BOC Report and accounts 2005 - Alle jaarverslagen

100 The BOC Group plc Annual report and accounts 2005 Notes to the financial statements
4.Tax continued
The components of deferred tax assets/(liabilities) at 30 September 2005 were:
2005 2004
£ million £ million
Long-term
Asset 156.9 153.6
Liability (370.8) (383.9)
Net liability (213.9) (230.3)
Short-term
Asset 26.8 19.1
Liability (42.2) (25.8)
Net (liability)/asset (15.4) (6.7)
Total deferred tax assets 183.7 172.7
Total deferred tax liabilities (413.0) (409.7)
(229.3) (237.0)
c) Factors affecting the current and total tax charge for the period
The table set out below provides a reconciliation between the UK corporation tax rate and the Group’s total tax rate, and between the UK corporation
tax rate and the effective tax rate on adjusted profit, computed by taking the various elements of the tax reconciliation as a percentage of the profit before
tax and the adjusted profit before tax.
Reconciliation of total tax rate Reconciliation of effective tax rate on adjusted profit
2005 2004 2003 2005 2004 2003
% % % % % %
UK corporation tax rate 30.0 30.0 30.0 30.0 30.0 30.0
Difference in tax rates of overseas subsidiaries,
joint ventures and associates 0.1 1.1 0.5 0.1 0.9 0.4
Excess of tax depreciation over book depreciation (0.6) (2.5) (3.3) (0.7) (2.1) (2.8)
Other timing differences – (0.9) 2.1 0.1 (0.7) 1.8
State and local taxes 0.4 0.2 0.3 0.4 0.2 0.3
Net (utilisation)/creation of losses (2.0) – 0.9 (2.4) – 0.7
Investment tax credits (0.3) – (0.1) (0.3) – (0.1)
Prior year tax (1.2) (3.0) (0.1) (1.4) (2.4) –
Tax effect of exceptional items (0.3) 3.6 4.4 – – –
Permanent items and other items with less than a 5% net effect 1.9 (0.8) (1.3) 2.2 (0.7) (1.1)
Current total tax rate/effective tax rate 28.0 27.7 33.4 28.0 25.2 29.2
Deferred tax timing differences (1.1) (3.0) (6.0) (2.0) 3.8 (0.2)
Total tax rate/effective tax rate 26.9 24.7 27.4 26.0 29.0 29.0
Profit on ordinary activities before tax, as shown in the consolidated profit and loss account, is analysed over its component parts as follows:
2005 2004 2003
£ million £ million £ million
UK 59.2 83.7 67.0
Overseas 534.4 328.6 284.9
593.6 412.3 351.9