Financial Statements Notes to the consolidated financial statements continued for the year ended 31 March 2021
9. Tax The charge for the year is:
2021 £000
2020 £000
– – –
Tax expense in year
–
Tax adjustment to provision for prior year
(124)
Total tax charge/(credit) (124) A reconciliation of the tax charge applicable to the results at the statutory tax rate to the charge for the year is as follows: 2021 £000 2020 £000
33,801
Profit before taxation
22,384
6,422
Expected tax charge on ordinary activities at the standard rate of taxation of 19% (2020: 19%)
4,253
Less: UK REIT exemption on net income Revaluation movement not taxable Gains on disposal not taxable
(3,813) (2,444) (165)
(3,760)
168 (661)
Total tax charge – As a UK REIT, the income profits of the Group’s UK property rental business are exempt from corporation tax, as are any gains it makes from the disposal of its properties, provided they are not held for trading. The Group is otherwise subject to UK corporation tax at the prevailing rate. – As the principal company of the REIT, the Company is required to distribute at least 90% of the income profits of the Group’s UK property rental business. There are a number of other conditions that are also required to be met by the Company and the Group to maintain REIT tax status. These conditions were met in the year and the Board intends to conduct the Group’s affairs such that these conditions continue to be met for the foreseeable future. Accordingly, deferred tax is no longer recognised on temporary differences relating to the property rental business. The Group is exempt from Guernsey taxation under the Income Tax (Exempt Bodies) (Guernsey) Ordinance, 1989. 10. Dividends 2021 £000 2020 £000
Declared and paid: Interim dividend for the period ended 31 March 2019: 0.875 pence Interim dividend for the period ended 30 June 2019: 0.875 pence Interim dividend for the period ended 30 September 2019: 0.875 pence Interim dividend for the period ended 31 December 2019: 0.875 pence Interim dividend for the period ended 31 March 2020: 0.625 pence Interim dividend for the period ended 30 June 2020: 0.625 pence Interim dividend for the period ended 30 September 2020: 0.7 pence Interim dividend for the period ended 31 December 2020: 0.8 pence
– – – –
4,712 4,781 4,773 4,773
3,409 3,410 3,819 4,364
– – – –
15,002 19,039 The interim dividend of 0.8 pence per ordinary share in respect of the period ended 31 March 2021 has not been recognised as a liability as it was declared after the year end. This dividend of £4,364,000 will be paid on 28 May 2021. 11. Earnings per share Basic and diluted earnings per share is calculated by dividing the net profit for the year attributable to ordinary shareholders of the Company by the weighted average number of ordinary shares in issue during the year, excluding the average number of shares held by the Employee Benefit Trust for the year. The diluted number of shares also reflects the contingent shares to be issued under the Long-term Incentive Plan. The following reflects the profit and share data used in the basic and diluted profit per share calculation: 2021 2020 Net profit attributable to ordinary shareholders of the Company from continuing operations (£000) 33,801 22,508 Weighted average number of ordinary shares for basic profit per share 545,590,722 544,192,866 Weighted average number of ordinary shares for diluted profit per share 546,793,381 546,227,914
116
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