OVERVIEW
137
Derivative financial instruments £m
2.7 0.4 0.9 – – 4.0 5.2 – – 9.2 1.0 8.2 9.2 0.2 3.8 4.0
7.2 (0.1) – (3.8) – 3.3 – 5.6 – 8.9 8.9 – 8.9 3.3 – 3.3
Capital allowances £m
(37.1) 2.4 – – 1.1 (33.6) 2.7 – 3.6 (27.3) 4.6 (31.9) (27.3) 3.9 (37.5) (33.6)
Other timing differences £m
(0.9) (2.5) 0.1 0.3 0.2 (2.8) (0.8) 0.2 0.8 (2.6) 3.9 (6.5) (2.6) 2.3 (5.1) (2.8)
Total £m
(26.1) (0.2) 1.0 (2.5) 1.3 (26.5) 6.6 7.0 4.4 (8.5) 21.7 (30.2) (8.5) 12.3 (38.8) (26.5)
*The opening balance has been restated following the adoption of IFRS 11, see notes 1 and 16 for details.
At 31 March 2015, £21.2m (2014: £12.3m restated) of the deferred tax asset and £30.2m (2014: £38.8m) of the deferred tax liability is expected to be recovered after more than one year. As at 31 March 2015, the Group had unused trading losses (tax effect) of £29.7m (2014: £24.8m restated) available for offset against future profits. A deferred tax asset has been recognised in respect of £9.2m (2014: £4.0m restated) of such losses and recognition is based on management’s projections of future profits in the relevant companies. No deferred tax asset has been recognised in respect of the remaining £20.5m (2014: £20.8m restated) due to the uncertainty of future profit streams. Tax losses may be carried forward indefinitely in the relevant companies. No liability has been recognised on the aggregate amount of temporary differences associated with undistributed earnings of subsidiaries. This is because the Group is in a position to control the timing and method of the reversal of the differences and it is probable that such differences will not give rise to a tax liability in the foreseeable future. The total temporary difference at 31 March 2015 amounted to £140.7m (2014: £138.7m) and the unrecognised deferred tax on the unremitted earnings is estimated to be £0.4m (2014: £0.5m) which relates to taxes payable on repatriation and dividend withholding taxes levied by overseas jurisdictions. UK tax legislation relating to company distributions provides for exemption from tax for most repatriated profits, subject to certain exemptions.
Company At 1 April 2013 (Charge) credit to Income Statement Credit (charge) to equity At 31 March 2014 Charge to Income Statement Credit to equity At 31 March 2015
Retirement benefit schemes £m
2.0 (0.4) 1.0 2.6 (0.5) 1.2 3.3
Derivative financial instruments £m
0.2 – (0.1) 0.1 – 0.1 0.2
Other timing differences £m
0.4 0.1 0.3 0.8 – 0.2 1.0
At 31 March 2015, £4.5m (2014: £3.5m) of the deferred tax asset is expected to be recovered after more than one year. As at 31 March 2015, the Company has unused tax losses (tax effect) of £5.0m (2014: £4.2m) available for offset against future profits. No deferred tax asset has been recognised in respect of the losses due to the unpredictability of future profit streams. Tax losses may be carried forward indefinitely.
Total £m
2.6 (0.3) 1.2 3.5 (0.5) 1.5 4.5
GOVERNANCE
2.0 (0.4) – 1.0 – 2.6 (0.5) 1.2 – 3.3 3.3 – 3.3 2.6 – 2.6
Tax losses £m
FINANCIAL STATEMENTS
Group At 1 April 2013* (Charge) credit to Income Statement (note 9) Credit relating to discontinued operations Credit (charge) to equity Exchange At 31 March 2014 (Charge) credit to Income Statement (note 9) Credit to equity Exchange At 31 March 2015 Deferred tax assets Deferred tax liabilities At 31 March 2015 Deferred tax assets Deferred tax liabilities At 31 March 2014
Retirement benefit scheme £m
ADDITIONAL INFORMATION
Deferred tax is provided in full on temporary differences under the liability method using applicable local tax rates. Deferred tax assets and liabilities are only offset where there is a legally enforceable right of offset and there is an intention to settle the balances net.
STRATEGIC REVIEW
19. Deferred tax