162 | Just Group PLC | Annual Report and Accounts 2024
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS continued
5. OTHER FINANCE COSTS
Year ended 31 December 2024 £m
Year ended 31 December 2023 £m
Interest on subordinated debt Interest on repurchase agreements Interest on collateral received and other
50
49 70
146
39
3 –
Tender premium on redemption of Tier 2 subordinated debt
6
Total
241
122
The amortised cost Gilt portfolio is funded by repurchase agreements; as this portfolio continues to grow, the Group incurs additional interest on repurchase agreements.
6. INCOME TAX
Year ended 31 December 2024 £m
Year ended 31 December 2023 £m
Current taxation Current year tax on current year profits Adjustments in respect of prior periods Effect of tax losses carried back on current tax
4 6
– – – –
(1)
Total current tax
9
Deferred taxation Deferred tax recognised for losses in the current period Origination and reversal of temporary differences Adjustments in respect of prior periods Effect of tax losses carried back on current tax
(13)
(2)
2 – 1
6 3 –
Tax relief on the transitional adjustment on IFRS 17 implementation
34
34
Remeasurement of deferred tax – change in UK tax rate
–
2
Total deferred tax
24
43
Total income tax recognised in profit or loss
33
43
The deferred tax assets and liabilities have been calculated at 25% (2023: 25%), the current corporation tax rate, and the rate at which they are expected to reverse. The Group has assessed that the deferred tax balances will be fully recoverable based on the Group’s five-year business plan and projection thereafter. In accordance with Paragraph 4A of IAS 12 “Income taxes”, the Group has not recognised nor disclosed information about deferred tax assets and liabilities related to Pillar Two income taxes. The Group does not currently expect the effect of the Pillar Two legislation to have
a material impact on the tax position in future periods. Reconciliation of total income tax to the applicable tax rate
Year ended 31 December 2024 £m
Year ended 31 December 2023 £m
Profit on ordinary activities before tax Income tax at 25% (2023: 23.5%) Effects of: Expenses not deductible for tax purposes
113
172
28
40
– – 6
2 2 3
Remeasurement of deferred tax – change in UK tax rate
Adjustments in respect of prior periods
Other
(1)
(4)
Total income tax recognised in profit or loss
33
43
Powered by FlippingBook