John Lewis Partnership plc Annual Report and Accounts 2014


95


8 Taxation (continued) The movement on the deferred tax account is shown below:


2014 £m


Opening asset/(liability) Credited to income statement


Credited to other comprehensive income Closing asset


25.6 37.6 5.9


69.1 2013


(restated) £m


(32.1) 44.4 13.3 25.6


The movements in deferred tax assets and liabilities during the year (prior to the offsetting of balances within the same jurisdiction, as permitted by IAS 12) are shown below.


Deferred tax assets and liabilities are only offset where there is a legally enforceable right of offset and there is an intention to settle the balances net.


Accelerated tax


Deferred tax liabilities At 28 January 2012


Credited to income statement At 26 January 2013


Credited to income statement At 25 January 2014


depreciation £m


(166.0) 18.8


(147.2) 21.9


(125.3)


Revaluation of land and buildings £m


(5.7) 1.0


(4.7) 0.9


(3.8)


Rollover gains


£m


(22.5) 2.6


(19.9) 2.7


(17.2)


Deferred tax assets At 28 January 2012


Credited to income statement


Credited to other comprehensive income At 26 January 2013


Credited to income statement


Credited to other comprehensive income At 25 January 2014


Capital gains tax on land and buildings £m


Other £m


(3.6) 1.4


(2.2) 2.2 –


Pensions


and provisions (restated) £m


19.8 13.3


Total £m


(197.8) 23.8


(174.0) 27.7


(146.3) Total


(restated) £m


6.5 159.2 165.7 0.8 –


20.6 13.3


(0.1) –


7.3 192.3 199.6 10.0 5.9


9.9 5.9


7.2 208.2 215.4


Deferred tax assets are recognised for tax losses carried forward to the extent that the realisation of the related tax benefit through future profits is probable. There were no unrecognised deferred tax assets in respect of losses for the year ended 25 January 2014 (2013: £nil).


The deferred tax balance associated with the pension deficit has been adjusted to reflect the current tax benefit obtained in the financial year ended 30 January 2010 following the contribution of the limited partnership interest in JLP Scottish Limited Partnership to the pension scheme (see note 22).


All of the deferred tax assets were available for offset against deferred tax liabilities and hence the net deferred tax asset at 25 January 2014 was £69.1m (2013: £25.6m asset). The net deferred tax asset is recoverable after more than one year.


8.4 Factors affecting tax charges in current and future years


The Finance Act 2013 reduced the main rate of corporation tax from 23% to 21% from 1 April 2014. Further reductions to reduce the main rate of corporation tax to 20% from 1 April 2015 have also been enacted.


The effect of the 3% rate change on the current year (2013: 2% rate change) was to decrease the deferred tax asset by £6.5m (2013: £0.5m decrease) with a £21.1m charge (2013 restated: £13.2m charge) being taken to other comprehensive income and a £14.6m tax credit (2013 restated: £12.7m credit) to the income statement.


THE JOHN LEWIS PARTNERSHIP


OUR PERFORMANCE


GOVERNANCE


FINANCIAL STATEMENTS


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