Page 63 - RFU Annual Report 2017
P. 63

61
                                                     Financial Statements






             (d) Factors affecting tax charge                                                    2017       2016
                                                                                                   £m        £m

             (Loss)/profit for the year - continuing operations                                   (5.5)      11.7

             Tax on (loss)/profit at standard UK rate of 19.75% (2016: 20%)                       (1.1)       2.3

             Effects of:
             Expenses not deductible for tax purposes                                              1.5        1.5
             Income not taxable                                                                   (2.7)      (1.3)
             Capital gains charge                                                                  0.1         -
             Adjustment from previous years                                                          -        0.4
             Tax rate changes                                                                      0.7        0.1
             Tax (credit)/charge for the period                                                   (1.5)       3.0




             (e) Factors that may affect future tax charges


             Under the Finance Act 2015, the main rate of corporation tax reduced from 20% to 19% effective from 1 April 2017. The Act
             included a further reduction to 18%, with effect from 1 April 2020. The Finance Act 2016, which was substantively enacted
             on 6 September 2016, provided 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 before the Balance Sheet date of 30 June 2017, the deferred tax balances
             at this date have been measured at 17%, the rate at which the deferred tax asset is expected to reverse.
             (f) Deferred tax asset                                                                         2017
                                                                                                             £m
             Group
             At 1 July 2016                                                                                  4.9
             Adjustment in respect of previous years                                                         (0.1)
             Deferred tax credit to Profit and Loss account for the year                                     2.6
             Deferred tax charge in Other Comprehensive Income for the year                                 (0.4)
             At 30 June 2017                                                                                 7.0

             Parent
             At 1 July 2016                                                                                  4.4
             Adjustment in respect of previous years                                                         (0.1)
             Deferred tax credit to Profit and Loss account for the year                                     2.5
             Deferred tax charge in Other Comprehensive Income for the year                                 (0.4)
             At 30 June 2017                                                                                 6.4




                                                                         Group      Group      Parent      Parent
                                                                          2017       2016       2017        2016
                                                                            £m         £m         £m         £m
             The deferred tax asset comprises:
             Fixed asset timing differences                                 3.4        2.5        2.8         1.9
             Short term timing differences                                  3.6        2.4        3.6         2.5

                                                                            7.0        4.9        6.4         4.4







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