RBS 2008 Annual Report Download - page 196

195RBS Group Annual Report and Accounts 2008
The actual tax charge differs from the expected tax charge computed by applying the standard rate of UK corporation tax of 28.5% (2007 – 30%;
2006 – 30%) as follows:
2008 2007 2006
£m £m £m
Expected tax (credit)/charge (11,590) 2,950 2,756
Non-deductible goodwill impairment 8,292 12 —
Unrecognised timing differences 274 29 —
Other non-deductible items 330 222 288
Non-taxable items (491) (595) (251)
Taxable foreign exchange movements 80 16 5
Foreign profits taxed at other rates 203 (25) 63
Reduction in deferred tax liability following change in the rate of UK corporation tax — (189) —
Losses in year not recognised 942 2—
Losses brought forward and utilised (11) (11) 14
Adjustments in respect of prior periods (1) (352) (367) (186)
Actual tax (credit)/charge (2,323) 2,044 2,689
Note:
(1) Prior period tax adjustments principally comprise releases of tax provisions in respect of structured transactions and investment disposals, and adjustments to reflect submitted tax computations
in the UK and overseas.
The effective tax rate for the year was 5.7% (2007 – 20.8%; 2006 – 29.3%). The deferred tax credit is net of £210 million deferred tax expense arising
from the write-down of the carrying value of previously recognised deferred tax assets.
7 Profit attributable to other owners Group
2008 2007 2006
£m £m £m
Dividends paid to other owners:
Non-cumulative preference shares of US$0.01 293 152 99
Non-cumulative preference shares of €0.01 183 94 92
Non-cumulative preference shares of £1 60 ——
Interest on securities classified as equity, net of tax 60 ——
Total 596 246 191
Notes:
(1) In accordance with IAS 32, certain preference share issued by the company are included in subordinated liabilities and the related finance cost in interest payable.
(2) Between 1 January 2009 and the date of approval of these accounts, dividends amounting to US$163 million have been declared in respect of equity preference shares for payment on 31 March 2009.
8 Ordinary dividends
Prior year ordinary dividends per share in the table below have been restated for the effect of the rights issue in June 2008 and the capitalisation
issue in September 2008. Group
2008 2007 2006 2008 2007 2006
p per share p per share p per share £m £m £m
Final dividend for previous year declared during the current year 19.3 18.5 14.8 2,312 2,091 1,699
Interim dividend — 8.5 6.8 —953 771
Total dividends paid on ordinary equity shares 19.3 27.0 21.6 2,312 3,044 2,470
9 Profit dealt with in the accounts of the company
As permitted by section 230(3) of the Companies Act 1985, the primary financial statements of the company do not include an income statement.
Condensed information is set out below: Company
2008 2007 2006
£m £m £m
Dividends received from banking subsidiary 4,639 2,330 3,502
Dividends received from other subsidiaries 163 415 229
Total income 4,802 2,745 3,731
Interest receivable from subsidiaries 793 460 516
Interest payable to subsidiaries (495) (307) (246)
Other net interest payable and operating expenses (796) (526) (515)
Write-down of investments in subsidiaries (14,321) ——
Operating (loss)/profit before tax (10,017) 2,372 3,486
Tax 415 127 13
(Loss)/profit for the year (9,602) 2,499 3,499
(Loss)/profit attributable to:
Ordinary shareholders (10,198) 2,253 3,308
Other owners 596 246 191
(9,602) 2,499 3,499