17 DEFERRED TAX
The following are the deferred tax liabilities and assets and movements thereon recognised by the Group during the current and previous financial year. Deferred tax is calculated on the temporary differences under the liability method using a tax rate of 28 per cent (2006: 30 per cent).
| 2007 £’000 |
2006 £’000 |
|
| At 1st January | 6,018 | 6,047 |
| Charge/(credit) for the year in the income statement | 184 | (1,021) |
| Debited directly to equity | 498 | 992 |
| At 31st December | 6,700 | 6,018 |
| 2007 £’000 |
2006 £’000 |
|
| Tax on items charged/(credited) to equity: | ||
| Deferred tax charge/(credit) in respect of share-based payments | 18 | (240) |
| Deferred tax charge on property revaluations | – | 1,232 |
| Deferred tax charge on other revaluations | 480 | – |
| 498 | 992 |
| Revaluation of property £’000 |
Total £’000 |
|
| Deferred tax liabilities recognised: At 1st January 2007 |
12,233 | 12,233 |
| Credited to the income statement | (536) | (536) |
| At 31st December 2007 | 11,697 | 11,697 |
| Decelerated capital allowances £’000 |
Provisions £’000 |
Tax losses £’000 |
Other £’000 |
Total £’000 |
|
| Deferred tax assets recognised: At 1st January 2007 |
(596) | (54) | (5,312) | (253) | (6,215) |
| (Credited)/charged to income statement | (87) | (198) | 777 | 228 | 720 |
| Debited directly to equity | – | – | 480 | 18 | 498 |
| At 31st December 2007 | (683) | (252) | (4,055) | (7) | (4,997) |
| 2007 £’000 |
|
| Net deferred tax liability: At 31st December 2007 |
6,700 |
Deferred tax assets and liabilities are only offset where there is a legally enforceable right of offset and there is an intention to settle the balances net. Deferred tax assets arising from the Group’s trading and capital losses are recognised on the basis that there will be sufficient profits in the forseeable future to utilise such losses.
Movements in deferred tax assets and liabilities (prior to the offsetting of balances) are shown above.
