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Notes to the financial statements

For the 52 weeks ended 1 March 2008

27. Deferred tax

  2008
£m 		2007
£m
The movements on the net deferred tax account are as follows:
Opening 29.6 41.6
Income statement charge (note 12) (28.6) (13.7)
Rate change impact (note 12) 1.0 –
Other movements – (0.3)
Tax on pensions and share schemes (charged)/credited to shareholders’ equity (22.8) 2.0
Closing (20.8) 29.6
The deferred tax amounts recognised are as follows:
Deferred tax assets:
– Deferred tax asset to be recovered after more than 12 months 46.6 74.4
Deferred tax liabilities:
– Deferred tax liability to be settled after more than 12 months (67.4) (44.8)
Net deferred tax (liability)/asset (20.8) 29.6

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:

Deferred tax assets Asset
provisions
£m 		Other
temporary
differences
£m 		Total
£m
At 1 April 2006 39.8 69.0 108.8
Income statement credit/(charge) 2.6 (39.0) (36.4)
Tax credited to equity 0.8 1.2 2.0
At 3 March 2007 43.2 31.2 74.4
At 4 March 2007 43.2 31.2 74.4
Income statement charge (5.6) (1.1) (6.7)
Rate change impact (2.4) (0.9) (3.3)
Tax charged to equity (1.1) (16.7) (17.8)
At 1 March 2008 34.1 12.5 46.6
Deferred tax liabilities Property
valuations
£m 		Accelerated
tax
depreciation
£m 		Other
£m 		Total
£m
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)
At 4 March 2007 (25.0) (20.5) 0.7 (44.8)
Income statement credit/(charge) 1.7 (11.8) (11.8) (21.9)
Rate change impact 1.5 2.2 0.6 4.3
Tax charged to equity – – (5.0) (5.0)
At 1 March 2008 (21.8) (30.1) (15.5) (67.4)

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 £1.4m (2007: £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 £28.0m (2007: £30.0m) in respect of capital losses that can be carried forward against future taxable gains. These losses are available indefinitely.