Barclays 2012 Annual Report Download - page 250

10 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.
2012
£m
2011
£m
2010
£m
Profit before tax from continuing operations 246 5,879 6,065
Tax charge based on the standard UK corporation tax rate of 24.5% (2011: 26.5%; 2010: 28%) 60 1,558 1,698
Effect of non-UK profits or losses at local statutory tax rates different from the UK statutory tax rate 402 190 108
Non-creditable taxes 563 567 454
Non-taxable gains and income (642) (494) (572)
Impact of share price movements on share based payments (63) 147 41
Deferred tax assets (previously not recognised)/not recognised (135) (816) (160)
Change in tax rates (75) 17 34
Non-deductible impairment charges, loss on disposals and UK bank levy 84 770 68
Other items including non-deductible expenses 168 120 (140)
Adjustments in respect of prior years 120 (131) (15)
Tax charge 482 1,928 1,516
Effective tax rate 195.9% 32.8% 25.0%
The tax charge for continuing operations for 2012 was £482m (2011: £1,928m) on profit before tax of £246m (2011: £5,879m), representing an
effective tax rate of 195.9% (2011: 32.8%).The high effective tax rate in 2012 is a result of the combination of losses in the UK, primarily relating to
the own credit charge of £4,579m (2011: gain of £2,708m) with tax relief at 24.5% (2011: 26.5%) and profits outside the UK taxed at higher rates
represented by £402m (2011: £190m) in the tax rate reconciliation above. The aggregate of the remaining items in the tax rate reconciliation
amounts to £20m (2011: £180m).
Current tax assets and liabilities
Movements on current tax assets and liabilities were as follows:
2012
£m
2011
£m
Assets 374 196
Liabilities (1,397) (646)
As at 1 January 2012 (1,023) (450)
Income statement (775) (2,629)
Equity (172) 104
Corporate income tax paid 1,516 1,686
Other movements 85 266
(369) (1,023)
Assets 252 374
Liabilities (621) (1,397)
As at 31 December 2012 (369) (1,023)
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 were as follows:
2012
£m
2011
£m
Barclays Group US Inc. tax group (BGUS) 1,113 1,039
US Branch of Barclays Bank PLC (US Branch) 924 704
Spanish tax group 602 696
Other 377 571
Deferred tax asset 3,016 3,010
Deferred tax liability (719) (695)
Net deferred tax 2,297 2,315
barclays.com/annualreport248 I Barclays PLC Annual Report 2012
Notes to the financial statements
For the year ended 31 December 2012 continued