Interim results for the 26 weeks ended 31 July 2010

 

16 September 2010

 

Notes to the condensed consolidated financial statements (UNAUDITED)

for the 26 weeks ended 31 July 2010

7. Income tax expense

£ millions Half year ended
31 July 2010
Half year ended
1 August 2010
Year ended
30 January 2010
UK corporation tax      
Current tax on profits for the period 60 27 85
Adjustments in respect of prior years - 4 (7)
  60 31 78
Overseas tax      
Current tax on profits for the period 48 46 85
Adjustments in respect of prior years - (1) (1)
  48 45 84
Deferred tax      
Current period (3) 14 4
Adjustments in respect of prior years - - 15
Adjustments in respect of changes in tax rates (2) - -
  (5) 14 19
       
Income tax expense 103 90 181

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 30% (2009/10: 30%), representing the best estimate of the effective rate for the full financial year. The effective tax rate for the year ended 30 January 2010 was 30%. Tax on exceptional items for the current period is a credit of £4m (2009/10: £nil), all of which relates to current year items. Tax on exceptional items for the year ended 30 January 2010 was a charge of £7m, all of which related to current year items.