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Notes to the Company accounts
6. Provisions for liabilities and charges
| Deferred taxation £m |
|
|---|---|
| At 31 March 2005 | – |
| First time adoption of FRS 26 | 19 |
| At 1 April 2005 | 19 |
| Credited to equity | (14) |
| At 31 March 2006 | 5 |
| At 1 April 2006 | 5 |
| Charged to equity | 4 |
| Credited to the profit and loss account (i) | (12) |
| Transferred to debtors (note 3) (ii) | 3 |
| At 31 March 2007 | - |
(i) Included is a deferred tax credit of £13m in respect of prior years (2006: £nil).
(ii) Included is a current deferred tax asset of £1m (2006: £nil).
Factors that may affect future deferred tax charges
The UK rate of corporation tax is expected to decrease from the current rate of 30% to 28% in 2008/2009. We are in the process of evaluating the impact this tax rate will have on our future deferred tax charge.