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Notes to the consolidated financial statements
Year ended 31 July 2007
15. Deferred tax assets and liabilities
The deferred tax assets and liabilities shown in the balance sheet are analysed as follows:
| Deferred tax | 2007 £m |
2006 £m |
|---|---|---|
| Deferred tax assets | 9 | 16 |
| Deferred tax liabilities | (275) | (88) |
| (266) | (72) | |
| Current | (66) | (67) |
| Non-current | (200) | (5) |
| (266) | (72) |
The following are the major deferred tax liabilities and assets recognised by the Group and movements thereon during the current and prior reporting period:
| Goodwill and intangibles £m |
Share- based payment £m |
Properties £m |
Retirement benefit obligations £m |
Inventory £m |
Other £m |
Total £m |
|
|---|---|---|---|---|---|---|---|
| At 1 August 2005 | (30) | 26 | (39) | 73 | (42) | 5 | (7) |
| Credit/(charge) to income | 9 | (7) | (2) | (1) | (15) | 7 | (9) |
| (Charge) to equity | – | (6) | – | (3) | – | (2) | (11) |
| Acquisition of subsidiaries | (45) | – | (5) | 3 | – | (4) | (51) |
| Currency translation adjustment | 2 | – | – | (1) | 3 | 2 | 6 |
| At 31 July 2006 | (64) | 13 | (46) | 71 | (54) | 8 | (72) |
| Credit/(charge) to income | 34 | (2) | (4) | (8) | (21) | 15 | 14 |
| Credit/(charge) to equity | – | 1 | – | (20) | – | 1 | (18) |
| Acquisition of subsidiaries | (133) | – | (78) | – | 8 | 12 | (191) |
| Currency translation adjustment | 2 | (2) | – | (3) | 5 | (1) | 1 |
| At 31 July 2007 | (161) | 10 | (128) | 40 | (62) | 35 | (266) |
There are other potential deferred tax assets in relation to tax losses totalling £43 million (2006: £43 million) that have not been recognised on the basis that their future economic benefit is uncertain. All of these losses may be carried forward indefinitely.
No deferred tax liability has been recognised in respect of a further £650 million (2006: £459 million) of unremitted earnings of subsidiaries because the Group is in a position to control the timing of reversal of the associated temporary deferred tax differences and it is probable that such differences will not reverse in the foreseeable future.