Annual Report & Accounts 2012 - Euromoney Institutional Investor ...

Euromoney Institutional Investor PLC Annual Report and Accounts 2012
www.euromoneyplc.com
Notes to the Consolidated
Financial Statements continued
9 Tax on profit on ordinary activities continued
The actual tax expense for the year is different from 25% of profit before tax for the reasons set out in the following reconciliation:
2012
£000
2011
£000
Profit before tax 92,368 68,197
Tax at 25% (2011: 27%) 23,092 18,413
Factors affecting tax charge:
Different tax rates of subsidiaries operating in overseas jurisdictions 3,767 2,021
Associate income reported net of tax (115) (110)
US state taxes 833 1,116
Goodwill and intangibles 32 (48)
Disallowable expenditure 1,325 1,001
Other items deductible for tax purposes (3,824) –
Effect of additional accelerated long-term incentive expense – 1,717
Tax impact of consortium relief (861) (354)
Deferred tax (credit)/charge arising from changes in tax laws (18) 229
Adjustments in respect of prior years (1,703) (1,458)
Total tax expense for the year 22,528 22,527
The UK government has indicated that it intends to enact a further reduction in the UK corporation tax rate of 1% to 22% by April 1 2014. The directors
expect that the future tax rate changes will reduce the UK deferred tax asset recognised but the actual impact will be dependent on the deferred tax
position at the time.
In addition to the amount charged to the Income Statement, the following amounts relating to tax have been directly recognised in other comprehensive
income:
2012
£000
2011
£000
Current tax (602) –
Deferred tax 1,329 (1,395)
727 (1,395)
80