Income tax expense represents the sum of the tax currently payable.
The tax currently payable is based on the unearned Income for the year. This represents Interest earned on deposit account and is Taxable in the accounting year it is received. Service Charges and any other Income is exempt from current Corporation Tax
under the Landlord & Tenant Act.
Current or deferred tax for the year is recognised in profit or loss, except when they related to items that are recognised in other comprehensive income or directly in equity, in which case, the current and deferred tax is also recognised in other comprehensive income or directly in equity respectively.