41061 Unite AR22 HI-RES WEB-READY - Flipbook - Page 201
STRATEGIC REPORT
GOVERNANCE
FINANCIAL STATEMENTS
199
OTHER INFORMATION
2.5c) Tax – statement of changes in equity
Within the statement of changes in equity a tax charge totalling £0.2 million (2021: £0.6 million credit) has been recognised
representing deferred tax. An analysis of this is included below in the deferred tax movement table.
2.5d) Tax – balance sheet
The table below outlines the deferred tax (assets)/liabilities that are recognised in the balance sheet, together with their
movements in the year:
2022
Investments
At 31
December
2021
£m
Charged/
(credited)
in income
£m
Charged/
(credited)
in equity
£m
At 31
December
2022
£m
–
0.4
–
0.4
Property, plant and machinery and provisions
(1.2)
(0.1)
–
(1.3)
Share schemes
(1.8)
0.3
0.3
(1.2)
0.3
(0.3)
Tax value of carried forward losses recognised
Net tax assets
*
–
(3.0)
0.9*
–
–
(2.1)
The £0.9 million balance above includes tax movements totalling £0.2 million in respect of property, plant and machinery, share
schemes and losses which are included in EPRA earnings and therefore not shown as a reconciling item in the IFRS reconciliation in note
2.2b. Removing them results in the £0.7 million movement shown in note 2.2b.
2021
Investments
At 31
December
2020
£m
Charged/
(credited)
in income
£m
Charged/
(credited)
in equity
£m
At 31
December
2021
£m
–
–
–
–
Property, plant and machinery and provisions
(0.6)
(0.6)
–
(1.2)
Share schemes
(1.3)
(0.2)
(0.3)
(1.8)
Tax value of carried forward losses recognised
Net tax assets
*
–
(1.9)
0.3
(0.3)
(0.5)*
(0.6)
–
(3.0)
The £0.5 million balance above includes tax movements totalling £0.2 million in respect of property, plant and machinery, share
schemes and losses which are included in EPRA earnings and therefore not shown as a reconciling item in the IFRS reconciliation in note
2.2b. Removing them results in the £0.3 million movement shown in note 2.2b.
The deferred tax asset at 31 December 2022 has been calculated based on the rate at which it is expected to reverse.
On 24 May 2021, Finance Act 2021 was substantively enacted which contains provisions to increase the corporation
tax rate to 25% from 1 April 2023. This rate change increases the deferred tax assets recognised at the year-end by
£0.2 million.
As a REIT, disposals of investment property and property rich investments are exempt from tax and as a result no
deferred tax liability has been recognised in relation to these assets.
Company
Deferred tax has not been recognised on temporary differences of £1.7 million (2021: £3.1 million) in respect of revaluation
of subsidiaries and investment in joint ventures as it is considered unlikely that these investments will be divested.
