Note 22
22. Deferred taxation
Deferred tax is calculated in full on temporary timing differences under the liability method using a tax rate of 28% (2008 28%).
The movement on the deferred taxation account is as shown below:
| 2009 | 2008 |
|---|---|---|
At 31 March 2008 | 21.7 | 30.5 |
Profit and loss credit | (12.6) | (16.2) |
Acquisitions – through business combinations | 2.2 | 7.2 |
Statement of recognised income and expense credit | 0.1 | 0.2 |
At 29 March 2009 | 11.4 | 21.7 |
| Accelerated | Tax | Short-term | Acquired | Total |
|---|---|---|---|---|---|
Deferred taxation liabilities |
|
|
|
|
|
At 31 March 2008 | 3.3 | – | 0.4 | 36.2 | 39.9 |
Profit and loss credit | (0.3) | – | – | (5.7) | (6.0) |
Reclassification | (2.8) | – | – | – | (2.8) |
Acquisitions – through business combinations | – | – | – | 1.2 | 1.2 |
At 29 March 2009 | 0.2 | – | 0.4 | 31.7 | 32.3 |
|
|
|
|
|
|
At 31 March 2008 | (4.1) | (0.1) | (14.0) | – | (18.2) |
Profit and loss credit | (3.1) | – | (3.5) | – | (6.6) |
Reclassification | 2.8 | – | – | – | 2.8 |
Statement of recognised income and expense credit | – | – | 0.1 | – | 0.1 |
Acquisitions – through business combinations | 0.1 | (0.4) | 1.3 | – | 1.0 |
At 29 March 2009 | (4.3) | (0.5) | (16.1) | – | (20.9) |
|
|
|
|
| 11.4 |
|
|
|
|
| 21.7 |
Deferred tax assets have not been recognised where they relate to losses in companies where their future utilisation against profits cannot be reasonably foreseen. There is an unrecognised deferred tax asset at the balance sheet date of £6.1 million (2008 £1.8 million).
Deferred tax assets and liabilities are only offset where there is a legally enforceable right to do so and there is an intention to settle the balances net.
No deferred tax has been provided for on unremitted earnings of Group companies overseas as these are considered permanently employed in the business of these companies and, in the case of joint ventures and associates, the taxes would not be material. The aggregate amount of temporary differences associated with interests in joint ventures for which deferred tax liabilities have not been recognised totalled approximately £1.3 million at 29 March 2009.
