Taxation (Tables)

12 Months Ended

Dec. 31, 2024

Major components of tax expense (income) [abstract]

The tax charge comprises:


	2024	2023	2022
	£m	£m	£m
Corporation tax
Current year	466	433	427
Prior years	(42)	(86)	(56)
	424	347	371
Deferred tax
Current year	6	(197)	9
Prior years	(28)	(1)	5
	(22)	(198)	14
Tax charge	402	149	385

Summary of Tax Charge Reconciled to Profit Before Taxation

The tax charge for the year can be reconciled to profit before taxation in the consolidated income statement as follows:


	2024		2023		2022
	£m		£m		£m
Profit before taxation	1,031		346		1,160
Tax at the corporation tax rate of 25.0%1	258		81		220
Tax effect of (earnings)/losses from associates	(9)		(15)		17
Irrecoverable withholding taxes	29		35		26
Tax effect of items that are not deductible in determining taxable profits	101		39		68
Tax effect of non-deductible goodwill impairment	65		16		7
Effect of different tax rates in subsidiaries operating in other jurisdictions	18		42		94

Origination and reversal of unrecognised temporary differences	(10)		9		(1)
Tax losses not recognised or utilised in the year	21		44		10
Utilisation of tax losses not previously recognised	(6)		(15)		(5)
Net release of prior year provisions in relation to acquired businesses	—		(4)		(3)
Other prior year adjustments	(70)		(83)		(48)
Impact of OECD Pillar Two income taxes	5		—		—
Tax charge	402		149		385
Effective tax rate on profit before tax	39.0	%	43.1	%	33.1	%

Note

1As the Group is subject to the tax rates of more than one country, it has chosen to present its reconciliation of the tax charge using the UK corporation tax rate of 25.0% (2023: 23.5%, 2022: 19.0%).