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Preliminary results for the year ended 28 January 2012

 

22 March 2012

 

Notes to the consolidated financial statements

6. Income tax expense

£ millions 2011/12 2010/11
UK corporation tax    
Current tax on profits for the year 68 73
Adjustments in respect of prior years (16) (10)
  52 63
Overseas tax    
Current tax on profits for the year 142 118
Adjustments in respect of prior years (31) (5)
  111 113
Deferred tax    
Current year 12 -
Adjustments in respect of prior years (12) 5
Adjustments in respect of changes in tax rates (5) (1)
  (5) 4
Income tax expense 158 180

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 28% (2010/11: 29%). Tax on exceptional items for the year is a credit of £7m, £5m of which relates to prior year items. In 2010/11 tax on exceptional items was a credit of £3m, 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 successfully against this tax liability and as a result received €169m from the French tax authorities in September 2009, representing a refund of the €138m and €31m of repayment settlement. The French tax authorities appealed this decision and the hearing took place in May 2011 with the Court of Appeal finding in Kingfisher's favour. The French tax authorities have appealed this decision to the final level of court although a date for this hearing has not yet been set. Therefore no income has yet been recognised relating to this receipt.

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