For the period
| 52 weeks to
29 March 2013
£m | 52 weeks to
30 March 2012
£m |
|---|
| Current taxation | | |
| UK corporation tax charge for the period | 21.5 | 26.7 |
| Adjustment in respect of prior periods | (1.8) | (0.8) |
| 19.7 | 25.9 |
| Deferred taxation | | |
| Origination and reversal of timing differences | (1.8) | (0.7) |
| Adjustment in respect of prior periods | 0.4 | 0.5 |
| (1.4) | (0.2) |
| Total tax charge for the period | 18.3 | 25.7 |
The tax charge is reconciled with the standard rate of UK corporation tax as follows:
For the period
| 52 weeks to
29 March 2013
£m | 52 weeks to
30 March 2012
£m |
|---|
| Profit before tax | 71.0 | 94.1 |
| UK corporation tax at standard rate of 24% (2012: 26%) | 17.1 | 24.5 |
| Factors affecting the charge for the period: | | |
| Depreciation on expenditure not eligible for tax relief | 1.2 | 1.7 |
| Employee share options | (0.2) | 0.5 |
| Non-taxable income | — | (1.3) |
| Other disallowable expenses | 1.9 | 0.5 |
| Adjustment in respect of prior periods | (1.4) | (0.3) |
| Impact of overseas tax rates | (0.4) | — |
| Impact of change in tax rate on deferred tax balance | 0.1 | 0.1 |
| Total tax charge for the period | 18.3 | 25.7 |
A reduction in the UK corporation tax rate from 26% to 25% (effective from 1 April 2012) was substantively enacted on 5 July 2011, and further reductions to 24% (effective from 1 April 2012) and 23% (effective from 1 April 2013) were substantively enacted on 26 March 2012 and 3 July 2012 respectively. This will reduce the Company's future current tax charge accordingly. The deferred tax asset at 29 March 2013 has been calculated based on the rate of 23% substantively enacted at the balance sheet date.
The March 2013 Budget announced that the rate will further reduce to 20% by 2015 in addition to the planned reduction to 21% by 2014 previously announced in the December 2012 Autumn Statement. It has not yet been possible to quantify the full anticipated effect of the announced further 3% rate reduction, although this will further reduce the Company's future current tax charge and reduce the Company's deferred tax asset accordingly.
In this financial period, the UK corporation tax standard rate was 24% (2012: 26%).
The effective tax rate of 25.7% (2012: 27.3%) differs from the UK corporation tax rate principally due to the non-deductibility of depreciation charged on capital expenditure and other permanent differences arising in the period.
The tax charge of £18.3m (2012: £25.7m) includes a charge of £0.1m (2012: £0.9m) in respect of tax on non-recurring items, as detailed in note 5.
An Income tax charge of £0.7m (2012: £0.3m) on other comprehensive income relates to the fair value of forward currency contracts outstanding at the year end. No other items within other comprehensive income have a tax impact.
The Group engages openly and proactively with tax authorities both in the UK and internationally where the Group trades and sources products. The Group's Tax Policy is reviewed annually by the Board and is shared with HM Revenue & Customs (''HMRC''). The Group is fully committed to complying with all of its tax payment and reporting obligations throughout the business.
In FY13 the contribution to the UK Exchequer from both taxes paid and collected exceeded £147.2m with the main taxes including corporation tax £16.9m, net VAT £61.8m, PAYE £16.3m, Employees National Insurance Contributions £7.9m, Employers National Insurance Contributions £10.1m and Business Rates £34.2m.