For the short period 1 April 2006 to 3 March 2007
| 2007 £m |
2006 £m |
||||
| Current tax: | |||||
| UK corporation tax | (94.0) | (63.0) | |||
| Double tax relief | 3.5 | 4.0 | |||
| Adjustments in respect of prior years | (0.9) | – | |||
| Total current UK tax charge | (91.4) | (59.0) | |||
| Overseas tax | (4.4) | (4.0) | |||
| Total current tax charge | (95.8) | (63.0) | |||
| Deferred tax: | |||||
| Origination and reversal of temporary differences | (16.5) | (33.0) | |||
| Adjustments in respect of prior years | 2.8 | – | |||
| Total tax expense in income statement | (109.5) | (96.0) |
| (b) | Factors affecting the tax charge The effective tax rate for the year of 37.0% (2006: 34.7%) after adjusting for the net income from associates, is higher than the standard rate of corporation tax in the UK of 30.0% (2006: 30.0%). The differences are explained below: |
| 2007 £m |
2006 £m |
||||
| Profit before tax | 296.9 | 272.4 | |||
| Profit before tax multiplied by the standard rate of corporation tax in the UK of 30% | (89.1) | (81.7) | |||
| Effects of: | |||||
| Expenses not deductible for tax purposes | (25.6) | (14.3) | |||
| Differences in effective tax rates on overseas earnings | 3.3 | – | |||
| Adjustments to tax charge in respect of prior years | 1.9 | – | |||
| Total tax expense in income statement | (109.5) | (96.0) |
| (c) | Factors that may effect future tax charges In the foreseeable future, Home Retail Group’s tax charge will continue to be influenced by the profile of profits earned in the different tax jurisdictions within the United Kingdom and the Republic of Ireland. |
| (d) | Impact of tax on exceptional items Tax on exceptional items of £5.3m relates to tax on current period and prior year exceptional costs. Current period exceptional costs of £15.8m include £7.3m not deductible for tax. Tax payable on prior year exceptional items amounts to £7.8m. |