Carphone Warehouse 2011 Annual Report Download - page 66

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62 Carphone Warehouse Group plc Annual Report 2011
NOTES TO THE FINANCIAL STATEMENTS CONTINUED
8 TAXATION
The tax charge (credit) comprises:
2011
£m
2010
£m
Current tax:
UK corporation tax 1.2 –
1.2 –
Deferred tax:
Origination and reversal of timing differences 0.2 (0.6)
Adjustments in respect of prior years 0.2 0.2
0.4 (0.4)
Total tax charge (credit) 1.6 (0.4)
The principal differences between the tax charge (credit) and the amount calculated by applying the standard rate of UK corporation
tax of 28% (2010: 28%) to the profit before taxation are as follows:
2011
£m
2010
£m
Profit before taxation 67.2 218.4
Profit before taxation at 28% (2010: 28%) 18.8 61.2
Adjustments in respect of prior years 0.2 0.2
Items attracting no tax relief or liability (17.4) (61.8)
Total tax charge (credit) 1.6 (0.4)
Items attracting no tax relief or liability primarily relate to the Group’s share of results of joint ventures. Taxation associated with the
Group’s interests in joint ventures is recognised within their results.
Deferred tax assets recognised by the Group and movements thereon during the year are as follows:
2011
£m
2010
£m
Opening balance 0.8 0.2
(Charge) credit to the income statement (0.4) 0.4
Movements through accumulated profits 1.0 –
Movements through the demerger reserve –0.2
Deferred tax assets 1.4 0.8
On 23 March 2011 the government announced the reduction of the UK corporation tax rate from 28% to 26% from 6 April 2011 and
then to 23% over the following three years. The impact of this reduction is not material to the wholly-owned Group.