Notes to the consolidated financial statements (continued) 118 John Lewis Partnership plc Annual Report and Accounts 2016


2 Partnership performance (continued) 2.7 Taxation (continued)


2.7.3 Deferred tax (continued) 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 25 January 2014


Credited to income statement At 31 January 2015


Credited/(charged) to income statement At 30 January 2016


depreciation £m


(125.3) 2.9


(122.4) 12.8


(109.6)


Capital gains tax on land


Deferred tax assets At 25 January 2014


(Charged)/credited to income statement


Credited/(charged) to other comprehensive income At 31 January 2015


(Charged)/credited to income statement Charged to other comprehensive income At 30 January 2016


and buildings £m


7.2


(0.4) –


6.8


(0.3) –


6.5


Revaluation of land and buildings £m


(3.8) 1.0


(2.8) 0.5


(2.3)


Pensions and


provisions £m


208.2 11.1


38.3


257.6 15.1


(94.6) 178.1


Rollover gains


£m


(17.2) 1.0


(16.2) (24.1) (40.3)


Other £m


– 1.4


(0.6) 0.8 1.8


(1.4) 1.2


Total £m


(146.3) 4.9


(141.4) (10.8)


(152.2)


Total £m


215.4 12.1 37.7


265.2 16.6


(96.0) 185.8


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 30 January 2016 (2015: £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 6.1).


All of the deferred tax assets were available for offset against deferred tax liabilities and hence the net deferred tax asset at 30 January 2016 was £33.6m (2015: £123.8m asset). The net deferred tax asset is recoverable after more than one year.


2.7.4 Factors affecting tax charges in current and future years


Here we explain any changes to the current or future tax rates that have been announced or substantively enacted. It also explains the impact on the Partnership of any rate changes that are already effective.


The Finance Act 2015 reduced the main rate of corporation tax from 21% to 20% from 1 April 2015. Further reductions to reduce the main rate of corporation tax to 19% from 1 April 2017 and to 18% from 1 April 2020 have also been enacted.


The effect of the 1% rate change from 1 April 2017 and a further 1% rate change from 1 April 2020 was to decrease the deferred tax asset by £14.9m, with a £20.5m charge being taken to other comprehensive income and a £5.6m tax credit to the income statement.


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