| Taxation |
11. Taxation
Tax credit
| |
|
Year ended
December 31 |
|
|
Year ended
December 31 |
|
|
Year ended
December 31 |
|
| |
|
2022
£’000 |
|
|
2021
£’000 |
|
|
2020
£’000 |
|
| |
|
|
|
|
|
|
|
|
|
| Current tax: |
|
|
|
|
|
|
|
|
|
| Adjustment in respect of prior years |
|
|
- |
|
|
|
190 |
|
|
|
- |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Deferred tax: |
|
|
|
|
|
|
|
|
|
|
|
|
| Origination and reversal of timing differences |
|
|
(5,997 |
) |
|
|
(3,867 |
) |
|
|
(969 |
) |
| Adjustment in respect of prior years |
|
|
- |
|
|
|
191 |
|
|
|
- |
|
| Effect of tax rate change on opening balance |
|
|
(1,355 |
) |
|
|
1,324 |
|
|
|
- |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Tax credit |
|
|
(7,352 |
) |
|
|
(2,162 |
) |
|
|
(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 |
|
| |
|
2022
£’000 |
|
|
2021
£’000 |
|
|
2020
£’000 |
|
| |
|
|
|
|
|
|
|
|
|
| Loss before tax from continuing operations |
|
|
(525,474 |
) |
|
|
(531,454 |
) |
|
|
(99,847 |
) |
| Loss before tax from discontinued operations |
|
|
(188,422 |
) |
|
|
(17,759 |
) |
|
|
(3,809 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Current corporation tax rate of 19% |
|
|
(99,840 |
) |
|
|
(98,727 |
) |
|
|
(18,971 |
) |
| Impact of difference in overseas tax rates |
|
|
(17 |
) |
|
|
- |
|
|
|
- |
|
| Expenses not deductible for tax purposes |
|
|
977 |
|
|
|
55,356 |
|
|
|
1,238 |
|
| Adjustment in respect of previous periods |
|
|
- |
|
|
|
381 |
|
|
|
- |
|
| Impact of rate change |
|
|
(1,355 |
) |
|
|
1,402 |
|
|
|
- |
|
| Deferred tax asset not recognized |
|
|
35,867 |
|
|
|
64,336 |
|
|
|
17,733 |
|
| Impact of share scheme |
|
|
9,089 |
|
|
|
- |
|
|
|
- |
|
| Impairment of goodwill |
|
|
47,927 |
|
|
|
- |
|
|
|
- |
|
| 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 |
|
|
(7,352 |
) |
|
|
(2,162 |
) |
|
|
(969 |
) |
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.
Changes to UK corporation tax rates were substantively
enacted by the Finance Bill 2021 (on May 24, 2021). These included an increase in the corporation tax rate from 19% to 25% from April
1, 2023. Deferred tax balances have been remeasured accordingly where appropriate.
Deferred tax
| |
|
At
December 31 |
|
|
At
December 31 |
|
| |
|
2022
£’000 |
|
|
2021
£’000 |
|
| |
|
|
|
|
|
|
| Deferred tax assets |
|
|
|
|
|
|
| Share-based payments |
|
|
622 |
|
|
|
10,822 |
|
| Losses |
|
|
506 |
|
|
|
2,081 |
|
| Short-term timing differences |
|
|
- |
|
|
|
119 |
|
| Other temporary differences |
|
|
- |
|
|
|
67 |
|
| Total deferred tax assets recognized |
|
|
1,128 |
|
|
|
13,089 |
|
| |
|
|
|
|
|
|
|
|
| Deferred tax liabilities |
|
|
|
|
|
|
|
|
| Fixed asset temporary differences |
|
|
- |
|
|
|
(5,280 |
) |
| Intangible asset differences |
|
|
- |
|
|
|
(6,632 |
) |
| Other temporary differences |
|
|
(1,128 |
) |
|
|
(1,263 |
) |
| Total deferred tax liabilities |
|
|
(1,128 |
) |
|
|
(13,175 |
) |
| |
|
|
|
|
|
|
|
|
| Deferred tax liabilities, net |
|
|
- |
|
|
|
(86 |
) |
Reconciliation of deferred tax liabilities, net
| |
|
£’000 |
|
| |
|
|
|
| At December 31, 2020 |
|
|
- |
|
| |
|
|
|
|
| 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 |
) |
| |
|
|
|
|
| Income tax recognized in the income statement |
|
|
9,989 |
|
| Prior year adjustments |
|
|
23 |
|
| Business combinations |
|
|
(2,501 |
) |
| Equity |
|
|
(7,425 |
) |
| At December 31, 2022 |
|
|
- |
|
The Group has unutilized tax losses of £554.1
million (2021: £488.3 million) which are available against future taxable profits for an indefinite period.
|