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Notes to the financial statements 7

for the year ended 31 March 2012

Tax on profit on ordinary activities 2012

2011

£'000

£'000

3,274

15,635

763

1,411

4,037

17,046

(1,045)

2,614

Current tax UK corporation tax on (loss)/profit of the year at 26% (2011: 28%) Adjustments in respect of previous years Total current tax charge

Deferred tax Origination and reversal of timing differences Adjustment to tax charge in respect of previous period Change in tax rate - impact on deferred tax asset Pension cost credit in excess of pension cost relief

-

176

202

384

-

Total deferred tax charge

(14)

(843)

Tax charge on profit on ordinary activities

3,194

3,160 20,206

The tax assessed for the year is higher (2011: lower) than the standard rate of corporation tax in the UK 26% (2011: 28%). The differences are explained below.

(Loss)/profit on ordinary activities before tax

2012

2011

£'000

£'000

(31,490)

62,692

(8,187)

17,554

Profit on ordinary activities multiplied by the standard rate in the UK 26% (2011: 28%) Effects of: Expenses not deductible for tax purposes Adjustment to tax charge in respect of previous period

10,327

353

763

1,411

1,134

(2,586)

Other permanent differences

-

(2,664)

Deferred tax not recognised

-

2,978

4,037

17,046

Depreciation in excess of capital allowances and other timing differences

Current tax charge for the year

Factors affecting current and future tax charges During the year, as a result of changes in the UK main corporation tax rate from 26% to 24% that was substantively enacted on 26 March 2012 and that will be effective from 1 April 2012, the relevant deferred tax balances have been re-measured at 24%. Further reductions to the main rate are proposed in the March 2012 budget, these are expected to be enacted separately each year and propose to reduce the rate by 1% per annum to 22% by 1 April 2014. None of these rate reductions had been substantively enacted at the balance sheet date and, therefore, are not included in these financial statements. The impact of proposed changes is not expected to be material.

Keepmoat Annual Report and Financial Statements 2012Annual Report and Financial Statements 2012

31

Keepmoat plc Annual report and accounts 2012  
Keepmoat plc Annual report and accounts 2012  
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