|Recognised in the income statement||2013|
|Current UK tax expense:|
|Double taxation relief||–||–|
|Current tax on foreign income for the year||1,192||1,030|
|Adjustments for prior years||114||(60)|
|Total current tax||1,311||970|
|Deferred tax expense (note 15)|
|Origination and reversal of temporary differences||434||705|
|Adjustments for prior years||(11)||(78)|
|Tax in income statement||1,734||1,597|
|Tax recognised directly in equity||2013|
|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 expense||2013|
|Profit for the period||4,708||3,162|
|Tax from continuing operations||1,734||1,597|
|Profit before tax||6,442||4,759|
|Tax using the UK corporation tax rate of 24% (2012: 26%)||1,546||24||1,237||26|
|Tax suffered on dividends||174||3||102||2|
|IFRS2 share option (credit)/charge||(10)||–||4||–|
|Deferred tax assets not recognised||(184)||(3)||287||6|
|Different tax rates on overseas earnings||(171)||(3)||(265)||(6)|
|Adjustments in respect of prior years||103||2||(138)||(3)|
|Tax rate change||45||–||63||2|
|Total tax in income statement||1,734||27||1,597||34|
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.