Notes to the Accounts For the year ended 31 December 2007

Previous page | Next page

17. Deferred tax

The following are the major deferred tax liabilities and assets recognised by the Group, and the movements thereon, during the current and prior reporting periods.

  Accelerated tax
Tax losses
At 1 January 2006 275 (6,260) (2,621) (502) (9,108)
Recognised in equity for the year 1,318 1,318
Recognised in profit or loss for the year 13 (742) (788) (439) (1,956)
Changes in rate 31 31
Exchange differences (2) 264 6 268
At 1 January 2007 288 (5,686) (3,114) (935) (9,447)
Recognised in equity for the year 3,652 3,652
Recognised in profit or loss for the year (104) 87 1,708 (1,227) 464
Exchange differences 384 384
At 31 December 2007 184 (1,947) (1,022) (2,162) (4,947)

Certain deferred tax assets and liabilities have been offset in accordance with the Group's accounting policy. The following is the analysis of the deferred tax balances (after offset) for balance sheet purposes:

Deferred tax assets (4,998) (9,447)
Deferred tax liabilities 17
  (4,981) (9,447)

At 31 December 2007, unremitted earnings of overseas Group companies amounted to £78.6m (2006: £40.2m). Unremitted earnings may be liable to some overseas and UK tax (after allowing for double taxation relief) if they were to be distributed as dividends. However, no tax is expected to be payable due to the split of unremitted earnings between lower taxed jurisdictions and higher taxed jurisdictions.

Certain of the Group's overseas operations have current and prior year tax losses, the future utilisation of which is uncertain. Accordingly the Group has not recognised a deferred tax asset of £1.3m (2006: £0.8m) in respect of tax losses of overseas companies. These tax losses are available to offset future taxable profits in the respective jurisdictions.

All of the deferred tax asset for losses of £1.0m is dependent on generating future taxable profits. Of the recognised deferred tax asset, £nil is recognised within territories that were loss making in the current year.

Back to Top