Consolidated profit and loss account - Stagecoach Group

Notes to the accounts 2003
Note 7 Taxation on (loss)/profit on ordinary activities
(a) Analysis of charge in the year 2003 2002
Performance Goodwill and Results Performance Goodwill and Results
pre goodwill exceptional for year pre goodwill exceptional for year
and exceptionals items and exceptionals items
»m »m »m »m »m »m
Current tax:
UK corporation tax at 30% (2002 ^ 30%) 24.7 Nil 24.7 12.6 Nil 12.6
Share of joint ventures’ current tax 2.4 Nil 2.4 0.2 Nil 0.2
Share of associates’ current tax 0.3 Nil 0.3 3.1 Nil 3.1
Foreign tax (current year) 3.2 Nil 3.2 2.8 Nil 2.8
Foreign tax (adjustments in respect of prior periods) (3.6) Nil (3.6) (0.3) Nil (0.3)
Total current tax 27.0 Nil 27.0 18.4 Nil 18.4
Deferred tax:
Origination and reversal of timing differences (0.2) (3.8) (4.0) 7.4 (9.2) (1.8)
Adjustments in respect of prior periods 2.0 Nil 2.0 (1.6) Nil (1.6)
Total deferred tax 1.8 (3.8) (2.0) 5.8 (9.2) (3.4)
Tax on (loss)/profit on ordinary activities 28.8 (3.8) 25.0 24.2 (9.2) 15.0
(b) Factors affecting tax charge for the year 2003 2002
»m »m
(Loss)/profit on ordinary activities before tax (500.2) 42.0
(Loss)/profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 30% (150.1) 12.6
Effects of:
Goodwill amortisation 7.7 11.6
Impairment loss 172.5 Nil
Non-deductible expenditure 4.4 0.7
Capital allowances for period in excess of depreciation (4.3) (7.1)
Losses not utilised (2.1) 4.1
Movement in general provisions and other short term timing differences 5.6 2.8
Foreign taxes differences (3.1) (4.8)
Adjustments to tax charge in respect of prior periods (3.6) (1.5)
Current tax charge for the year (note 7(a)) 27.0 18.4
(c) Factors that may affect future tax charges
No provision has been made for deferred tax on rolled over gains. The total amount unprovided for is »3.3m (2002 ^ »3.3m).
No deferred tax is recognised on the unremitted earnings of overseas subsidiaries, associates and joint ventures unless a binding agreement
exists at the balance sheet date to remit such earnings in the future.
Deferred tax assets in respect of corporation tax losses carried forward within UK companies are provided against where the recoverability
is in doubt.
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