RBS 2009 Annual Report Download - page 269

Financial statements
Notes on the accounts
267RBS Group Annual Report and Accounts 2009
6 Tax Group
2009 2008 2007
£m £m £m
Current taxation:
Charge for the year 552 1,230 2,514
Over provision in respect of prior periods (191) (254) (39)
Relief for overseas taxation —(34) (198)
361 942 2,277
Deferred taxation:
(Credit)/charge for the year (1,041) (3,167) 95
Over/(under) provision in respect of prior periods 309 (98) (328)
Tax (credit)/charge for the year (371) (2,323) 2,044
The actual tax (credit)/charge differs from the expected tax (credit)/charge computed by applying the standard rate of UK corporation tax of 28%
(2008 – 28.5%; 2007 – 30%) as follows:
2009 2008 2007
£m £m £m
Expected tax (credit)/charge (727) (11,638) 2,950
Non-deductible goodwill impairment 102 8,292 12
Unrecognised timing differences (274) 274 29
Other non-deductible items 508 378 222
Non-taxable items
– gain on redemption of own debt (693) ——
– other (410) (491) (595)
Taxable foreign exchange movements (1) 80 16
Foreign profits taxed at other rates 320 203 (25)
Reduction in deferred tax liability following change in the rate of UK corporation tax — — (189)
Losses in year not recognised 780 942 2
Losses brought forward and utilised (94) (11) (11)
Adjustments in respect of prior periods (1) 118 (352) (367)
Actual tax (credit)/charge (371) (2,323) 2,044
Note:
(1) The 2008 and 2007 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 14.3% (2008 – 5.7%; 2007 – 20.8%).
7 Profit attributable to preference shareholders and paid-in equity holders Group
2009 2008 2007
£m £m £m
Preference shareholders:
Non-cumulative preference shares of US$0.01 342 293 152
Non-cumulative preference shares of €0.01 201 183 94
Non-cumulative preference shares of £1
– Issued to UK Financial Investments Limited (1) 274 ——
– Other 61 60 —
Paid-in equity holders:
Interest on securities classified as equity, net of tax 57 60 —
Total 935 596 246
Notes:
(1) Includes £50 million redemption premium on repayment of preference shares.
(2) 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.
(3) Between 1 January 2010 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 2010.