Income tax (Tables)

12 Months Ended

Dec. 31, 2017

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Summary of Components of Current Tax Expense Income and Adjustments for Current Tax of Prior Periods

All figures in £ millions	Notes		2017			2016			2015
Current tax
Charge in respect of current year				(121	)		(66	)		(155	)
Adjustments in respect of prior years				(2	)		27			42
Total current tax charge				(123	)		(39	)		(113	)
Deferred tax
In respect of temporary differences				96			277			185
Other adjustments in respect of prior years				14			(16	)		9
Total deferred tax credit		13		110			261			194
Total tax (charge)/credit				(13	)		222			81

Summary of Profit/(Loss) Before Tax Differences Calculated

The tax on the Group’s profit/(loss) before tax differs from the theoretical amount that would arise using the UK tax rate as follows. Information for 2016 has been re-presented to give additional disclosure.

All figures in £ millions	2017			2016			2015
Profit/(loss) before tax		421			(2,557	)		(433	)
Tax calculated at UK rate (2017: 19.25%, 2016: 20%, 2015: 20.25%)		(81	)		511			88
Effect of overseas tax rates		15			424			52
Joint venture and associate income reported net of tax		15			19			10
Intangible impairment not subject to tax		—			(722	)		(60	)
Intra-group financing benefit		26			34			18
Movement in provisions for tax uncertainties		49			(37	)		30
Impact of US tax reform		(1	)		—			—
Net expense not subject to tax		(39	)		(8	)		(10	)
Gains and losses on sale of businesses not subject to tax		8			15			(32	)
Utilisation of previously unrecognised tax losses and credits		(1	)		—			—
Unrecognised tax losses		(16	)		(25	)		(22	)
Adjustments in respect of prior years		12			11			7
Total tax (charge)/credit		(13	)		222			81
UK		(36	)		46			(25	)
Overseas		23			176			106
Total tax (charge)/credit		(13	)		222			81
Tax rate reflected in earnings		3.1	%		8.7	%		18.7	%

Summary of Tax Benefit/(Charge) Recognised in Other Comprehensive Income

The tax (charge)/benefit recognised in other comprehensive income is as follows:

All figures in £ millions	2017			2016			2015
Net exchange differences on translation of foreign operations		9			(5	)		5
Fair value gain on other financial assets		(4	)		—			—
Remeasurement of retirement benefit obligations		(42	)		58			(24	)
		(37	)		53			(19	)