Marks and Spencer 2003 Annual Report Download - page 35

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www.marksandspencer.co m 33
5. Net interest (expense)/income 2003 2002
£m £m £m £m
Bank and other interest income 272.8 321.1
Less: amounts included in turnover of Financial Services (262.0) (283.9)
10.8 37.2
Interest expenditure (137.0) (116.9)
Less: interest charged to cost of sales of Financial Services 85.7 103.7
Intra-group interest charged to cost of sales of Financial Services (see note 2) –(6.4)
(51.3) (19.6)
Net interest (expense)/income (40.5) 17.6
Interest expenditure comprises:
Amounts repayable within five years:
Bank loans, overdrafts and other borrowings (22.4) (38.0)
Medium term notes (70.8) (63.1)
(93.2) (101.1)
Amounts repayable after five years:
Medium term notes (43.8) (15.8)
(137.0) (116.9)
6. Taxation on ordinary activities
A Taxation charge for the period 2003 2002
£m £m £m £m
Current taxation
UK corporation tax at 30% (last year 30%):
Current year 211.2 190.1
Prior years (16.4) 4.4
194.8 194.5
Double taxation relief –(0.1)
194.8 194.4
Overseas taxation 3.7 6.3
Total current taxation 198.5 200.7
Deferred taxation (see note 22)
Current year (4.0) (4.4)
Prior years 2.9 (13.8)
Total deferred taxation (1.1) (18.2)
197.4 182.5
Included in the tax charge for the year is a credit of £9.1m (last year £13.2m credit) which is attributable to exceptional charges.
B Taxation reconciliation 2003 2002
£m £m
Profit before taxation 677.5 335.9
Taxation at the standard UK corporation tax rate of 30% (last year 30%) 203.3 100.8
Permanent differences 10.5 18.4
Capital allowances less than/(in excess of) depreciation 2.4 (3.3)
Other timing differences 1.7 (5.6)
Net effect of restructuring charges 0.6 (24.2)
Write-off of goodwill for which no tax relief available –110.5
Net effect of different rates of tax in overseas businesses (3.6) (2.0)
Adjustments to tax charge in respect of prior periods (16.4) 4.4
Other differences –1.7
Total current taxation 198.5 200.7