RBS 2005 Annual Report Download - page 155

section
03
Financial
statements
153
Notes on the accounts
Annual Report and Accounts 2005
Auditors’ remuneration
Amounts paid to the auditors for statutory audit and other services were as follows: Group
2005 2004
£m £m
Audit services
– Statutory audit 9.9 8.2
– Audit related including regulatory reporting* 7.0 1.1
16.9 9.3
Further assurance services 6.8 3.0
Tax services
– Compliance services 0.2 0.2
– Advisory services — 0.2
0.2 0.4
Other services 0.4 3.0
Total 24.3 15.7
* Includes fees relating to the transition to IFRS and work in respect of US Sarbanes-Oxley Act Section 404 reporting requirements.
The auditors’ remuneration for statutory audit of the company was £0.1 million (2004 – £0.1 million). Non–audit fees paid to the
auditors and their associates in the UK was £12.4 million (2004 – £6.4 million).
5Tax Group
2005 2004
£m £m
Current taxation:
UK corporation tax charge for the year at 30% 2,280 2,091
Over provision in respect of prior periods (101) (168)
Relief for overseas taxation (171) (212)
2,008 1,711
Deferred taxation:
Current year charge 477 333
Over provision in respect of prior periods (107) (49)
Tax charge for the year 2,378 1,995
The actual tax charge differs from the expected tax charge computed by applying the standard rate of UK corporation tax
of 30% as follows: 2005 2004
£m £m
Expected tax charge 2,381 2,185
Interest on subordinated debt not allowable for tax 79 —
Non-deductible items 230 110
Non-taxable items (166) (128)
Taxable foreign exchange movements (10) (10)
Foreign profits taxed at other rates 77 49
Unutilised losses brought forward and carried forward (5) 6
Adjustments relating to prior periods (208) (217)
Actual tax charge for the year 2,378 1,995
(1) Deferred tax assets of £51 million (2004 – £110 million) resulting from tax losses carried forward of £150 million (2004 – £291 million)
have not been recognised as it is currently not certain that the assets will be recoverable. These assets may be recoverable if the
losses can be offset against suitable future taxable profits arising in the same tax jurisdiction.