Barclays plc - Annual Report 2008 - Financial statements - The Group

Notes to the accounts
For the year ended 31st December 2008
19 Deferred tax
The components of deferred taxes disclosed on the balance sheet are as follows:
2008 2007
£m £m
Deferred tax liability 304 855
Deferred tax asset 2,668 1,463
Net deferred tax 2,364 608
Deferred taxes are calculated on all temporary differences under the liability method. The movement on the deferred tax account is as follows:
Pensions Allowance
Fixed Available and other for Tax losses
asset timing for sale Cash flow retirement impairment Other carried Share based
differences investments hedges benefits on loans provisions forward payments Other Total
£m £m £m £m £m £m £m £m £m £m
Liabilities (803) (101) (51) – – – – – (771) (1,726)
Assets – – 44 491 108 377 215 428 671 2,334
At 1st January 2008 (803) (101) (7) 491 108 377 215 428 (100) 608
Income statement 124 8 5 (90) 223 (10) 598 (215) 227 870
Equity – 103 (161) – – – 750 (33) (13) 646
Acquisitions and
disposals (195) – – – – 56 – 75 (211) (275)
Exchange and
other adjustments 16 1 41 2 25 109 96 87 138 515
(858) 11 (122) 403 356 532 1,659 342 41 2,364
Liabilities (945) (46) (368) – – – – – (1,075) (2,434)
Assets 87 57 246 403 356 532 1,659 342 1,116 4,798
At 31st December 2008 (858) 11 (122) 403 356 532 1,659 342 41 2,364
Liabilities (705) (116) – – – – – – (702) (1,523)
Assets – – 91 622 69 436 1 380 406 2,005
At 1st January 2007 (705) (116) 91 622 69 436 1 380 (296) 482
Income statement (118) 1 (96) 28 165 214 100 99 393
Equity – 13 (132) – – – – (63) (125) (307)
Acquisitions and
disposals – – – – – 45 – – (12) 33
Exchange and
other adjustments 20 1 34 (35) 11 (269) – 11 234 7
(803) (101) (7) 491 108 377 215 428 (100) 608
Liabilities (803) (101) (51) – – – – – (771) (1,726)
Assets – – 44 491 108 377 215 428 671 2,334
At 31st December 2007 (803) (101) (7) 491 108 377 215 428 (100) 608
The amount of deferred tax liability expected to be settled after more than 12 months is £1,949m (2007: £1,468m).
The amount of deferred tax asset expected to be recovered after more than 12 months is £4,593m (2007: £1,950m).
The deferred tax assets balance includes £2,139m (2007: £450m) which is the excess deferred tax assets over deferred tax liabilities in entities which
have suffered a loss in either the current or prior year. This is based on management assessment that it is probable that the relevant entities will have
taxable profits against which the temporary differences can be utilised.
Deferred tax assets have not been recognised in respect of deductible temporary differences (gross) £9m (2007: £247m), unused tax losses (gross)
of £4,083m (2007: £1,683m) and unused tax credits of £46m (2007: £126m). The following tax losses expire: £3,854m in 2028. The other tax losses,
tax credits and temporary differences do not expire under current tax legislation. Deferred tax assets have not been recognised in respect of these items
because it is not probable that future taxable profit will be available against which the Group can utilise benefits. The unused tax losses include amounts
relating to non-UK branches of Barclays Bank PLC where the future tax benefit might be restricted to the amount in excess of the UK rate.
The amount of temporary differences associated with investments in subsidiaries, branches, associates and joint ventures for which deferred tax liabilities
have not been recognised is £8,429m (2007: £5,722m).
220 Barclays PLC Annual Report 2008 | Find out more at www.barclays.com/annualreport08