Income tax (Tables)
Dec. 31, 2025
All figures in £ millions |
Notes |
2025 |
2024 |
2023 |
||||||||||||
Current tax |
||||||||||||||||
Charge in respect of current year |
(108 |
) |
(132 | ) | (105 | ) | ||||||||||
Adjustments in respect of prior years |
(6 |
) |
60 | 20 | ||||||||||||
Total current tax charge |
(114 | ) |
(72 | ) | (85 | ) | ||||||||||
Deferred tax |
||||||||||||||||
In respect of temporary differences |
(9 |
) |
8 | (11 | ) | |||||||||||
Other adjustments in respect of prior years |
2 |
(11 | ) | (17 | ) | |||||||||||
Total deferred tax charge |
13 | (7 |
) |
(3 | ) | (28 | ) | |||||||||
Total tax charge |
(121 |
) |
(75 | ) | (113 | ) | ||||||||||
The tax on the Group’s profit before tax differs from the theoretical amount that would arise using the UK tax rate as follows:
All figures in £ millions |
2025 |
2024 |
2023 |
|||||||||
Profit before tax |
457 | 510 | 493 | |||||||||
Tax calculated at UK rate (2025: 25%; 2024: 25%; 2023: 23.5%) |
(114 |
) |
(127 | ) | (116 | ) | ||||||
Effect of overseas tax rates |
(3 |
) |
(1 | ) | (1 | ) | ||||||
Effect of UK rate change |
– |
– | (1 | ) | ||||||||
Net (expense)/income not subject to tax |
(5 |
) |
3 | (3 | ) | |||||||
Gains and losses on sale of businesses not subject to tax |
– |
– | 5 | |||||||||
Unrecognised tax losses |
6 |
2 | 1 | |||||||||
State Aid provision release |
– |
63 | – | |||||||||
Movement in provisions for tax uncertainties – current year |
(1 |
) |
(1 | ) | (2 | ) | ||||||
Movement in provisions for tax uncertainties – prior years |
(4 |
) |
(12 | ) | 1 | |||||||
Other prior year adjustments |
– |
(2 | ) | 3 | ||||||||
Total tax charge |
(121 |
) |
(75 | ) | (113 | ) | ||||||
UK |
(41 |
) |
21 | (54 | ) | |||||||
Overseas |
(80 |
) |
(96 | ) | (59 | ) | ||||||
Total tax charge |
(121 |
) |
(75 | ) | (113 | ) | ||||||
Tax rate reflected in earnings |
26.5% |
14.7% | 23.0% | |||||||||
 |
||||
• The application of tax legislation in relation to provisions for uncertain tax positions. |
||||
 |
||||
• The level of provisions required in relation to uncertain tax positions is complex and each matter is separately assessed. The estimation of future settlement amounts is based on a number of factors including the status of the unresolved matter, clarity of legislation, range of possible outcomes and the statute of limitations. |
||||
The tax benefit/(charge) recognised in other
comprehensive
income is as follows: All figures in £ millions |
2025 |
2024 |
2023 |
|||||||||
Net exchange differences on translation of foreign operations |
– |
2 | – | |||||||||
Fair value gains on other financial assets |
– |
– | – | |||||||||
Remeasurement of retirement benefit obligations |
(3 |
) |
(2 | ) | 20 | |||||||
(3 |
) |
– | 20 | |||||||||