Savills plc - Investor relations

NOTES TO THE ACCOUNTSyear ended 31 December 20039. Tax on profit on ordinary activities (continued)Year toYear to31 December 2003 31 December 2002£'000£'000The tax for the year is higher (2002 - higher) than the standard rate of corporation tax in the UK (30%)The differences are explained below:Profit on ordinary activities before tax 35,264 20,381Profit on ordinary activites multiplied by standard rate of corporation tax in the UK of 30% (2002 - 30%) 10,579 6,114Effects of:Adjustments to tax in respect of prior year 700 (378)Adjustments in respect of foreign tax rates 672 724Expenses not deductible for tax purposes 1,639 3,819Capital allowances in excess of depreciation (152) 2213,438 10,301Deferred taxation assetGroup Group Company CompanyYear to Year to Year to Year to31 December 2003 31 December 2002 31 December 2003 31 December 2002£'000 £'000 £'000 £'000Comprising:Accelerated capital allowances 267 437 297 283Short term timing differences 1,879 593 - -Deferred tax asset 2,146 1,030 297 283At 1 January 2003 1,030 283Amount credited to profit & loss 1,029 14Exchange rate fluctuations 87 -At 31 December 2003 2,146 29756