Barclays 2015 Annual Report Download - page 271

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10 Tax continued
Current tax assets and liabilities
Movements on current tax assets and liabilities were as follows:
2015
£m
2014
£m
Assets 334 219
Liabilities (1,021) (1,042)
As at 1 January (687) (823)
Income statement (1,718) (1,402)
Other comprehensive income 6 (26)
Corporate income tax paid 1,670 1,552
Other movements 241 12
(488) (687)
Assets 415 334
Liabilities (903) (1,021)
As at 31 December (488) (687)
Deferred tax assets and liabilities
The deferred tax amounts on the balance sheet were as follows:
2015
£m
2014
£m
Barclays Group US Inc (BGUS) – US tax group 1,903 1,588
Barclays Bank PLC (US Branch) – US tax group 1,569 1,591
Barclays PLC – UK tax group 411 461
Other 612 490
Deferred tax asset 4,495 4,130
Deferred tax liability (122) (262)
Net deferred tax 4,373 3,868
US deferred tax assets in BGUS and the US Branch
The deferred tax asset in BGUS of £1,903m (2014: £1,588m) includes £449m (2014: £348m) relating to tax losses and the deferred tax asset in the
US Branch of £1,569m (2014: £1,591m) includes £244m (2014: £479m) relating to tax losses. Under US tax rules losses can be carried forward and
offset against profits for a period of 20 years. The losses first arose in 2011 in BGUS and 2008 in the US Branch and therefore any unused amounts
may begin to expire in 2031 and 2028 respectively. The remaining US deferred tax assets relate primarily to temporary differences for which there is
no time limit on recovery.
The valuation of the Group’s US deferred tax assets was adjusted downwards in 2015 as a result of both the reduction in the local New York rate of
tax, which affected the deferred tax asset in both BGUS and the US Branch, and the introduction of the new UK corporation tax surcharge, which
affected the deferred tax asset in the US Branch. 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.
The deferred tax asset for the BGUS tax loss is projected to be fully utilised in 2017 and the deferred tax asset for the US Branch loss to be fully
utilised in 2018.
UK tax group deferred tax asset
The deferred tax asset in the UK tax group of £411m (2014: £461m) relates entirely to temporary differences (2014: £245m related to tax losses).
Based on profit forecasts, it is probable that there will be sufficient future taxable profits available against which the temporary differences will be
utilised.
Other deferred tax assets
The deferred tax asset of £612m (2014: £490m) in other entities within the Group includes £209m (2014: £243m) relating to tax losses carried
forward. These deferred tax assets relate to a number of different territories and their recognition is based on profit forecasts or local country laws
which indicate that it is probable that the losses and temporary differences will be utilised.
Of the deferred tax asset of £612m (2014: £490m), an amount of £106m (2014: £140m) relates to entities which have suffered a loss in either the
current or prior year. This has been taken into account in reaching the above conclusion that these deferred tax assets will be fully recovered in the
future.
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