Year ended 31 July 2006
15. Deferred tax assets and liabilities
The deferred tax assets and liabilities shown in the balance sheet are analysed as follows:
| Deferred tax | 2006
£m |
2005
£m |
|---|---|---|
| Deferred tax assets | 16 | 55 |
| Deferred tax liabilities | (88) | (62) |
| (72) | (7) | |
| Current | (67) | (40) |
| Non-current | (5) | 33 |
| (72) | (7) |
The following are the major deferred tax liabilities and assets recognised by the Group and movements thereon during the current and prior reporting period:
| Goodwill
and intangibles £m |
Share
based payment £m |
Properties
£m |
Retirement
benefit obligations £m |
Inventory
£m |
Other
£m |
Total
£m |
|
|---|---|---|---|---|---|---|---|
| At 1 August 2004 | (7) | 15 | (40) | 29 | (26) | 72 | 43 |
| Charge to income | (10) | 8 | 1 | 45 | (16) | (72) | (44) |
| Charge to equity | – | 4 | – | 2 | – | 3 | 9 |
| Acquisition of subsidiaries | (13) | – | – | – | – | 4 | (9) |
| Currency translation adjustment | – | (1) | – | (3) | – | (2) | (6) |
| At 31 July 2005 | (30) | 26 | (39) | 73 | (42) | 5 | (7) |
| Charge to income | 9 | (7) | (2) | (1) | (15) | 7 | (9) |
| Charge to equity | – | (6) | – | (3) | – | (2) | (11) |
| Acquisition of subsidiaries | (45) | – | (5) | 3 | – | (4) | (51) |
| Currency translation adjustment | 2 | – | – | (1) | 3 | 2 | 6 |
| At 31 July 2006 | (64) | 13 | (46) | 71 | (54) | 8 | (72) |
There are other potential deferred tax assets in relation to tax losses totalling £43 million (2005: £13 million) that have not been recognised on the basis that their future economic benefit is uncertain. All of these losses may be carried forward indefinitely.
No deferred tax liability has been recognised in respect of a further £459 million (2005: £406 million) of unremitted earnings of subsidiaries because the Group is in a position to control the timing of reversal of the associated temporary deferred tax differences and it is probable that such differences will not reverse in the foreseeable future.
