9 Tax.

(XLS:) Notes to the Supplementary Financial Statements – tax

 

Profit/(loss) before tax
2012
£m

Tax (expense)/
credit
2012
£m

Profit/(loss)
before tax
2011
£m

Tax (expense)/
credit
2011
£m

1.

Primarily reflects the implementation of the UK planned future reductions in corporation tax to 21% on 1 April 2014, and improvements in the US to the recognition of tax losses and DAC tax assets.

From continuing operations

 

 

 

 

Protection and Annuities

668

(145)

808

(189)

Savings

89

(19)

226

(54)

Investment management

216

(40)

210

(40)

US Protection

98

(25)

238

(83)

Group capital and financing

20

(4)

43

(6)

Investment projects

(50)

12

(56)

15

Operating profit

1,041

(221)

1,469

(357)

Investment variances

(32)

14

(111)

87

Effect of economic assumption changes

(162)

39

(21)

11

Losses attributable to non-controlling interests

(12)

(3)

Effect of tax rate changes and other taxation impacts1

67

156

Profit/(loss) before tax/Tax

835

(101)

1,334

(103)

The UK EEV calculations assume a tax basis which reflects the annualised current tax rate of 24.5% and the planned future reductions in corporation tax to 23% from 1 April 2013, and 21% from 1 April 2014. The tax rate used for grossing up in the income statement is based on a UK corporation tax rate of 21% (2011: 23%).

US, Netherlands and France covered business profits are also grossed up using the long term corporate tax rates of the respective territories i.e. US is 35% (2011: 35%), France is 34.3% (2011: 34.3%) and Netherlands is 25% (2011: 25%).