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BAKKAVOR ANNUAL REPORT AND ACCOUNTS 2012
notes to the consolidated financial statements
continued
13
TAX
52 weeks 52 weeks
ended ended
29 December 31 December
£m 2012 2011
Continuing operations
Current tax:
Current period 0.9 3.8
Prior period adjustment 4.9 (1.3)
Deferred tax:
Current period (note 25) (3.0) (5.5)
Prior period adjustment (note 25) – 0.5
2.8 (2.5)
Discontinued operations
Current tax 0.8 0.1
Deferred tax (note 25) – –
0.8 0.1
Corporation tax is calculated at 24.5% (2011: 26.5%) of the estimated assessable profit/(loss) for the period. Taxation for other jurisdictions is
calculated at the rates prevailing in the respective jurisdictions. Of the charge to current tax, £0.8 million (2011: £0.1 million) related to profits/(losses)
arising in the disposal group, classed as a discontinued operation during the period.
The charge/(credit) for the period can be reconciled to the profit/(loss) per the income statement as follows:
2012 2012 2011 2011
£m % £m %
Profit/(loss) before tax: 4.1 100.0 (61.7) (100.0)
Tax at the blended UK corporation tax rate of 24.5% (2011: 26.5%) 1.0 24.5 (16.3) (26.5)
Non-deductible expenses 1.0 24.5 17.4 28.2
Adjustment in respect of prior periods 4.9 119.5 (0.8) (1.3)
R&D tax credits (0.5) (12.2) (1.7) (2.8)
Tax effect of utilisation of tax losses not previously recognised (0.4) (9.8) (0.7) (1.1)
Tax effect of losses carried forward not recognised 1.1 26.8 1.6 2.6
Overseas taxes at different rates (0.2) (4.9) 0.9 1.5
Release of deferred tax on IBA reversal (2.1) (51.2) (0.8) (1.3)
Deferred tax change in rate (2.0) (48.9) (2.1) (3.4)
Tax charge/(credit) and effective tax rate for the period 2.8 68.3 (2.5) (4.1)
In addition to the amount credited to the income statement, a £0.9 million credit (2011: £5.0m credit) relating to tax has been recognised directly in
other comprehensive income. No other tax charges/credits have been recognised directly in equity.
During the year the relevant deferred tax balances have been re-measured as a result of the change in the UK main corporation tax rate to 24%, which
was substantively enacted on 26 March 2012 and became effective from 1 April 2012; and to 23%, which was substantively enacted on 3 July 2012
and will be effective from 1 April 2013.
Further reductions to the UK corporation tax rate were announced in the March 2012 Budget and December 2012 Autumn Statement. The changes
propose to reduce the rate to 21% by 1 April 2014. The changes had not been substantively enacted at the balance sheet date and therefore are not
recognised in these financial statements.
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