Financial statements

Notes 6-10

10. Taxation

Analysis of tax credit in the year

The credit based on the profit for the year comprises:

  Notes 2008
£’000		 2007
£’000
UK corporation tax:      
– adjustment in respect of prior years   (617) (122)
Total current tax   (617) (122)
UK deferred tax:      
Origination and reversal of timing differences in respect of:      
– profit for the year   9,773 6,609
– adjustment in respect of prior years   (19,307) (17,421)
– credit in respect of intangible asset amortisation   (4,202) (2,405)
Total deferred tax 27 (13,736) (13,217)
Total taxation credit for the year   (14,353) (13,339)

Factors affecting tax credit for the year

Profit before taxation from continuing operations 4,423 10,630
Loss before taxation from discontinued operations – (578)
Group profit before taxation 4,423 10,052
Group profit before taxation at the standard rate of corporation tax in the UK of 30% (2007: 30%) 1,327 3,016
Effects of:    
– expenses not deductible for tax purposes 5,335 3,594
– movement in deferred taxation not recognised – (1)
– change in tax rate reflected in deferred tax asset 3,111 –
– adjustments relating to prior year corporation tax (617) (122)
– adjustments relating to prior year deferred tax (19,307) (17,421)
– charge in respect of intangible asset amortisation (4,202) (2,405)
Total taxation credit for the year (14,353) (13,339)

Factors that may affect future tax charges

The proposed change in the Budget Statement of 21 March 2007 to reduce the rate of corporation tax from 30 per cent to 28 per cent from 1 April 2008 has been reflected in the full deferred tax asset, provided and unprovided.