NATS-Annual-Report-2015

Annual Report and Accounts 2015 | NATS Holdings Limited
Financial Statements 110
Notes forming part of the
consolidated accounts
(continued)
11. Tax
2015 2014
£m £m
Corporation tax
Current tax 36.1 32.5
Adjustments in respect of prior year (0.5) (0.6)
35.6 31.9
Deferred tax (see note 22)
Origination and reversal of temporary timing differences 7.6 9.9
Effects of tax rate change on opening balance 0.2 (13.6)
7.8 (3.7)
43.4 28.2
Corporation tax is calculated at 21% (2014: 23%) of the estimated assessable profit for the year.
The charge for the year can be reconciled to the profit per the income statement as follows:
2015 2014
£m % £m %
Profit on ordinary activities before tax 200.3 157.5
Tax on profit on ordinary activities at standard rate
42.1 21.0 36.2 23.0
in the UK of 21% (2014: 23%)
Tax effect of change in corporation tax from
- - (13.7) (8.7)
21% to 20% (2014: 23% to 20%)
Patent box (1.1) (0.5) (0.9) (0.6)
Loss/(profit) on disposal - - (0.6) (0.4)
Goodwill impairment 3.6 1.8 7.4 4.7
Tax effect of prior year adjustments (0.5) (0.2) (1.0) (0.6)
R&D expenditure increased deductions (0.1) (0.1) - -
Other permanent differences (0.6) (0.3) 0.8 0.5
Tax charge for year at an effective tax rate
of 21.7% (2014: 17.9%)
Deferred tax credit taken directly to equity
(see note 22)
43.4 21.7 28.2 17.9
(76.4) (13.1)
Financial
Statements