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46 National Grid Gas plc Annual Report and Accounts 2010/11
7. Taxation
Taxation on items charged/(credited) to the income statemen
t
Before exceptional items Exceptional items
and remeasurements and remeasurements Total
2011 2010 2011 2010 2011 2010
£m £m £m £m £m £m
United Kingdom
Corporation tax at 28% 141 196 (23) (34) 118 162
Corporation tax adjustment in respect of prior years 1(5) --1(5)
142 191 (23) (34) 119 157
Deferred tax 131 129 (144) -(13) 129
Deferred tax adjustment in respect of prior years (5) 2(1) -(6) 2
126 131 (145) -(19) 131
Total tax charge/(credit) 268 322 (168) (34) 100 288
Taxation on items charged/(credited) to other comprehensive income and equit
y
2011 2010
£m £m
Deferred tax charge/(credit) on revaluation of cash flow hedges 2(18)
Tax charge/(credit) recognised in consolidated statement of comprehensive income 2(18)
Before After Before After
exceptional exceptional exceptional exceptional
items and items and items and items and
remeasure- remeasure- remeasure- remeasure-
ments ments ments ments
2011 2011 2010 2010
£m £m £m £m
Profit before taxation
Before exceptional items and remeasurements 884 884 1,043 1,043
Exceptional items and remeasurements - (89) - (154)
Profit before taxation from continuing operations 884 795 1,043 889
Profit on continuing operations multiplied by the rate of corporation
tax in the UK of 28% 248 223 292 249
Effects of:
A
djustments in respect of prior years (4) (5) (3) (3)
Expenses not deductible for tax purposes 3334
Impact of change in UK tax rate - (144) --
Other 21 23 30 38
Total taxation from continuing operations 268 100 322 288
% % % %
Effective tax rate 30.3 12.6 30.9 32.4
The tax charge for the year after exceptional items and remeasurements is lower (2010: higher) than the standard rate of corporation tax in
the UK of 28% (2010: 28%). The differences are explained below: