Tesco 2015 Annual Report Download - page 103

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Recognised in the Group Income Statement
Continuing operations
2015
£m
2014
£m
Current tax (credit)/charge
UK corporation tax (141) 519
Foreign tax 73 203
Adjustments in respect of prior years (16) (50)
(84) 672
Deferred tax (credit)/charge
Origination and reversal of temporary differences (641) (93)
Adjustments in respect of prior years 36 (85)
Change in tax rate 32 (147)
(573) (325)
Total income tax (credit)/charge (657) 347
The Finance Act 2013 included legislation to reduce the main rate of UK corporation tax from 23% to 21% from 1 April 2014 and to 20% from 1 April 2015.
These rate reductions are therefore included in these consolidated financial statements.
Reconciliation of effective tax charge
2015
£m
2014
£m
(Loss)/profit before tax (6,376) 2,259
Tax credit/(charge) at 21.2% (2014: 23.1%) 1,352 (522)
Effect of:
Non-deductible expenses (604) (109)
Differences in overseas taxation rates (36) (12)
Adjustments in respect of prior years (20) 135
Share of (losses)/profits of joint ventures and associates (3) 14
Change in tax rate (32) 147
Total income tax credit/(charge) for the year 657 (347)
Effective tax rate 10.3% 15.4%
Tax on items credited directly to the Group Statement of Changes in Equity
2015
£m
2014
£m
Current tax credit/(charge) on:
Share-based payments –1
Deferred tax credit/(charge) on:
Share-based payments –(1)
Total tax on items credited/(charged) to the Group Statement of Changes in Equity ––
Tax relating to components of the Group Statement of Comprehensive Income
2015
£m
2014
£m
Current tax credit/(charge) on:
Pensions ––
Foreign exchange movements 14 58
Fair value of movement on available-for-sale investments (1) –
Fair value movements on cash flow hedges (3) 4
Deferred tax credit/(charge) on:
Pensions 291 67
Fair value movements on cash flow hedges (17) 35
Total tax on items credited to the Group Statement of Comprehensive Income 284 164
Note 6 Taxation
101Tesco PLC Annual Report and Financial Statements 2015
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