Marks and Spencer 2008 Annual Report Download - page 69

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6 Income tax expense
A Taxation charge
2008 2007
£m £m
Current tax
UK corporation tax at 30% (last year 30%)
– current year 123.0 172.4
– current year tax on exceptional finance costs –(6.5)
– prior years (13.1) 6.1
109.9 172.0
Overseas current taxation 7.5 7.5
Total current taxation 117.4 179.5
Deferred tax (see note 24)
– current year 184.0 108.2
– prior years 6.7 (10.2)
Total deferred taxation 190.7 98.0
Total income tax expense 308.1 277.5
B Taxation reconciliation
2008 2007
£m £m
Profit before tax 1,129.1 936.7
Taxation at the standard UK corporation tax rate of 30% (last year 30%) 338.7 281.0
Depreciation, charges and other amounts on non-qualifying fixed assets 0.6 5.4
Other income and expenses not taxable or deductible (1.3) (1.0)
Tax on exceptional finance costs not deductible –2.6
Overseas profits taxed at lower rates (6.8) (6.4)
Impact of change in UK corporation tax rate (16.7) –
Adjustments to tax charge in respect of prior periods (6.4) (4.1)
Total income tax expense 308.1 277.5
The post-exceptional effective tax rate was 27.3% (last year 29.6%) and the pre-exceptional effective tax rate was 27.0% (last
year 29.4%). The change in the standard UK corporation tax rate to 28% from April 2008 has resulted in a deferred tax credit
of £16.7m, reducing the total effective tax rate by 1.5%.
7 Discontinued operation
On 28 April 2006, the Group disposed of Kings Super Markets Inc to a US investor group for US$61.5m excluding cash in the
business at the date of disposal. Depreciation of £0.3m incurred last year in the period before disposal has been excluded
from the segmental disclosures in note 2.
marksandspencer.com/annualreport08 MARKS AND SPENCER GROUP PLC 67
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