Barclays 2011 Annual Report Download - page 216

Notes to the financial statements
For the year ended 31 December 2011 continued
11 Tax continued
The table below shows the reconciliation between the actual tax charge and the tax charge that would result from applying the standard UK
corporation tax rate to the Group’s profit before tax.
2011
£m
2010
£m
2009
£m
Profit before tax from continuing operations 5,879 6,065 4,585
Tax charge based on the standard UK corporation tax rate of 26.5% (2010: 28%, 2009: 28%) 1,558 1,698 1,284
Effect of non-UK profits or losses at local statutory tax rates different from the UK statutory tax ratea190 108 (27)
Non-creditable taxesb567 454 175
Non-taxable gains and income (494) (572) (287)
Impact of share price movements on share-based payments 147 41 (38)
Deferred tax assets (previously not recognised) / not recognised (816) (160) 27
Change in tax rates 17 34 (12)
Non-deductible impairment charges, loss on disposals and UK bank levyc770 68 19
Other items including non-deductible expenses 120 (140) 153
Adjustments in respect of prior years (131) (15) (220)
Tax charge 1,928 1,516 1,074
Effective tax rate 32.8% 25.0% 23.4%
Current tax assets and liabilities
Movements on current tax assets and liabilities were as follows:
2011
£m
2010
£m
Assets 196 349
Liabilities (646) (992)
As at 1 January 2011 (450) (643)
Income statement (2,629) (1,393)
Equity 104 180
Corporate income tax paid 1,686 1,458
Other movements 266 (52)
(1,023) (450)
Assets 374 196
Liabilities (1,397) (646)
As at 31 December 2011 (1,023) (450)
Other movements include current tax amounts relating to acquisitions, disposals and exchange.
Deferred tax assets and liabilities
The deferred tax amounts on the balance sheet, after offsetting asset and liability balances where there is a legal right to set-off and an intention to
settle on a net basis, were as follows:
2011
£m
2010
£m
Barclays Group US Inc. tax group (BGUS) 1,039 875
US Branch of Barclays Bank PLC (US Branch) 704 197
Spanish tax group 696 496
Other 571 949
Deferred tax asset 3,010 2,517
Deferred tax liability (695) (514)
Net deferred tax 2,315 2,003
The deferred tax asset increased by 20% in 2011 largely due to the improved financial performance in the US Branch resulting in a deferred tax asset in
2011 not previously recognised. There is no net deferred tax asset in the UK.
Notes
a In 2010 £205m (2009: £nil) was previously included in the effect of non-UK profits or losses at local statutory rates that differ from the UK rate and related to a deferred tax benefit on the
reorganisation of Spanish securitisation financing. This benefit is now included in other items including non-deductible expenses.
b This is a new item in the reconciliation to show the impact of non-creditable taxes mainly relating to the impact of withholding taxes. In 2010 £420m (2009: £175m) was previously
included in non-taxable gains and income, £72m (2009: £nil) was previously included in other items including non-deductible expenses and £(38)m (2009: £nil) was previously included
in the effect of non-UK profits or losses at local statutory rates that differ from the UK rate.
c This is a new item in the reconciliation to show the impact of non-deductible impairments charges, loss on disposals and the UK bank levy. In 2010 non-deductible impairment charges of
£68m (2009: £19m) was previously included in other items including non-deductible expenses.
214 Barclays PLC Annual Report 2011 www.barclays.com/annualreport