13. Deferred income tax


All figures in £ millions	2017			2016
Deferred income tax assets		95			451
Deferred income tax liabilities		(164	)		(466	)

Net deferred income tax		(69	)		(15	)

Substantially all of the deferred income tax assets are expected to be recovered after more than one year.

Deferred income tax assets and liabilities shall be offset when there is a legally enforceable right to offset current income tax assets with current income tax liabilities and where the deferred income taxes relate to the same fiscal authority. At 31 December 2017, the Group has unrecognised deferred income tax assets of £32m (2016: £32m) in respect of UK losses, £18m (2016: £18m) in respect of US losses and approximately £86m (2016: £95m) in respect of losses in other territories. The UK losses are capital losses. The US losses relate to state taxes and therefore have expiry periods of between five and 20 years. Other deferred tax assets of £12m (2016: £9m) have not been recognised.

Deferred tax assets of £75m (2016: £95m) have been recognised in countries that reported a loss in either the current or preceding year. The majority arises in Brazil in respect of tax deductible goodwill. It is considered more likely than not that there will be sufficient future taxable profits to realise these assets.

The recognition of the deferred income tax assets is supported by management’s forecasts of the future profitability of the relevant countries.

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


All figures in £ millions	Trading losses			Returns provisions			Retirement benefit obligations			Deferred revenue			Goodwill and intangibles			Other			Total
Deferred income tax assets/(liabilities)
At 1 January 2016		19			43			(9	)		55			(348	)		(44	)		(284	)
Exchange differences		3			7			10			15			(84	)		27			(22	)
Income statement (charge)/benefit		—			(15	)		(4	)		50			144			86			261
Disposal through business disposal		—			—			—			(3	)		(7	)		—			(10	)
Tax benefit in other comprehensive income		—			—			40			—			—			—			40

At 31 December 2016		22			35			37			117			(295	)		69			(15	)

Exchange differences		(2	)		(3	)		(4	)		(8	)		19			(8	)		(6	)
Income statement (charge)/benefit		(11	)		6			7			(9	)		118			(1	)		110
Disposal through business disposal		—			—			—			—			—			(3	)		(3	)
Tax charge in other comprehensive income		—			—			(84	)		—			—			(5	)		(89	)
Transfer to assets/(liabilities) classified as held for sale		—			(4	)		—			(73	)		3			8			(66	)

At 31 December 2017		9			34			(44	)		27			(155	)		60			(69	)

Other deferred income tax items include temporary differences in respect of share-based payments, provisions, depreciation and royalty advances.