Notes to the Financial Statements

For the short period 1 April 2006 to 3 March 2007

27. DEFERRED TAX

  2007
£m
2006
£m
The movements on the net deferred tax account are as follows:    
Opening 41.6 61.3
Income statement charge (13.7) (33.1)
Other movements (0.3) 11.4
Tax on pensions and share schemes credited to shareholders equity (refer to Statement of Recognised Income and Expense) 2.0 2.0
Closing 29.6 41.6
The deferred tax amounts recognised are as follows:    
Deferred tax assets:    
– Deferred tax asset to be recovered after more than 12 months 74.4 108.8
Deferred tax liabilities:    
– Deferred tax liability to be settled after more than 12 months (44.8) (67.2)
Net deferred tax asset 29.6 41.6

The movement in deferred tax assets and liabilities during the year, without taking into consideration the offsetting of balances within
the same tax jurisdiction, is as follows:

(a) Deferred tax assets
  Asset
provisions
£m
Other
temporary
differences
£m
Total
£m
At 1 April 2005 42.0 68.0 110.0
Income statement credit/(charge) (14.1) (1.0) (15.1)
Other 11.9 11.9
Tax credited to equity (refer to Statement of Recognised Income and Expense) 2.0 2.0
At 31 March 2006 39.8 69.0 108.8
At 1 April 2006 39.8 69.0 108.8
Income statement credit/(charge) 2.6 (39.0) (36.4)
Tax credited to equity (refer to Statement of Recognised Income and Expense) 0.8 1.2 2.0
At 3 March 2007 43.2 31.2 74.4

(b) Deferred tax liabilities
  Property
valuations
£m
Accelerated
tax
depreciation
£m
Other
£m
Total
£m
At 1 April 2005 (29.7) (15.0) (4.0) (48.7)
Income statement credit/(charge) 2.0 (5.0) (15.5) (18.5)
At 31 March 2006 (27.7) (20.0) (19.5) (67.2)
At 1 April 2006 (27.7) (20.0) (19.5) (67.2)
Income statement credit/(charge) 2.7 (0.5) 20.2 22.4
At 3 March 2007 (25.0) (20.5) 0.7 (44.8)

Deferred tax assets are recognised for tax loss carry-forwards and other temporary differences to the extent that the realisation of the related tax benefit through the future taxable profits is probable.

Home Retail Group did not recognise deferred tax assets of £1.5m (2006: £1.5m) in respect of losses that can be carried forward against future taxable income. In addition, Home Retail Group did not recognise deferred tax assets of £30.0m (2006: £30.9m) in respect of capital losses that can be carried forward against future taxable gains. These losses are available indefinitely.

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