Ulster Rugby Annual Report 2015 - 2016

NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 30 APRIL 2016

3. TAX ON PROFIT ON ORDINARY ACTIVITIES The tax charge comprises:

2016

2015

£

£

CURRENT TAX ON PROFIT ON ORDINARY ACTIYITES: UK corporation tax on the profit in the current year

39 39

61,812

105,650

Adjustments in respect of prior periods

(90,822)

—

Total current tax

(29,010)

105,650

DEFERRED TAXATION Origination and reversal of timing differences

5,194

49,983 (2,197)

Effect of rate changes

(12,336)

Adjustments in respect of prior periods

6,598

—

(544)

47,786

Total tax (credit)/charge on surplus on ordinary activities

(29,554)

153,436

The Finance Act 2015 has provided that from 1 April 2017 taxable profits will be taxed at the rate of 19% and from 1 April 2020 will be taxed at 18%. The above rate changes will rednce the future tax liabilities of the Branch. Proposed in the Finance Bill 2016 but not yet enacted is a fm1her reduction in the tax rate to 17% from 1 April 2020. The impact of this proposal would be a fmiher reduction in the deferred tax balance of approximately £6,000.

Profit for the year before tax

70,711

208,442

Profit at standard rate of corporation tax of 20% (2015: 20.92%)

14,142

43,607

Effects of: Expenses, net of income, not deductible

52,864 (12,336) (84,224) (29,554)

112,027 (2,197)

Impact of rate changes

Adjustments in respect of prior periods Total tax (credit)/charge for year

—

153,436

DEFERRED TAXATION Accelerated capital allowances Deferred tax liability at 1 May

111,036 111,580

111,580 63,794 47,786 111,580

Deferred tax charge

(544)

Deferred tax liability at 30 April at 18%

111,036