Barclays 2013 Annual Report Download - page 297

Note 10: Tax continued
Current tax assets and liabilities
Movements on current tax assets and liabilities were as follows:
2013
£m
2012
£m
Assets 252 374
Liabilities (621) (1,397)
As at 1 January (369) (1,023)
Income statement (2,153) (775)
Other comprehensive income (2) (172)
Corporate income tax paid 1,558 1,516
Other movements 143 85
(823) (369)
Assets 219 252
Liabilities (1,042) (621)
As at 31 December (823) (369)
Other movements include current tax amounts relating to acquisitions, disposals and exchange gains and losses.
Deferred tax assets and liabilities
The deferred tax amounts on the balance sheet were as follows:
2013
£m
2012
£m
Barclays Group US Inc. tax group (BGUS) 1,449 1,160
US Branch of Barclays Bank PLC (US Branch) 1,362 953
UK Group relief group 1,171 532
Spanish tax group 353 611
Other 472 307
Deferred tax asset 4,807 3,563
Deferred tax liability (373) (341)
Net deferred tax 4,434 3,222
US deferred tax assets in BGUS and the US Branch
The deferred tax asset in BGUS of £1,449m (2012: £1,160m) and the US Branch of £1,362m (2012: £953m) includes amounts relating to tax losses
of £156m (2012: £135m) and £408m (2012: £834m) respectively, which first arose in 2007. In accordance with US tax rules tax losses can be
carried forward and offset against profits for a period of 20 years and therefore any unused tax losses may begin to expire in 2028. The remaining
balance primarily relates to temporary differences which are not time limited. The US Branch deferred tax asset is stated net of a measurement for
UK tax because Barclays Bank PLC is subject to UK tax on the profits of its non-UK branches.
BGUS returned to profitability in 2012, primarily driven by Barclays Capital Inc., its US broker dealer, with tax losses expected to be fully utilised by
2015. A 20% reduction in forecasted profit would not extend the recovery period. The assumptions used in the profit forecasts do not include any
incremental tax planning strategies.
The tax losses in the US Branch are projected to be fully utilised by 2017, based on profit forecasts covering the period from 2014 to 2018. A 20%
reduction in forecasted profit would extend the recovery period by 1 year to 2018. The assumptions used in the profit forecasts do not include any
incremental tax planning strategies.
UK Group relief group deferred tax asset
The deferred tax asset in the UK Group relief group of £1,171m (2012: £532m) includes £499m (2012: £342m) relating to tax losses. Tax losses can
be carried forward indefinitely in the UK. The remaining balance relates to other temporary differences. Based on profit forecasts, it is probable that
there will be sufficient future taxable profits available against which the temporary differences and losses will be utilised.
Spain deferred tax asset
A change in Spanish law in December 2013 resulted in the protection of certain deferred tax assets, mainly relating to pensions and impairments,
whilst the remaining deferred tax assets (that are not protected by the change in law) continue to be reliant on future profits. Based on the current
assessment of business forecasts there is insufficient evidence that future profits will be available to recover unprotected deferred tax assets for
accounting purposes. As such only the protected deferred tax assets continue to be recognised resulting in a write down of £440m.
Other deferred tax assets
The deferred tax asset of £472m (2012: £307m) in other entities includes £157m (2012: £55m) relating to tax losses carried forward. Entities
which have suffered a loss in either the current or prior year have a total deferred tax asset of £114m (2012: £135m) relating to tax losses carried
forward and temporary differences. Recognition is based on profit forecasts which indicate that it is probable that the entities will have future
taxable profits against which the losses and temporary differences can be utilised.
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