Jockey Club Racecourses Limited Notes to the financial statements Year ended 31 December 2021
11.
Tax charge on profit on ordinary activities (continued) b) Factors affecting tax charge for the year The tax assessed for the year is lower than (2020: lower than) the standard rate of corporation tax in the year. The differences are explained below: 2021 £m 2020 £m
Profit on ordinary activities before taxation
23.2
15.0
4.4
2.9
Profit on ordinary activities multiplied by standard rate of corporation tax in the UK
19.00% (2020: 19.00%) Effects of Expenses not deductible for tax purposes
1.6
1.8
Income not taxable Group relief claimed
(1.6) (0.1)
(1.6) (0.1) (0.2)
Short-term timing differences
Adjustments in respect of previous years
(0.1) (0.1) (0.5)
Transfer pricing adjustments
(0.1) (2.3)
Adjustment in respect of change of rate of corporation tax
Deferred tax not recognised
0.3
Total tax charge for the year
2.1
2.2
Factors affecting future tax charge The substantively enacted tax rate remained at 19% as at the Balance Sheet date of 31 December 2021. It was announced on 3 March 2021 that the main rate of corporation tax would increase from 19% to 25% from 1 April 2023. For profits up to £50,000, the corporation tax rate will remain at 19% and for profits over £250,000, the corporation tax rate will be 25%. Marginal relief provisions will also be introduced for profits between the lower and upper limits. The Government included the above changes in the Finance Bill 2021 that had its third reading on 24 May 2021 and is now considered substantively enacted. The newly enacted rates are applicable for calculation of deferred tax balances to the extent that these are the rates expected at the time of reversal of the relevant deferred tax assets and liabilities.
3796 370
151
NT1/107
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