Notes to the consolidated financial statements for the year ended 31 December 2016 (continued)
11 Tax on profit / (loss) The tax charge / (credit) is based on the profit / (loss) for the year and represents;
2016
2015
£’000
£’000
Current tax UK corporation tax on profit / (loss) at 20.00% (2015: 20.25%)
1,660
(2,903)
2
Adjustments in respect of prior years Total current tax charge / (credit)
(464)
1,662
(3,367)
Deferred Tax Origination and reversal of timing differences
212
(677)
(185)
Rate adjustment
469 529
(52)
Adjustments in respect of prior years
Total tax charge / (credit) on profit / (loss)
1,637
(3,046)
The tax credit (2015: credit) on the profit (2015: loss) for the year is lower (2015: lower) than the standard rate of corporation tax in the UK of 20.00% (2015: 20.25%). The differences are explained below. 2016
2015
£’000
£’000
Profit / (loss) before taxation
8,954
(18,757)
1,791
Profit / (loss) for the year at 20.00% (2015: 20.25%)
(3,798)
85
Items not deductible for tax purposes
133
(185)
Rate changes
469
- -
Accelerated capital allowances/timing differences
49 36 65
Other timing differences
(54)
Adjustments in respect of prior years Total tax charge / (credit) for the year
1,637
(3,046)
A reduction in the UK Corporation tax rate from 21% to 20% (effective from 1 April 2015) was substantively enacted on 2 July 2013. Further reductions to 19% (effective 1 April 2017) and to 18% (effective 1 April 2020) were substantively enacted on 26 October 2015, and an additional reduction to 17% (effective 1 April 2020) was substantively enacted on 6 September 2016. This will reduce the company’s future current tax charge accordingly. The deferred tax asset, at the balance sheet date has been calculated based on these rates.
12 Profit and loss account of the parent company As permitted by Section 408 of the Companies Act 2006, the profit and loss account of the parent company is not presented as part of these financial statements. The parent company’s loss for the financial year was £188,000 (2015: loss £13,319,000).
The parent company’s loss for the financial year includes £nil (2015: £nil) of dividends received from subsidiary companies.
42
Financials | Whistl Annual Report 2016
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