v3.25.4
Deferred income tax
 12 Months Ended
Dec. 31, 2025
Texts Block [Abstract]  
Deferred income tax
13. Deferred income tax
 
  All figures in £ millions
   
   2025
    
   2024
  
Deferred income tax assets
     
58
        52  
Deferred income tax liabilities
     
(89
)
      (63 ) 
 
 
  
Net deferred income tax liability
     
(31
) 
      (11 ) 
Substantially all of the deferred income tax assets are expected to be recovered after more than one year. See note 7 for details of provisions for tax uncertainties held within deferred tax.
Deferred tax assets and liabilities are presented on a net basis where the Group has a legally enforceable right of offset and the taxes relate to the same fiscal authority.
At 31 December 2025, the Group has gross tax losses for which no deferred tax asset is recognised of £
896m (2024: £965m). The expiry date and key geographic split of these losses is set out in the following table.

 
     
Gross
     
Tax effected
  
  Year ended
  31 December 2025
   
UK
     
US
     
Other
     
Total
     
UK
     
US
     
Other
     
Total
  
Tax losses expiring:
                                                                        
Within 10 years
     
–
       
411
       
14
       
425
       
–
       
86
       
3
       
89
  
Within
10-20
years
     
–
       
117
       
–
       
117
       
–
       
6
       
–
       
6
  
Available indefinitely
       167          39        148     
 
 354
 
      42        2        47     
 
 91
 
                 
Total
     
167
       
567
       
162
       
896
       
42
       
94
       
50
       
186
  
 
 

 
 
 
     
Gross
     
Tax effected
  
  Year ended
  31 December 2024
   
UK
     
US
     
Other
     
Total
     
UK
     
US
     
Other
     
Total
  
Tax losses expiring:
                        
Within 10 years
      –        443        21     
 
464
 
      –        92        5     
 
97
 
Within
10-20
years
      –        135        –     
 
135
 
      –        7        –     
 
7
  
Available indefinitely
      167        38        161     
 
366
 
      42        2        52     
 
96
 
                 
Total
      167      616      182     
 
965
        42      101      57   
 
200
 
The decrease in unrecognised tax losses in the US is principally due to the impact of foreign exchange movements. The decrease in unrecognised tax losses in Other is principally due to the increased recognition of tax losses in Brazil during the period. Other unrecognised tax losses includes £100m gross (2024: £116m) and £34m tax effected (2024: £39m) relating to Brazil.
Other gross deductible temporary differences for which no deferred tax asset is recognised total £198m (2024: £194m). This includes £190m (2024: £188m) in respect of interest limitations. The amount of temporary differences associated with subsidiaries for which no deferred tax has been provided totals £274m (2024: £290m).
No deferred income tax assets (2024
: £9m)
have been recognised in countries that reported a tax loss in either the current or preceding year. The 2024 balance primarily arose in respect of tax losses in Australia and Argentina.
The recognition of the deferred income tax assets is supported by management’s forecasts of the future profitability of the relevant countries. In some cases deferred income tax assets are forecast to be recovered through taxable profits over a period that exceeds five years. Management consider these forecasts are sufficiently reliable to support the recovery of the assets. Where there are insufficient forecasts of future profits, deferred income tax assets have not been recognised.
The movement in deferred income tax assets and liabilities during the year is as follows:

 
  All figures in £ millions
 
Trading
losses
 
 
Accruals
and other
provisions
 
 
Retirement
benefit
obligations
 
 
Deferred
revenue
 
 
Goodwill
and
intangibles
 
 
Interest
limitations
 
 
  Other
 
 
  Total
 
Deferred income tax assets/(liabilities)
                
At 1 January 2024
     101       59       (114 )      43       (152 )      34       18       (11 ) 
Exchange differences
     (2 )      –       –       –       –       –       (1 )      (3 ) 
Acquisitions and disposals of subsidiaries
     –       –       –       –       –       –       –       –  
Income statement benefit/(charge)
     (23 )      (2 )      3       2       29       (16 )      4       (3 ) 
Tax charge in OCI/equity
     –       7       (2 )      –       –       –       1       6  
At 31 December 2024
  
 
76
 
  
 
64
 
  
 
(113
) 
  
 
45
 
  
 
(123
) 
  
 
18
 
  
 
22
 
  
 
(11
) 
Exchange differences
    
–
      
(2
) 
    
–
      
(1
)
    
–
      
–
      
–
      
(3
) 
Acquisitions and disposals of subsidiaries
    
–
      
–
      
–
      
–
      
(1
) 
    
–
      
–
      
(1
) 
Income statement benefit/(charge)
    
(10
) 
    
2
 
    
(6
)
    
(2
)
    
35
      
(18
) 
    
(8
)
    
(7
) 
Tax charge in OCI/equity
    
–
      
(6
)
    
(3
) 
    
–
      
–
      
–
      
–
 
    
(9
) 
                 
At 31 December 2025
    
66
      
58
      
(122
)
    
42
      
(89
)
    
–
      
14
      
(31
) 
Included within accruals and other provisions is an amount of £
15
m (2024: £23m) in respect of share based payments. Other deferred income tax items include temporary differences in respect of
right-of-use
assets (deferred tax asset of £
37
m
 (2024: £47m), with an offsetting deferred tax liability of £
33
m (2024: £37m), and accelerated capital allowances of £
10
m (2024: £11m).