclays Global Investors (BGI)
of £6,331m (2008: £nil) and other profit before tax from BGI of £726m
(2008: £941m). The results for 2009 included 11 months of operations
compared to 12 months for 2008.
Barclays PLC Annual Report 2010 www.barclays.com/annualreport10 39
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