Setting new standards - Friends Life
Setting new standards - Friends Life
Setting new standards - Friends Life
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PARENT COMPANY ACCOUNTS<br />
ABBREVIATIONS AND DEFINITIONS<br />
Notes to the consolidated accounts continued<br />
13. Taxation<br />
(a) Tax charged to the income statement<br />
2006 2005<br />
£m £m<br />
Current tax expense<br />
UK corporation tax (30%) 49 107<br />
Adjustments in respect of prior periods (25) (7)<br />
Overseas taxation 21 19<br />
Tax relief on STICS interest payable (16) (7)<br />
Total current tax expense 29 112<br />
Deferred tax expense<br />
Origination and reversal of temporary differences 31 66<br />
Adjustments in respect of prior periods 10 -<br />
Total deferred tax expense 41 66<br />
Total tax expense 70 178<br />
Analysis:<br />
Policyholder tax 124 218<br />
Shareholder tax (54) (40)<br />
Total tax expense 70 178<br />
Policyholders’ tax is tax on the income and investment returns charged to policyholders of linked funds and with-profits funds.<br />
Shareholders’ tax is tax charged to shareholders on the profits of the Group.<br />
<strong>Friends</strong> Provident Annual Report & Accounts 2006 117
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