Financial statements
NOTES TO THE FINANCIAL STATEMENTS
9. Taxation
|
2010 |
2009
|
|
|
Analysis of charge in year |
||
|
Current tax |
10.9 |
12.1 |
|
Deferred tax |
2.9 |
0.6 |
|
Deferred tax arising on abolition of industrial buildings allowances |
- |
5.8 |
|
Total deferred tax (note 28) |
2.9 |
6.4 |
|
Total tax |
13.8 |
18.5 |
UK corporation tax is calculated at 28% (2009 28%) of the estimated assessable profit for the year. The deferred tax charge for the year ended 31 March 2009 was increased by a non-recurring charge of £5.8m arising from the phasing out of industrial buildings allowances over the three years commencing 1 April 2008 as contained in the 2008 Finance Act.
The tax for the year differs from the theoretical amount that would arise using the standard rate of corporation tax in the UK (28%) as follows:
|
2010 |
2009 |
|
|
Profit before tax |
55.1 |
39.9 |
|
Profit before tax multiplied by the standard rate of UK corporation tax of 28% (2009 28%) |
15.4 |
11.2 |
|
Effects of: |
||
|
Expenses not deductible for tax purposes |
1.1 |
3.0 |
|
Other |
(1.1) |
(0.6) |
|
Tax relief no longer available on industrial buildings |
- |
5.8 |
|
Adjustments to tax charge in respect of prior year |
(1.6) |
(0.9) |
|
Tax charge for year |
13.8 |
18.5 |
The average effective tax rate for the year was 25% (2009 46%).
In addition to the amount debited to the income statement, a deferred tax debit relating to share-based payments of £0.3m (2009 debit £0.2m) and a deferred tax credit relating to actuarial losses on defined benefit schemes of £2.1m (2009 credit £2.3m) has been taken directly to equity.