Marks and Spencer 2009 Annual Report Download - page 111

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107
24 Deferred tax
Deferred tax is calculated in full on temporary differences under the liability method using a tax rate of 28% (last year 28%) for UK differences
and the local tax rates for overseas differences.
The movements in deferred tax assets and liabilities (after the offsetting of balances within the same jurisdiction as permitted by IAS 12 –
‘Income Taxes’) during the period are shown below. Deferred tax assets and liabilities are only offset where there is a legally enforceable right
of offset and there is an intention to settle the balances net.
Deferred tax assets/(liabilities)
Fixed
assets
temporary
differences
£m
Accelerated
capital
allowances
£m
Pension
temporary
differences
£m
Other
short-term
temporary
differences
£m
Total
UK
deferred
tax
£m
Overseas
deferred tax
£m Total
£m
At 1 April 2007 (90.6) (103.2) 183.5 21.9 11.6 (7.3) 4.3
Credited/(charged) to the income statement 13.7 (41.4) (150.5) (12.9) (191.1) 0.4 (190.7)
Credited/(charged) to equity – – (172.4) (15.1) (187.5) 1.8 (185.7)
At 29 March 2008 (76.9) (144.6) (139.4) (6.1) (367.0) (5.1) (372.1)
At 30 March 2008 (76.9) (144.6) (139.4) (6.1) (367.0) (5.1) (372.1)
Credited/(charged) to the income statement (2.0) 17.3 (87.0) (5.7) (77.4) (0.2) (77.6)
Credited/(charged) to equity – – 254.9 (29.5) 225.4 0.4 225.8
At 28 March 2009 (78.9) (127.3) 28.5 (41.3) (219.0) (4.9) (223.9)
In arriving at the deferred tax on fixed assets, credit has been taken for capital losses with a tax value of £60.5m (last year £53.0m).
No deferred tax is recognised on the unremitted earnings of overseas subsidiaries. As the earnings are continually reinvested by the Group,
no tax is expected to be payable to them in the foreseeable future. Undistributed profits of overseas subsidiaries amount to £380.6m
(last year £295.1m).
The Group is claiming UK tax relief for losses incurred by some of its current and former European subsidiaries. In light of continuing litigation,
no asset has been recognised in respect of these claims.
25 Share capital
2009 2008
Shares £m Shares £m
Authorised ordinary shares of 25p each 3,200,000,000 800.0 3,200,000,000 800.0
Allotted, called up and fully paid ordinary shares of 25p each:
At start of year 1,586,478,423 396.6 1,699,773,100 424.9
Shares issued on exercise of share options 2,217,763 0.5 12,447,224 3.1
Shares purchased in buy-back (10,901,267) (2.7) (125,741,901) (31.4)
At end of year 1,577,794,919 394.4 1,586,478,423 396.6
Issue of new shares
2,217,763 (last year 12,447,224) ordinary shares having a nominal value of £0.5m (last year £3.1m) were allotted during the year under the
terms of the Company’s schemes which are described in note 12. The aggregate consideration received was £5.3m (last year £31.6m).
Share buy-back
10,901,267 (last year 125,741,901) ordinary shares having a nominal value of £2.7m (last year £31.4m) were bought back and subsequently
cancelled during the year in accordance with the authority granted by shareholders at the Annual General Meeting in July 2007. The
aggregate consideration paid was £40.9m (last year £555.9m).