National Grid 2004 Annual Report Download - page 26

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7. Net interest
12 months 12 months
ended ended
31 Mar 2004 31 Mar 2003
£m £m
Bank loans and overdrafts 95
Other 305 331
314 336
Unwinding of discount on provisions 66
Interest capitalised (12) –
Interest payable and similar charges net of interest capitalised 308 342
Interest receivable and similar income (2) (20)
306 322
Loss incurred on the repurchase of debt during the 12 months ended 31 March 2004 included in interest payable and similar charges was £nil
(12 months ended 31 March 2003: £7m).
Interest on the funding attributable to assets in the course of construction was capitalised at a rate of 5.7%.
No interest was capitalised in prior years as the amounts were not material.
8. Taxation
12 months 12 months
ended ended
31 Mar 2004 31 Mar 2003
£m £m
United Kingdom current tax
– Corporation tax at 30% 238 135
– Adjustment in respect of prior years (14) (5)
Deferred tax
– Current period (14) 18
– Adjustment in respect of prior years (27) –
Taxation 183 148
Comprising:
Taxation – excluding exceptional items 207 189
Taxation – exceptional items (24) (41)
183 148
A reconciliation of the UK corporation tax rate to the effective tax rate of the Group is as follows:
% of profit before taxation
12 months 12 months
ended ended
31 Mar 2004 31 Mar 2003
UK corporation tax rate 30.0 30.0
Effect on tax charge of:
Origination and reversal of timing differences 1.7 (3.1)
Permanent differences 0.3 1.6
Current tax charge 32.0 28.5
Deferred taxation (1.7) 3.1
Effective tax rate before tax adjustments in respect of prior years and exceptional items 30.3 31.6
Tax adjustments in respect of prior years (5.0) (0.8)
Effective tax rate before exceptional items 25.3 30.8
Exceptional items (0.6) 1.7
Effective tax rate after exceptional items 24.7 32.5
Factors that may affect future tax charges
Transco has brought forward non-trading debits of £75m (31 March 2003: £75m) which may reduce tax payments in future years.
No provision has been made for deferred tax on gains recognised on the sale of properties where potentially taxable gains have been rolled over into
replacement assets. Such tax would become payable only if the replacement asset were sold without it being possible to claim roll-over relief. The total
amount not provided for is £46m (31 March 2003: £46m). At present, it is not envisaged that any tax on amounts rolled over will become payable in
the foreseeable future.
24 Transco plc_Annual Report and Accounts 2003/04
Notes to the Accounts_continued