Company: BCS
Filing Date: 2025-02-13
Form Type: 20-F
Source: 0000312069-25-000114
Chunk: 552

Company: BARCLAYS PLC
Filing Date: 2025-02-13
Form: 20-F
Chunk 552
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 | -2.4% |
| Non-recurring items:                                                                                                                              |       |       |       |       |       |       |
| Remeasurement of UK deferred tax assets due to tax rate changes                                                                                   |     — |     — |     — |     — |   346 |  4.9% |
| Non-deductible provisions for investigations and litigation                                                                                       |    -1 | -0.0% |     — |     — |    93 |  1.3% |
| Non-deductible provisions for UK customer redress                                                                                                 |     2 |  0.0% |    -8 | -0.1% |    10 |  0.1% |
| Total tax charge                                                                                                                                  | 1,752 | 21.6% | 1,234 | 18.8% | 1,039 | 14.8% |

Note:

1 Banking surcharge includes the impact of the 3% UK banking surcharge rate on profits/losses and tax adjustments relating to UK banking entities.

Factors influencing the effective tax rate The effective tax rate of 21.6% is lower than the UK corporation tax rate of 25% primarily due to tax relief on payments made under AT1 instruments and tax relief on holdings of inflation-linked government bonds. These factors, which have each decreased the effective tax rate, are partially offset by non-creditable taxes including withholding taxes, and banking surcharge and other items. Factors that may influence the effective tax rate in future periods The Group’s future tax charge will be sensitive to the geographic mix of profits earned, the tax rates in force and changes to the tax rules in the jurisdictions that the Group operates in. A gain of £ 556 m has arisen on the acquisition of Tesco Bank. The acquisition is expected to generate a gain as a result of the consideration payable for net assets being lower than their fair value. The Group considers that the UK corporation tax treatment of £ 475 m of the day 1 gain is unclear. The Group has treated the gain as taxable in preparing its 2024 financial statements and intends to engage with HM Revenue & Customs (HMRC) with a view to achieving clarity of treatment prior to filing Barclays Bank UK PLC's corporation tax return for the year ended 31 December 2024. Tax law is, at times, complex, and it is the role of courts and tribunals to act as the final authority on the correct