Recognised in the income statement2013
£000
2012
£000
Current UK tax expense:
Current year5
Double taxation relief
5
Current tax on foreign income for the year1,1921,030
Adjustments for prior years114(60)
1,306970
Total current tax1,311970
Deferred tax expense (note 15)
Origination and reversal of temporary differences434705
Adjustments for prior years(11)(78)
423627
Tax in income statement1,7341,597
Tax recognised directly in equity2013
£000
2012
£000
Current tax recognised directly in equity(69)
Deferred tax recognised in equity(160)(103)
Total tax recognised in equity(229)(103)
Reconciliation of effective tax rate ('ETR') and tax expense2013
£000
ETR
%
2012
£000
ETR
%
Profit for the period4,7083,162
Tax from continuing operations1,7341,597
Profit before tax6,4424,759
Tax using the UK corporation tax rate of 24% (2012: 26%)1,546241,23726
Tax suffered on dividends17431022
Non-deductible expenses23143077
IFRS2 share option (credit)/charge(10)4
Deferred tax assets not recognised(184)(3)2876
Different tax rates on overseas earnings(171)(3)(265)(6)
Adjustments in respect of prior years1032(138)(3)
Tax rate change45632
Total tax in income statement1,734271,59734

The UK current tax expense was low during the period as the UK was able to utilise the remaining UK tax losses that it suffered during the previous years.

On 21 March 2012, the Chancellor announced a reduction in the main rate of UK corporation tax to 24%, with effect from 1 April 2012. On 3 July 2012, a further reduction in the UK corporation tax rate from 24% to 23%, with effect from 1 April 2013, became substantively enacted. The effect of the rate reduction on the deferred tax balances as at 31 March 2013 has been included in the figures above.

On 20 March 2013, the Chancellor announced proposed changes to further reduce the main rate of corporation tax to 20% by 1 April 2015. The corporation tax rate reductions to 21% and 20% have not yet been substantively enacted and therefore are not included in the figures above.

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 accordingly.