Page 57 - RFU Annual Report 2015/2016

Financial Statements
55

Restated
(c) Factors affecting tax charge 2016 2015
£m £m

Profit/(loss) on ordinary activities before tax 11.7 (1.1)

Profit/(loss) on ordinary activities multiplied by standard rate
of corporation tax in the UK of 20.00% (2015 - 20.75%) 2.3 (0.2)

Effects of:

Expenses not deductible for tax purposes 1.5 3.4
Non-taxable income (1.3) (2.2)
Tax rate changes 0.4 -
Adjustment from previous periods 0.1 (0.1)

Corporation tax on ordinary activities 3.0 0.9

(d) Factors that may affect future tax charges

Finance (No.2) Act 2015, which was substantively enacted on 26 October 2015, provides a reduction in the main rate of
corporation tax from 20% to 19%, effective from 1 April 2017, and to 18%, from 1 April 2020. Finance Act 2016, which was
substantively enacted on 6 September 2016, provides a further reduction to the main rate of corporation tax to 17% from
1 April 2020. As the further reduction to 17% was substantively enacted after the balance sheet date of 30 June 2016, the
deferred tax balances at this date have been measured at 18%.
(e) Deferred tax 2016
£m
Group
At 1 July 2015 6.4
Adjustment in respect of prior years (0.1)
Deferred tax charge to Profit and Loss account for the year (1.7)
Deferred tax charge to Other Comprehensive Income for the year 0.3
At 30 June 2016 4.9

Parent
At 1 July 2015 5.8
Adjustment in respect of prior years (0.1)
Deferred tax charge to Profit and Loss account for the year (1.6)
Deferred tax charge to Other Comprehensive Income for the year 0.3
At 30 June 2016 4.4

Restated Restated
Group Group Parent Parent
2016 2015 2016 2015
£m £m £m £m
Deferred tax comprises:
Fixed asset timing differences 2.5 4.3 1.9 3.8
Short term timing differences 2.4 2.1 2.5 2.0

4.9 6.4 4.4 5.8

Annual Report 2015/16