Preliminary results for the year ended 30 January 2010
Notes to the consolidated financial statements
Year ended 30 January 2010
6. Income tax expense
| £ millions | 2009/10 | 2008/09 |
|---|---|---|
| UK corporation tax | ||
| Current tax on profits for the year | 85 | 34 |
| Adjustments in respect of prior years | (7) | (14) |
| 78 | 20 | |
| Overseas tax | ||
| Current tax on profits for the year | 85 | 111 |
| Adjustments in respect of prior years | (1) | 6 |
| 84 | 117 | |
| Deferred tax | ||
| Current year | 4 | (41) |
| Adjustments in respect of prior years | 15 | (8) |
| 19 | (49) | |
| Income tax expense – continuing operations | 181 | 88 |
The effective rate of tax on profit from continuing operations before exceptional items and excluding tax adjustments in respect of prior years is 30% (2008/09: 31%). Tax on exceptional items for the year is a charge of £7m, all of which relates to current year items. In 2008/09 tax on exceptional items was a credit of £7m, all of which related to current year items.
Kingfisher paid €138m tax to the French tax authorities in the year ended 31 January 2004 as a consequence of the Kesa Electricals demerger and recorded this as an exceptional tax charge. Kingfisher appealed against this tax liability and the tribunal found in favour of Kingfisher in June 2009. As a result, on 7 September 2009 the Group received €169m (£148m) from the French tax authorities, representing a refund of the €138m and €31m of repayment supplement. The French tax authorities have appealed against this decision and therefore no income has been recognised.
