6 Taxation - Notes to the financial statements - Rolls-Royce Annual Report 2006

		UK		Overseas		Total
		2006 £m	2005 £m	2006 £m	2005 £m	2006 £m	2005 £m
Current tax
Current tax charge for the year		51	25	66	63	117	88
Less double tax relief		(47)	(25)	—	—	(47)	(25)
		4	—	66	63	70	63
Adjustments in respect of prior years		(2)	(3)	(6)	(4)	(8)	(7)
		2	(3)	60	59	62	56
Deferred tax
Deferred tax charge/(credit) for the year		296	61	33	(2)	329	59
Adjustments in respect of prior years		1	3	5	12	6	15
		297	64	38	10	335	74
Recognised in the income statement		299	61	98	69	397	130
Other tax charges/(credits)
Recognised in the statement of recognised income and expense	– current tax					—	—
	– deferred tax					91	(222)
Recognised directly in equity	– current tax					(18)	—
	– deferred tax					(58)	(24)
Deferred taxation balances are analysed in note 21.
Tax reconciliation
Profit before taxation						1,391	477
Less share of profits of joint ventures (note 11)						(47)	(46)
Profit before taxation excluding joint ventures						1,344	431
Nominal tax charge at UK corporation tax rate 30% (2005 30%)						403	129
UK R&D credit						(19)	(18)
Other items						15	11
Adjustments in respect of prior years						(2)	8
						397	130
Analysis of taxation charge:
Underlying items						190	170
Non-underlying items						207	(40)
						397	130

© Rolls-Royce plc 2007