Notes to the financial statements
21 Deferred taxation
The movements in deferred income tax assets and liabilities during the financial year, prior to the offsetting of the balances within the same tax jurisdiction, are shown below.
| Group | Accelerated tax depreciation £m |
Fair value gains £m |
Other £m |
Total £m |
|---|---|---|---|---|
| Deferred income tax liabilities | ||||
| At 25 March 2007 | (200) | (29) | (39) | (268) |
| Charge to income statement | 28 | – | (2) | 26 |
| Charge to equity | – | (3) | – | (3) |
| Rate change adjustment to income statement | 7 | – | 2 | 9 |
| Rate change adjustment to equity | – | 2 | – | 2 |
| At 22 March 2008 | (165) | (30) | (39) | (234) |
At 26 March 2006 |
(158) | (20) | (30) | (208) |
| Charge to income statement | (45) | – | (9) | (54) |
| Charge to equity | – | (7) | – | (7) |
| Part disposal of Sainsbury's Bank | – | – | (2) | (2) |
| Reclassification | 3 | (2) | 2 | 3 |
| At 24 March 2007 | (200) | (29) | (39) | (268) |
| Provisions £m |
Retirement benefit obligations £m |
Share-based payment £m |
Tax losses £m |
Total £m |
|
|---|---|---|---|---|---|
| Deferred income tax assets | |||||
| At 25 March 2007 | 14 | 48 | 30 | 8 | 100 |
| Charge to income statement | (3) | (26) | 9 | – | (20) |
| Charge to equity | – | (161) | (19) | (8) | (188) |
| Prior year adjustment to equity | – | – | 13 | – | 13 |
| Rate change adjustment to income statement | – | – | (1) | – | (1) |
| Rate change adjustment to equity | – | 10 | (1) | – | 9 |
| At 22 March 2008 | 11 | (129) | 31 | - | (87) |
At 26 March 2006 |
22 | 227 | 13 | 1 | 263 |
| (Charge)/credit to income statement | (5) | (127) | 10 | – | (122) |
| (Charge)/credit to equity | – | (52) | 7 | 8 | (37) |
| Part disposal of Sainsbury’s Bank | – | – | – | (1) | (1) |
| Reclassification | (3) | – | – | – | (3) |
| At 24 March 2007 | 14 | 48 | 30 | 8 | 100 |
Net deferred income tax liability |
|||||
| At 22 March 2008 | (321) | ||||
| At 24 March 2007 | (168) |
| Company | Fair value losses £m |
|---|---|
| Deferred income tax assets | |
| At 25 March 2007 | 1 |
| Charge to income statement | – |
| At 22 March 2008 | 1 |
At 26 March 2006 |
7 |
| Charge to income statement | (6) |
| At 24 March 2007 | 1 |
Deferred income tax assets have been recognised in respect of all income tax losses and other temporary differences giving rise to deferred income tax assets because it is probable that these assets will be recovered. Deferred income 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 on a net basis.