Notes to the consolidated financial statements For the year ended 30 June 2024
9. Taxation continued
The higher effective tax rate on underlying and statutory profit has been contributed by the goodwill impairment not deductible for tax purposes, the increased Corporation Tax rate in the current year and under provision from prior period tax charges.
Underlying profit adjustments £’000
Underlying profit £’000
Statutory profit £’000
Year ended 30 June 2023 Profit/(loss) before taxation
30,327
(8,088)
22,239
Profit/(loss) multiplied by the standard rate of tax in the UK of 20.5%
6,217
(1,658)
4,559
Tax effect of amounts that are not deductible/(taxable) in calculating taxable income: – Depreciation and amortisation
604 (124)
(285)
319
– Non-taxable income
– – –
(124)
– Overseas tax losses not available for UK tax purposes
67
67
– Lower tax rates in other jurisdictions in which the Group operates
(107)
(107)
– Disallowable expenses – Share-based payments
263
48
311
(512) (423)
– –
(512) (423)
– Over provision in prior years Income tax expense/(credit)
5,985
(1,895)
4,090
Effective tax rate
19.7%
n/a
18.4%
The standard rate of Corporation Tax in the UK was 25.0% with effect from 1 April 2023. Accordingly, the Company’s profits for this accounting year are taxed at a rate of 25.0% (FY23: 20.5%). The relevant deferred tax balances have been remeasured at this increased rate from the prior year. Deferred tax assets and liabilities are calculated at the rate that is expected to be in force when the temporary differences unwind, however, limited to the extent that such rates have been substantively enacted.
The deferred tax charges for the year arise from:
2024 £’000
2023 £’000
(503)
Share-based payments
(1)
71
Accelerated capital allowances
(27) (117) (54)
(152)
Accelerated capital allowances on research and development
7
Dilapidations
(1,427)
Amortisation of acquired client relationship contracts
(934)
216 214
Trading losses carried forward Under provision in prior years
(56)
410
Deferred tax charge
(1,574)
(779)
128 Brooks Macdonald Group plc Annual Report and Accounts 2024
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