RBS 2013 Annual Report Download - page 130
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Business review
128
Tax
Managed and statutory
2013 2012* 2011*
£m £m £m
Tax charge (382) (441) (1,075)
% % %
UK corporation tax rate 23.25 24.50 26.50
*Restated – see page 102.
The actual tax charge differs from the expected tax credit computed by applying the standard rate of UK corporation tax as follows:
Managed and statutory
2013 2012* 2011*
£m £m £m
Expected tax credit 1,916 1,293 370
Sovereign debt impairment where no deferred tax asset recognised — — (275)
Other losses in year where no deferred tax asset recognised (879) (511) (530)
Foreign profits taxed at other rates (196) (383) (417)
UK tax rate change impact (313) (149) (112)
Unrecognised timing differences (8) 59 (20)
Non-deductible goodwill impairment (247) — —
Items not allowed for tax
- losses on disposals and write-downs (20) (49) (72)
- UK bank levy (47) (43) (80)
- regulatory and legal actions (144) (93) —
- employee share schemes (11) (9) (113)
- other disallowable items (202) (246) (285)
Non-taxable items
- gain on sale of RBS Aviation Capital — 26 —
- gain on sale of WorldPay (Global Merchant Services) 37 — 12
- other non-taxable items 171 104 242
Taxable foreign exchange movements (25) (1) 4
Losses brought forward and utilised 36 2 2
Reduction in carrying value of deferred tax asset in respect of losses in
- UK (701) — —
- Australia — (191) —
- Ireland — (203) —
A
djustments in respect of prior years 251 (47) 199
A
ctual tax charge (382) (441) (1,075)
*Restated - see page 102.
2013 compared with 2012 - managed and statutory
The tax charge in the year ended 31 December 2013 reflects losses in
low tax regimes (principally Ireland), losses in overseas subsidiaries for
which a deferred tax asset has not been recognised (principally Ireland),
a reduction in the carrying value of the deferred tax asset in respect of
UK losses and the effect of the reduction of 3% in the rate of UK
corporation tax enacted in July 2013.
2012 compared with 2011 - managed and statutory
The high tax charge in 2012 reflects profits in high tax regimes
(principally US) and losses in low tax regimes (principally Ireland), losses
in overseas subsidiaries for which a deferred tax asset has not been
recognised (principally Ireland), the reduction in the carrying value of
deferred tax assets in Ireland in view of continuing losses, the reduction
in the carrying value of deferred tax assets in Australia following the
strategic changes to the Markets and International Banking businesses
announced in January 2012, and the effect of the two reductions of 1% in
the rate of UK corporation tax enacted in March 2012 and July 2012 on
the net deferred tax balance.