Cohesive Consistent Confident

Henry Boot PLC
Annual Report and Financial Statements for the year ended 31 December 2015
www.henryboot.co.uk
Stock Code: BHY
Financial Statements
Notes to the Financial Statements continued
for the year ended 31 December 2015
6. Finance costs
Interest on bank loans and overdrafts 1,087 1,127
Interest on other loans and payables 155 65
Fair value adjustments on trade payables 310 288
Fair value adjustments on borrowings 59 64
Provisions: unwinding of discount (note 26) 6 6
1,617 1,550
7. Tax
Current tax:
UK corporation tax on profits for the year 5,721 4,607
Adjustments in respect of earlier years (127) (160)
Total current tax 5,594 4,447
Deferred tax (note 17):
Origination and reversal of temporary differences 1,512 623
Adjustments in respect of earlier years — (260)
Adjustments in respect of change in UK corporation tax rate 354 —
Total deferred tax 1,866 363
Total tax 7,460 4,810
Corporation tax is calculated at 20.25% (2014: 21.49%) of the estimated assessable profit for the year.
As a result of the change in the UK corporation tax rate from 20% to 19% effective from 1 April 2017 and from 19% to 18%
effective from 1 April 2020, both of which were substantively enacted on 26 October 2015, deferred tax balances at the year end
have been measured at 20% and 18% (2014: 20%) being the rate at which timing differences are expected to reverse.
Subsequently, a further reduction to the UK corporation tax rate has been announced reducing the rate to 17% from 1 April 2020.
The change had not been substantively enacted at the Statement of Financial Position date and, therefore, is not recognised in
these Financial Statements. The impact of this change on the deferred tax position of the Group is not expected to be material.
The charge for the year can be reconciled to the profit per the Statement of Comprehensive Income as follows:
Profit before tax 32,410 28,312
Tax at the UK corporation tax rate 20.25 21.49
Effects of:
Permanent differences (0.22) (2.42)
Short-term timing differences — (0.61)
Tax losses for which no deferred tax asset is recognised 2.86 —
Adjustment in respect of earlier years (0.39) (0.57)
Adjustment in respect of change in UK corporation tax rate 1.09 —
Joint venture results reported net of tax (0.58) (0.90)
Effective tax rate 23.01 16.99
2015
£’000
2015
£’000
2015
£’000
In addition to the amount charged to profit for the year, the following amounts relating to tax have been recognised in other
comprehensive income:
2015
£’000
Deferred tax:
– property revaluations 509 —
– actuarial (gain)/loss (1,439) 2,092
– cash flow hedge (4) (17)
Total tax recognised in other comprehensive income (934) 2,075
2015
%
2014
£’000
2014
£’000
2014
£’000
2014
%
2014
£’000
104