| 5 Taxation | ||||||||
|---|---|---|---|---|---|---|---|---|
| UK | Overseas | Total | ||||||
| Current tax | 2004 £m |
2003 £m |
2004 £m |
2003 £m |
2004 £m |
2003 £m |
||
| Current tax charge for the period | 52 | 22 | 70 | 55 | 122 | 77 | ||
| Less double tax relief | (48) | (17) | — | — | (48) | (17) | ||
| 4 | 5 | 70 | 55 | 74 | 60 | |||
| Adjustments in respect of prior periods | 1 | (10) | — | (14) | 1 | (24) | ||
| Joint ventures | 3 | 4 | 3 | 4 | 6 | 8 | ||
| 8 | (1) | 73 | 45 | 81 | 44 | |||
| Deferred tax | ||||||||
| Deferred tax charge/(credit) for the period | 13 | (3) | 12 | (6) | 25 | (9) | ||
| Adjustments in respect of prior periods | (12) | 14 | 4 | 13 | (8) | 27 | ||
| Joint ventures | 3 | 2 | — | — | 3 | 2 | ||
| 12 | 12 | 89 | 52 | 101 | 64 | |||
Tax reconciliation |
||||||||
| Profit on ordinary activities before taxation | 306 | 180 | ||||||
| Nominal tax charge at UK corporation tax rate 30% (2003 30%) | 92 | 54 | ||||||
| UK R&D tax credit | (13) | (12) | ||||||
| Goodwill not deductible for tax purposes | 14 | 13 | ||||||
| Fixed asset timing differences | (12) | (4) | ||||||
| Other timing differences | (16) | 10 | ||||||
| Other items | 15 | 7 | ||||||
| Adjustments in respect of prior periods | 1 | (24) | ||||||
| 81 | 44 | |||||||
Analysis of taxation charge: |
||||||||
| Trading activities | 99 | 84 | ||||||
| Non underlying items (note 7) | 2 | (20) | ||||||
| 101 | 64 | |||||||