XML 285 R24.htm IDEA: XBRL DOCUMENT
v3.25.1

Deferred income tax | 12 Months Ended
--- | ---
Dec. 31, 2024
Deferred income tax |
Deferred income tax | A14. Deferred income tax Deferred income tax is provided on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the Consolidated Financial Statements. The following temporary differences are not provided for: the initial recognition of goodwill; the initial recognition of assets or liabilities in transactions other than a business combination that at the time of the transactions affects neither the accounting nor taxable profit or loss; and differences relating to investments in subsidiaries to the extent that they will probably not reverse in the foreseeable future. The amount of deferred income tax is determined using tax rates (and laws) that have been enacted (or substantively enacted) at the balance sheet date, and are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled. Deferred tax balances are not discounted. Deferred tax assets and liabilities are offset against each other when the timing differences relate to income taxes levied by the same tax authority on an entity or different entities which are part of a tax consolidation and there would be the intention to settle on a net basis. Deferred income tax assets are recognised to the extent that it is probable that future taxable profits will be available against which the temporary differences can be utilised. The amount of deferred tax assets recognised at each balance sheet date is adjusted to reflect changes in management’s assessment of future taxable profits. In recognising the deferred tax asset in respect of losses, management has estimated the quantum of future taxable profits, applying a risk weighting to future profits to reflect the uncertainties. The movement on the deferred income tax account is as follows: ​
​ | ​ | ​ | ​ | ​
​ | ​ | 2024 | ​ | 2023
​ |  | £m |  | £m
At 1 January |  | (474) |  | (470)
Exchange differences |  | (8) |  | 25
Impact of acquisition of companies and businesses |  | 19 |  | (8)
(Charged)/credited to the income statement |  | (4) |  | (26)
(Charged)/credited to other comprehensive income | ​ | (7) | ​ | 4
(Charged)/credited to equity |  | (3) |  | 1
At 31 December |  | (477) |  | (474)
Deferred taxation has been presented on the balance sheet as follows: |  |  |  |
Deferred tax asset within non-current assets |  | 34 |  | 43
Deferred tax liability within non-current liabilities |  | (511) |  | (517)
​ |  | (477) |  | (474)
​ The major components of deferred tax assets and liabilities at the year end and their changes during the year (without taking into consideration the offsetting of balances within the same tax jurisdiction) are as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | Customer |  | Accelerated |  | ​ |  | ​ |  | ​ |  | ​ |  | ​ |  | ​
​ | ​ | lists/ | ​ | tax | ​ | ​ | ​ | IFRS 15 | ​ | Tax | ​ | Share-based | ​ | ​ | ​ | ​
​ | ​ | intangibles | ​ | depreciation | ​ | Provisions | ​ | Contacts | ​ | losses | ​ | payments | ​ | Other2 | ​ | Total
​ | ​ | £m | ​ | £m | ​ | £m | ​ | £m | ​ | £m | ​ | £m | ​ | £m | ​ | £m
At 1 January 2023 | ​ | (572) |  | (75) |  | 171 |  | (33) |  | 23 |  | 16 |  | — |  | (470)
Exchange differences |  | 26 | ​ | 3 | ​ | (7) | ​ | 2 | ​ | — | ​ | — | ​ | 1 | ​ | 25
Recognised in income statement |  | 2 | ​ | (12) | ​ | (15) | ​ | (10) | ​ | 7 | ​ | (2) | ​ | 4 | ​ | (26)
Recognised in other comprehensive income |  | — | ​ | — | ​ | — | ​ | — | ​ | 8 | ​ | — | ​ | (4) | ​ | 4
Recognised in equity |  | — | ​ | — | ​ | — | ​ | — | ​ | — | ​ | 1 | ​ | — | ​ | 1
Impact of business combinations |  | (8) | ​ | — | ​ | — | ​ | — | ​ | — | ​ | — | ​ | — | ​ | (8)
At 31 December 2023 |  | (552) | ​ | (84) | ​ | 149 | ​ | (41) | ​ | 38 | ​ | 15 | ​ | 1 | ​ | (474)
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
At 1 January 2024 |  | (552) |  | (84) |  | 149 |  | (41) |  | 38 |  | 15 |  | 1 |  | (474)
Exchange differences | ​ | (11) | ​ | (1) | ​ | 6 | ​ | (2) | ​ | — | ​ | — | ​ | — | ​ | (8)
Recognised in income statement | ​ | (4) | ​ | 4 | ​ | 8 | ​ | (19) | ​ | 3 | ​ | 1 | ​ | 3 | ​ | (4)
Recognised in other comprehensive income |  | — | ​ | — | ​ | — | ​ | — | ​ | — | ​ | — | ​ | (7) | ​ | (7)
Recognised in equity |  | — | ​ | — | ​ | — | ​ | — | ​ | — | ​ | (3) | ​ | — | ​ | (3)
Impact of business combinations1 |  | 24 | ​ | — | ​ | (7) | ​ | 2 | ​ | — | ​ | — | ​ | — | ​ | 19
At 31 December 2024 |  | (543) | ​ | (81) | ​ | 156 | ​ | (60) | ​ | 41 | ​ | 13 | ​ | (3) | ​ | (477)
1. | Deferred tax liabilities have been adjusted in 2024 by a decrease of £28 m relating to the Terminix acquisition with a corresponding reduction in goodwill.
2. | Included within other deferred tax assets/liabilities are retirement benefits and unremitted earnings from subsidiaries.
A deferred tax asset of £41m has been recognised in respect of losses which are expected to be utilised within 10 years (2023: £38m), of which £30m (2023: £28m) relates to UK losses carried forward at 31 December 2024. This amount has been calculated by estimating the future UK taxable profits, against which the UK tax losses will be utilised, progressively risk-weighted, and applying the tax rates (substantively enacted as at the balance sheet date) applicable for each year. A deferred tax asset is now recognised on all the UK tax losses (2023: £34m unrecognised). The estimates of future profits are based on management’s financial forecasts which are used to support other aspects of the Financial Statements, such as impairment testing. At the balance sheet date, the Group had tax losses of £242m (2023: £169m) on which no deferred tax asset is recognised because it is not considered probable that future taxable profits will be available in certain jurisdictions to be able to benefit from those tax losses. Of the losses, £203m (2023: £95m) will expire at various dates between 2025 and 2045. In addition, the Group has UK capital losses carried forward of £276m (2023: £276m) on which no deferred tax asset is recognised. These losses have no expiry date, but management considers the future utilisation of these losses to be unlikely. Dividends received from subsidiaries are largely exempt from UK taxation but may be subject to dividend withholding or other taxes levied by the overseas tax jurisdictions in which the subsidiaries operate. A deferred tax liability of £3m (2023: £4m) has been recognised in respect of this liability as it is anticipated that these profits will be distributed to the UK in the foreseeable future. At the balance sheet date, there is no material unprovided deferred tax liability were overseas earnings to be distributed to the UK. The Company is within the scope of the OECD Pillar 2 model rules. Pillar 2 legislation was enacted in the United Kingdom, the jurisdiction in which the Group’s ultimate parent entity is incorporated, and is in effect from 1 January 2024. The Company applies the exception to recognising and disclosing information about deferred tax assets and liabilities related to Pillar 2 income taxes, as provided in the amendments to IAS 12 issued in May 2023. Further information about Pillar 2 legislation can be found in the Notes to the Consolidated Financial Statements in Note A12.

X
- Definition The disclosure of deferred taxes. [Refer: Deferred tax liabilities; Deferred tax assets] + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Name IAS -Number 1 -IssueDate 2024-01-01 -Paragraph 10 -Subparagraph e -URI https://taxonomy.ifrs.org/xifrs-link?type=IAS&num=1&code=ifrs-tx-2024-en-r&anchor=para_10_e&doctype=Standard -URIDate 2024-03-27 + Details
Name: | ifrs-full_DisclosureOfDeferredTaxesExplanatory
Namespace Prefix: | ifrs-full_
Data Type: | dtr-2022:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | rto_DeferredIncomeTaxDisclosureAbstract
Namespace Prefix: | rto_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration