Taxation for the year comprises current and deferred ta., 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 tation assets and liabilities are not discounted.
Current tax
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantially enacted by the balance sheet date.
Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not revered at the balance sheet date.
Timing differences arise from the inclusion of income and expenditiure in tax assessments in periods different from those in which they are recognised in the financial statements. Deferrdc tax is measured using tax rates and laws that have been enacted o rsubstantially enacted by the year end 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 extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.