Preliminary results for the year ended 29 January 2011
24 March 2011
Notes to the consolidated financial statements
6. Income tax expense
|UK corporation tax|
|Current tax on profits for the year||73||66|
|Adjustments in respect of prior years||(10)||(7)|
|Current tax on profits for the year||118||104|
|Adjustments in respect of prior years||(5)||(1)|
|Adjustments in respect of prior years||5||15|
|Adjustments in respect of changes in tax rates||(1)||–|
|Income tax expense||180||181|
The effective rate of tax on profit before exceptional items and excluding tax adjustments in respect of prior years and changes in tax rates is 29% (2009/10: 30%). Tax on exceptional items for the year is a credit of £3m, all of which relates to current year items. In 2009/10 tax on exceptional items was a charge of £7m, all of which related to current year items.
Kingfisher paid €138m tax to the French tax authorities in the year ended 31 January 2004 as a consequence of the Kesa Electricals demerger and recorded this as an exceptional tax charge. Kingfisher appealed against this tax liability and the tribunal found in favour of Kingfisher in June 2009. As a result, on 7 September 2009 the Group received €169m (£148m) from the French tax authorities, representing a refund of the €138m and €31m of repayment supplement. The French tax authorities have appealed against this decision and the appeal court hearing date is awaited. No income has therefore been recognised in respect of this receipt.