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Deferred tax (Tables)

12 Months Ended

Jun. 30, 2023

Deferred Tax

Schedule of deferred taxes

Deferred tax assets and deferred tax liabilities are offset where the Group has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after allowable offset):


		2023		2022
		£’000		£’000
UK deferred tax liabilities		3,304		7,402
At 30 June		3,304		7,402

The movement in deferred tax assets and deferred tax liabilities during the year is as follows:


		2023		2022
		£’000		£’000
At 1 July		7,402		35,546
Credited to statement of profit or loss (Note 10)		(4,801)		(29,431)
Expensed to other comprehensive income (Note 10)		1,018		1,287
Credit relating to share-based payments⁽¹⁾		(315)		—
At 30 June		3,304		7,402

Schedule of unrecognized US deferred tax asset

General

Net operating

Accruals not

Salary not

losses and

paid within 8.5

paid with

Foreign

interest

months of

2.5 months

Intangible

tax credits

restriction

year end

of year end

assets

Other

Total

£’000

£’000

£’000

£’000

£’000

£’000

£’000

Unrecognized US deferred tax asset

20,553

56,071

3,488

4,089

3,112

3,235

90,548

US

Deferred Tax

Schedule of movements in net deferred tax (liability)/asset


				Unrealized
		Net		foreign
		operating		exchange
		losses and		and		Property,
		interest		derivative		plant and
		restriction		movements		equipment		Total⁽²⁾
		£’000		£’000		£’000		£’000
At 1 July 2021		(3,359)		—		3,359		—
Expensed/(credited) to statement of profit or loss (Note 10)		(4,492)		4,575		(83)		—
At 30 June 2022		(7,851)		4,575		3,276		—
Expensed/(credited) to statement of profit or loss (Note 10)		875		(1,779)		904		—
At 30 June 2023		(6,976)		2,796		4,180		—

(1)	Credits relating to share-based payments arise on the movement in the share price on equity-settled awards between the grant date and the reporting date – see consolidated statement of changes in equity above.

(2)

The deferred tax assets were written down in the year ended 30 June 2021 to the extent that they will not shelter profits arising from the unwinding of the deferred tax liability. This is due to the change in the substantively enacted UK Corporation tax rate from 19% to 25%, effective April 2023. The current US federal corporate income tax rate is 21%. As a result of this change the US deferred tax asset is no longer forecast to give rise to a future economic benefit. It is expected that any future US tax payable will be sheltered by future foreign tax credits arising from UK tax payable. Future increases in the US federal corporate income tax rate could result in a reversal of the US deferred tax asset write down.

UK

Deferred Tax

Schedule of movements in net deferred tax (liability)/asset


		Accelerated				Non		Property		Net
		tax				qualifying		fair value		operating
		depreciation		Intangibles		property		adjustment		losses		Other⁽¹⁾		Total⁽²⁾
		£’000		£’000		£’000		£’000		£’000		£’000		£’000
At 1 July 2021		609		15,000		17,482		17,442		(12,180)		(2,807)		35,546
(Credited)/expensed to statement of profit or loss (Note 10)		(229)		1,359		(5)		(631)		(32,427)		2,502		(29,431)
Expensed to other comprehensive income (Note 10)		—		—		—		—		40		1,247		1,287
At 30 June 2022		380		16,359		17,477		16,811		(44,567)		942		7,402
Expensed/(credited) to statement of profit or loss (Note 10)		1,222		(622)		(5)		(631)		(2,290)		(2,475)		(4,801)
Expensed to other comprehensive income (Note 10)		—		—		—		—		349		669		1,018
Credit relating to share based payments		—		—		—		—		—		(315)		(315)
At 30 June 2023		1,602		15,737		17,472		16,180		(46,508)		(1,179)		3,304

(1)	The “Other” deferred tax asset balance primarily comprises foreign exchange differences; fair value movements recognized in the hedging reserve; pensions not paid in the year and salaries not paid before 31 March 2024.

(2)	Of the total deferred tax liability, £3,304,000 is expected to be settled after more than one year.