Taxation (Tables)

6 Months Ended

Jun. 30, 2018

Taxation

Schedule of relationship between tax expense and accounting profit

	Half-year to		Half-year to		Half-year to
	30 June		30 June		31 Dec
	2018		2017		2017
	£m		£m		£m
Profit before tax	3,117		2,894		2,731
UK corporation tax thereon at 19 per cent (2017:19.25 per cent)	(592	)	(557	)	(525	)
Impact of surcharge on banking profits	(186	)	(231	)	(221	)
Non-deductible costs: conduct charges	(92	)	(170	)	(115	)
Non-deductible costs: bank levy	—		—		(44	)
Other non-deductible costs	(44	)	(36	)	(23	)
Non-taxable income	51		55		17
Tax-exempt gains on disposals	38		69		59
Recognition of losses that arose in prior years	(10	)	9		(9	)
Remeasurement of deferred tax due to rate changes	10		(35	)	26
Differences in overseas tax rates	3		1		(16	)
Policyholder tax	(36	)	(37	)	(29	)
Adjustments in respect of prior years	8		26		59
Tax effect of share of results of joint ventures	—		1		(2	)
Tax expense	(850	)	(905	)	(823	)