RBS 2013 Annual Report Download - page 406
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Notes on the consolidated accounts
404
6 Tax 2013 2012* 2011*
£m £m £m
Current tax
Charge for the year (307) (495) (168)
Over/(under) provision in respect of prior years 121 (63) 141
(186) (558) (27)
Deferred tax
Credit/(charge) for the year 375 101 (1,106)
(Under)/over provision in respect of prior year (571) 16 58
Tax charge for the year (382) (441) (1,075)
The actual tax charge differs from the expected tax credit computed by applying the standard rate of UK corporation tax of 23.25% (2012 - 24.5%; 2011
- 26.5%) as follows:
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 (1) (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 (2) 251 (47) 199
A
ctual tax charge (382) (441) (1,075)
*Restated
Notes:
(1) In recent years the UK Government has steadily reduced the rate of UK corporation tax, with the latest enacted rates standing at 21% with effect from 1 April 2014 and 20% with effect from 1 April
2015. The closing deferred tax assets and liabilities have been calculated in accordance with the rates enacted at the balance sheet date.
(2) Prior year adjustments include releases of tax provisions in respect of structured transactions and investment disposals and adjustments to reflect submitted tax computations in the UK and
overseas.