6 Taxation - Notes to financial statements - Rolls-Royce Annual Report 2005

Current tax
	UK		Overseas		Total
	2005 £m	2004 £m	2005 £m	2004 £m	2005 £m	2004 £m
Current tax charge for the period	25	52	63	70	88	122
Less double tax relief	(25)	(48)	—	—	(25)	(48)
	—	4	63	70	63	74
Adjustments in respect of prior periods	(3)	1	(4)	—	(7)	1
	(3)	5	59	70	56	75
Deferred tax
Deferred tax charge/(credit) for the period	61	17	(2)	16	59	33
Adjustments in respect of prior periods	3	(12)	12	4	15	(8)
	61	10	69	90	130	100

Deferred taxation balances are analysed in note 21.

Tax reconciliation
Profit before taxation	477	364
Less share of profits of joint ventures (note 11)	(46)	(19)
Profit before taxation excluding joint ventures	431	345
Nominal tax charge at UK corporation tax rate 30% (2004 30%)	129	103
UK R&D tax credit	(18)	(13)
Other items	11	17
Adjustments in respect of prior periods	8	(7)
	130	100
Analysis of taxation charge:
Trading activities	167	100
Non-underlying items	(37)	—
	130	100

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