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Financials
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Whistl Annual Report 2016
11 Tax on profit / (loss)
The tax charge / (credit) is based on the profit / (loss) for the year and represents;
2016
2015
£’000
£’000
Current tax
UK corporation tax on profit / (loss) at 20.00% (2015: 20.25%)
1,660
(2,903)
Adjustments in respect of prior years
2
(464)
Total current tax charge / (credit)
1,662
(3,367)
Deferred Tax
Origination and reversal of timing differences
212
(677)
Rate adjustment
(185)
469
Adjustments in respect of prior years
(52)
529
Total tax charge / (credit) on profit / (loss)
1,637
(3,046)
The tax credit (2015: credit) on the profit (2015: loss) for the year is lower (2015: lower) than the standard rate of
corporation tax in the UK of 20.00% (2015: 20.25%). The differences are explained below.
2016
2015
£’000
£’000
Profit / (loss) before taxation
8,954
(18,757)
Profit / (loss) for the year at 20.00% (2015: 20.25%)
1,791
(3,798)
Items not deductible for tax purposes
85
133
Rate changes
(185)
469
Accelerated capital allowances/timing differences
-
49
Other timing differences
-
36
Adjustments in respect of prior years
(54)
65
Total tax charge / (credit) for the year
1,637
(3,046)
A reduction in the UK Corporation tax rate from 21% to 20% (effective from 1 April 2015) was substantively enacted on 2
July 2013. Further reductions to 19% (effective 1 April 2017) and to 18% (effective 1 April 2020) were substantively enacted
on 26 October 2015, and an additional reduction to 17% (effective 1 April 2020) was substantively enacted on 6 September
2016. This will reduce the company’s future current tax charge accordingly. The deferred tax asset, at the balance sheet
date has been calculated based on these rates.
12 Profit and loss account of the parent company
As permitted by Section 408 of the Companies Act 2006, the profit and loss account of the parent company is not
presented as part of these financial statements. The parent company’s loss for the financial year was £188,000
(2015: loss £13,319,000).
The parent company’s loss for the financial year includes £nil (2015: £nil) of dividends received from subsidiary companies.
Notes to the consolidated financial statements for
the year ended 31 December 2016 (continued)