| Taxation |
10. Taxation
Tax credit
| |
|
Year ended
December 31 |
|
|
Year ended
December 31 |
|
|
Year ended
December 31 |
|
| |
|
2021
£’000 |
|
|
2020
£’000 |
|
|
2019
£’000 |
|
| |
|
|
|
|
|
|
|
|
|
| Current tax: |
|
|
|
|
|
|
|
|
|
| Adjustment in respect of prior years |
|
|
190 |
|
|
|
- |
|
|
|
- |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Deferred tax: |
|
|
|
|
|
|
|
|
|
|
|
|
| Origination and reversal of timing differences |
|
|
(7,409 |
) |
|
|
(969 |
) |
|
|
- |
|
| Adjustment in respect of prior years |
|
|
191 |
|
|
|
- |
|
|
|
- |
|
| Effect of tax rate change on opening balance |
|
|
1,324 |
|
|
|
- |
|
|
|
- |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Tax credit |
|
|
(5,704 |
) |
|
|
(969 |
) |
|
|
- |
|
The tax credit for the year can be reconciled
to the statement of profit and loss as follows:
| |
|
Year ended
December 31 |
|
|
Year ended
December 31 |
|
|
Year ended
December 31 |
|
| |
|
2021
£’000 |
|
|
2020
£’000 |
|
|
2019
£’000 |
|
| |
|
|
|
|
|
|
|
|
|
| Loss before tax from continuing operations |
|
|
(549,213 |
) |
|
|
(99,847 |
) |
|
|
(17,964 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Current corporation tax rate of 19% |
|
|
(104,350 |
) |
|
|
(18,971 |
) |
|
|
(3,413 |
) |
| Impact of difference in overseas tax rates |
|
|
(3,146 |
) |
|
|
- |
|
|
|
- |
|
| Expenses not deductible for tax purposes |
|
|
55,356 |
|
|
|
1,238 |
|
|
|
64 |
|
| Adjustment in respect of previous periods |
|
|
381 |
|
|
|
- |
|
|
|
- |
|
| Impact of rate change |
|
|
1,402 |
|
|
|
- |
|
|
|
- |
|
| Deferred tax asset not recognized |
|
|
69,563 |
|
|
|
17,733 |
|
|
|
3,349 |
|
| Utilization of deferred tax previously unrecognized |
|
|
(23,862 |
) |
|
|
- |
|
|
|
- |
|
| Difference between corporation tax and deferred tax rate |
|
|
(423 |
) |
|
|
- |
|
|
|
- |
|
| Benefit of tax incentives |
|
|
(625 |
) |
|
|
- |
|
|
|
- |
|
| Research and development claim – prior year |
|
|
- |
|
|
|
(969 |
) |
|
|
- |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Tax credit |
|
|
(5,704 |
) |
|
|
(969 |
) |
|
|
- |
|
The tax credit for the year can be reconciled
to the statement of profit and loss as per the above. The credit is lower than the current corporation tax rate of 19% largely due to
the IFRS 2 expense on the Transaction which has been treated as non-deductible expenditure and the net deferred tax liability identified
on fixed asset additions.
The tax credit is calculated on the basis of the tax laws enacted or
substantively enacted at the balance sheet date in the countries where the Group operates and generates taxable income. Deferred taxation
is determined using tax rates that are substantively enacted at the balance sheet date and are expected to apply when the asset is realized.
Deferred tax assets are recognized to the extent it is probable that they will be recoverable against future taxable profits.
Deferred tax
| |
|
£’000 |
|
| |
|
|
|
| Deferred tax assets |
|
|
|
|
| Share-based payments |
|
|
10,822 |
|
| IFRS conversion |
|
|
67 |
|
| Short-term timing differences |
|
|
119 |
|
| Losses |
|
|
2,081 |
|
| Total deferred tax assets recognized |
|
|
13,089 |
|
| |
|
|
|
|
| Deferred tax liabilities |
|
|
|
|
| Fixed asset temporary differences |
|
|
(5,280 |
) |
| Intangible asset differences |
|
|
(6,632 |
) |
| IFRS conversion / capital gains |
|
|
(1,263 |
) |
| Total deferred tax liabilities |
|
|
(13,175 |
) |
| |
|
|
|
|
| Deferred tax liabilities, net |
|
|
(86 |
) |
Reconciliation of deferred tax liabilities, net
| |
|
£’000 |
|
|
| |
|
|
|
|
| At January 1, 2021 |
|
|
- |
|
|
| |
|
|
|
|
|
| Income tax recognized in the income statement |
|
|
6,084 |
|
|
| Prior year adjustments |
|
|
(191 |
) |
|
| Business combinations |
|
|
(13,404 |
) |
|
| Equity |
|
|
7,425 |
|
|
| |
|
|
|
|
|
| At December 31, 2021 |
|
|
(86 |
) |
|
| |
|
|
|
|
|
| At December 31, 2020 |
|
|
- |
|
|
| At December 31, 2019 |
|
|
- |
|
|
The Group has unutilized tax losses of £488.3
million (2020: £123.5 million, 2019: £18.5 million) which are available against future taxable profits for an indefinite
period.
|