(1.3MB)9. Taxation
The tax charge for the period is lower than the standard UK rate of corporation tax as explained below:
|
|
2006 |
2005 |
|---|---|---|
|
Profit on ordinary activities before taxation |
71.5 |
40.8 |
|
Profit assessed at UK corporation tax rate 30% (2005: 30%) |
21.4 |
12.2 |
|
Expenses not allowed for tax purposes (primarily goodwill amortisation) |
8.9 |
6.1 |
|
Effect of lower tax rates on overseas earnings net of losses |
(28.3) |
(17.4) |
|
Current tax charge for the period – overseas taxation |
2.0 |
0.9 |
There are taxation losses available to the Group. Utilisation of these losses is contingent upon agreement with the relevant revenue authorities.