Company: HBCYF
Filing Date: 2025-02-20
Form Type: 20-F
Source: 0001089113-25-000040
Chunk: 563

Company: HSBC HOLDINGS PLC
Filing Date: 2025-02-20
Form: 20-F
Chunk 563
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 0.5b n (2023: $ 0.9b n) in France. The UK deferred tax asset of $ 2.6b n excluded a $ 1.8b n deferred tax liability arising on the UK pension scheme surplus, the reversal of which is not taken into account when estimating future taxable profit due to the level of uncertainty as to the timing and manner of its reversal. The UK deferred tax assets are supported by forecasts of taxable profit, also taking into consideration the history of profitability in the relevant businesses. The majority of the deferred tax asset relates to tax attributes which do not expire and are forecast to be recovered within 3 years and as such are less sensitive to changes in long-term profit forecasts. The net US deferred tax asset of $ 3.0b n included $ 1.2b n related to US tax losses, of which $ 0.9b n expire in 10 to 15 years . Management expects the US deferred tax asset to be substantially recovered withi n 13years , wit h the majority recovered in the first 5 years . The net deferred tax asset in France of $ 0.5b n included $ 0.5b n related to tax losses, which are expected to be substantially recovered within 12 years. Unused tax losses with a tax value of $ 0.2 bn have not been recognised due to the absence of convincing evidence regarding the availability of sufficient future taxable profits against which to recover them. Unrecognised deferred tax The amount of gross temporary differences, unused tax losses and tax credits for which no deferred tax asset is recognised in the balance sheet was $ 11.0 b n (2023: $ 10.4 b n). This amount included unused US state tax losses of $ 3.8 bn (2023: $ 4.0 bn ) which are forecast to expire before they are recovered, unused French tax losses of $ 0.7 bn (2023: nil ) for w hich there is insufficient evidence of future taxable profits to support recognition, and unused UK tax losses of $ 3.5b n (2023: $ 4.5b n), which arose prior to 1 April 2017 and can only be recovered against future taxable profits of HSBC Holdings. No deferred tax was recognised on these losses due to the absence of convincing evidence regarding the availability of sufficient future taxable profits against which to recover them . Deferred tax asset recognition is reassessed at each balance sheet