Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.
Current or deferred taxation assets and liabilities are not discounted.
Timing differences arise from the inclusion of income and expenes in tax in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using using tax rates and laws that have been enacted or substantively enacted by the balance sheets date and are expected to apply to the reversal of the timing difference.
Unrelieved tax losses and other deferred tax assets are recognised only to the exetent that it is probable that they will be recovered against the reversal of deferrred tax liabilities or other future profits.