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Financial statements Marks and Spencer Group plc Annual report and financial statements 2012 103
Overview Strategic review Financial review Governance Financial statements and other information
23 Deferred tax
Deferred tax is provided under the balance sheet liability method using a tax rate of 24% (last year 26%) for UK differences and
local tax rates for overseas differences. Details of the changes to the UK corporation tax rate and the impact on the Group are
described in note 7.
The movements in deferred tax assets and liabilities (after offsetting balances within the same jurisdiction as permitted by IAS 12
– ‘Income Taxes’) during the year are shown below.
Deferred tax (liabilities)/assets
Non-current
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 4 April 2010 (74.3) (123.7) 81.2 (3.2) (120.0) (5.8) (125.8)
Credited/(charged) to the income statement 10.5 18.9 3.0 7.1 39.5 (3.2) 36.3
(Charged)/credited to equity – – (112.0) 6.1 (105.9) (1.1) (107.0)
At 2 April 2011 (63.8) (104.8) (27.8) 10.0 (186.4) (10.1) (196.5)
At 3 April 2011 (63.8) (104.8) (27.8) 10.0 (186.4) (10.1) (196.5)
Credited/(charged) to the income statement 5.6 4.2 4.4 (2.9) 11.3 (1.5) 9.8
(Charged)/credited to equity – – (5.1) (0.6) (5.7) (3.3) (9.0)
At 31 March 2012 (58.2) (100.6) (28.5) 6.5 (180.8) (14.9) (195.7)
The deferred tax liability on non-current assets is stated net of the benefit of capital losses with a tax value of £71.4m (last year
£65.0m). No benefit has been recognised in respect of unexpired trading losses carried forward in overseas jurisdictions with a
tax value of £26.8m (last year £16.1m).
In addition, the Group is claiming UK tax relief for losses incurred by some of its current and former European subsidiaries. In
light of the continuing litigation no asset has been recognised in respect of these claims.
No deferred tax has been recognised in respect of undistributed earnings of overseas subsidiaries and joint ventures, as no
material liability is expected to arise on distribution of these earnings under applicable tax legislation.
24 Ordinary share capital
2012 2011
Shares £m Shares £m
Issued and fully paid ordinary shares of 25p each
At start of year 1,584,863,882 396.2 1,582,316,581 395.5
Shares issued on exercise of share options 20,643,220 5.2 2,547,301 0.7
At end of year 1,605,507,102 401.4 1,584,863,882 396.2
Issue of new shares
20,643,220 (last year 2,547,301) ordinary shares having a nominal value of £5.2m (last year £0.7m) were allotted during the year
under the terms of the Company’s schemes which are described in note 13. The aggregate consideration received was £44.3m
(last year £8.4m).