Carphone Warehouse 2008 Annual Report Download - page 66

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Notes to the Financial Statements continued
54 The Carphone Warehouse Group PLC Annual Report 2008
7Interest payable and receivable (continued)
Interest receivable is analysed as follows:
2008 2007
£m £m
Interest on cash and cash equivalents 7.1 4.5
Profit on disposal of available-for-sale investments 1.3 1.4
Interest element of forward foreign exchange contracts 1.3 –
Other interest receivable 1.0 0.2
10.7 6.1
8 Taxation
The tax charge comprises:
2008 2007
£m £m
Current tax:
UK corporation tax 9.1 4.9
Overseas tax 12.4 15.2
21.5 20.1
Adjustments in respect of prior periods:
UK corporation tax (8.2) (2.4)
Overseas tax (6.5) 0.9
(14.7) (1.5)
Total current tax 6.8 18.6
Deferred tax:
Origination and reversal of timing differences 5.2 (12.9)
Adjustments in respect of prior periods (5.5) (4.3)
Total deferred tax (0.3) (17.2)
Total tax charge 6.5 1.4
The tax charge relating to Headline earnings (see note 10) in the period is £33.5m (2007 – £17.7m) representing an effective tax rate of 15.5% (2007 – 14.3%).
The tax charge relating to Statutory earnings in the period is £6.5m (2007 – £1.4m) representing an effective tax rate of 5.3% (2007 – 2.0%).
The principal differences between the total tax charge shown above and the amount calculated by applying the standard rate of UK corporation
tax of 30% to profit before taxation are as follows:
2008 2007
£m £m
Profit before taxation 124.1 68.4
Profit before taxation at 30% 37.3 20.5
Items attracting no tax relief or liability 8.3 4.4
Income taxed at lower rates (19.7) (12.8)
Benefit of tax losses brought forward (4.0) (4.5)
Adjustments in respect of prior periods (20.2) (5.8)
Other timing differences not recognised in deferred tax 2.2 (0.4)
Impact of change in UK tax rate (see below) 2.6 –
Total tax charge 6.5 1.4
Tax on items recognised directly in reserves is as follows:
2008 2007
£m £m
Current tax credit on share-based payments 8.4 7.8
Deferred tax debit on share-based payments (3.0) (3.5)
Deferred tax credit (debit) on available-for-sale investments 1.3 (1.1)
6.7 3.2