RBS 2007 Annual Report Download - page 169

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22 Deferred taxation
Provision for deferred taxation has been made as follows:
Group Company
2007 2006 2007 2006
£m £m £m £m
Deferred tax liability 5,510 3,264 3—
Deferred tax asset (included in Prepayments, accrued income and other assets, Note 19) (2,944) (156) —(3)
Net deferred tax 2,566 3,108 3(3)
Group
Fair Tax
Accelerated value of Cash losses
capital Deferred IAS financial flow carried
Pension allowances Provisions gains transition instruments Intangibles hedging forward Other Total
£m £m £m £m £m £m £m £m £m £m £m
At 1 January 2006 (1,182) 3,653 (664) 121 (327) (108) 148 (45) — (57) 1,539
Charge to income statement 57 254 360 131 (365) (34) 127 (1) — (30) 499
Charge to equity directly 519 — — 666 (2) 2 — (41) — (14) 1,130
Other (22) (89) 20 4 25 8 (20) (10) — 24 (60)
At 1 January 2007 (628) 3,818 (284) 922 (669) (132) 255 (97) — (77) 3,108
Acquisition/(disposals)
of subsidiaries (35) (284) (539) 50 — (184) 1,076 — (867) 83 (700)
Charge to income statement 43 (138) (44) (141) 46 72 (65) (48) (57) 99 (233)
Charge to equity directly 660 — — (187) — 17 — (107) — 43 426
Other (2) (12) (19) (38) 4 (6) 28 — 20 (10) (35)
At 31 December 2007 38 3,384 (886) 606 (619) (233) 1,294 (252) (904) 138 2,566
Company *
£m
At 1 January 2006, 31 December 2006 and 1 January 2007 (3)
Charge to equity directly 6
At 31 December 2007 3
* All relates to hedging.
Notes:
(1) Deferred tax assets of £687 million (2006 – £86 million) have not been recognised in respect of tax losses carried forward of £2,043 million (2006 – £254 million) as it is not
considered probable that taxable profits will arise against which they could be utilised. Of these losses, £75 million will expire within one year, £238 million within five years and
£1,376 million thereafter. The balance of tax losses carried forward has no time limit.
(2) Deferred tax liabilities of £977 million (2006 – £649 million) have not been recognised in respect of retained earnings of overseas subsidiaries and held-over gains on the
incorporation of overseas branches. Retained earnings of overseas subsidiaries are expected to be reinvested indefinitely or remitted to the UK free from further taxation.
No taxation is expected to arise in the foreseeable future in respect of held-over gains.
167
RBS Group • Annual Report and Accounts 2007
Financial statements