Just Annual Report and Accounts 2021

FINANCIAL STATEMENTS

STRATEGIC REPORT

GOVERNANCE

6 SEGMENTAL REPORTING continued Drawdown and Lifetime Mortgage (“LTM”) products are accounted for as investment contracts and financial investments respectively in the statement of financial position. An analysis of the amounts advanced during the year for these products is shown below: Year ended 31 December 2021 £m Year ended 31 December 2020 £m LTM loans advanced 528.2 511.7 Drawdown deposits and other investment products 1.1 1.0

Reconciliation of gross premiums written to Retirement Income sales

Year ended 31 December 2021 £m

Year ended 31 December 2020 £m

2,676.1

Gross premiums written

2,147.8

(2.2)

Protection sales not included in Retirement Income sales

(2.5)

Retirement Income sales

2,673.9

2,145.3

Disaggregation of fee and commission income

Year ended 31 December 2021

Year ended 31 December 2020

Insurance £m

Other £m

Total £m

Insurance £m

Other £m

Total £m

Product/service GIfL commission

– –

6.1 2.0 3.6

6.1 2.0 7.5

– –

4.5 2.1 2.8 9.4 9.0 0.4 9.4

4.5 2.1 5.1

LTM commission and advice fees

3.9 3.9

Other

2.3 2.3

11.7

15.6

11.7

Timing of revenue recognition Products transferred at point in time Products and services transferred over time Revenue from contracts with customers

3.9

11.4

15.3

2.3

11.3

0.3

0.3

0.4

3.9

11.7

15.6

2.3

11.7

All revenue from contracts with customers is from the UK.

7 INCOME TAX

Year ended 31 December 2021 £m

Year ended 31 December 2020 £m

Current taxation Current year

0.8

46.6

(0.4)

Adjustments in respect of prior periods

1.0

Total current tax

0.4

47.6

Deferred taxation Origination and reversal of temporary differences

(5.7)

(4.0) (0.9)

Adjustments in respect of prior periods

(0.3) (6.0) (5.6)

Rate change

1.5

Total deferred tax

(3.4)

Total income tax recognised in profit or loss

44.2

On 3 March 2021, the government announced an increase in the rate of corporation tax rate to 25% from 1 April 2023. The change in rate was substantively enacted on 24 May 2021, and the impact of the rate change is that the net deferred tax balances carried forward increased by £0.3m.

The deferred tax assets and liabilities at 31 December 2021 have been calculated based on the rate at which they are expected to reverse.

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