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Income tax credit/(expense) (Tables)

12 Months Ended

Jun. 30, 2023

Income tax credit/(expense)

Schedule of income tax expense


		2023		2022		2021
		£’000		£’000		£’000
Current tax:
Current tax on loss for the year		(217)		5,084		(3,972)
Adjustment in respect of previous years		(116)		223		490
Foreign tax		(572)		(625)		(688)
Total current tax (expense)/credit		(905)		4,682		(4,170)
Deferred tax:
US deferred tax:
Origination and reversal of temporary differences		—		—		3,831
Re-measurement of US deferred tax asset		—		—		(66,561)
Adjustment in respect of previous years		—		—		973
Total US deferred tax expense (Note 17)		—		—		(61,757)
UK deferred tax:
Origination and reversal of temporary differences		5,176		29,142		9,762
Adjustment in respect of previous years		(375)		289		(800)
Impact of change in UK corporation tax rate		—		—		(11,224)
Total UK deferred tax credit/(expense) (Note 17)		4,801		29,431		(2,262)
Total deferred tax credit/(expense)		4,801		29,431		(64,019)
Total income tax credit/(expense)		3,896		34,113		(68,189)

Schedule of reconciliation of the total income tax expense


		2023		2022		2021
		£’000		£’000		£’000
Loss before income tax		(32,574)		(149,623)		(24,027)
Loss before tax multiplied by weighted average UK corporation tax rate of 20.5% (2022: 19.0% - UK corporation tax rate; 2021: 21.0% - weighted average US federal corporate income tax rate)		6,678		28,428		5,046
Tax effects of:
Adjustment in respect of previous years		(491)		512		663
Difference in tax rates on non-US operations		—		—		216
Foreign exchange losses on US dollar denominated tax basis		—		—		(3,146)
Expenses not deductible for tax purposes		(2,650)		(1,197)		(526)
Irrecoverable foreign tax credits		(572)		(625)		—
Impact of change in UK Corporation tax rate⁽¹⁾		931		6,995		(77,785)
Unrealized foreign exchange gains not taxable in the US		—		—		7,343
Re-measurement of foreign tax credit US deferred tax asset		—		—		—
Total income tax credit/(expense)		3,896		34,113		(68,189)

⁽¹⁾

The credit of £931,000 arising in the fiscal year ended 30 June 2023 is a result of UK deferred tax being recognized at the UK corporation tax rate of 25% but the total tax credit reconciliation is performed at the current year tax rate of 20.5% resulting in a reconciling item. The current year weighted average UK corporation tax rate of 20.5% is a result of the increase in the UK corporation tax rate from 19.0% to 25.0% in April 2023.

Schedule of amounts relating to tax recognized directly in other comprehensive income


		2023		2022		2021
		£’000		£’000		£’000
US deferred tax (Note 17)		—		—		3,395
UK deferred tax (Note 17)		(1,018)		(1,287)		(1,947)
Total deferred tax		(1,018)		(1,287)		1,448
Current tax		—		—		(2,017)
Total income tax expense recognized in other comprehensive loss		(1,018)		(1,287)		(569)