170 | Just Group PLC | Annual Report and Accounts 2023
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS continued
10. INCOME TAX continued Reconciliation of total income tax to the applicable tax rate
Year ended 31 December 2022 (restated) £m
Year ended 31 December 2023 £m
172
Profit/(loss) on ordinary activities before tax
(494)
40
Income tax at 23.5% (2022: 19%)
(94)
Effects of: Expenses not deductible for tax purposes
2 2 – 3
2 1
Remeasurement of deferred tax – change in UK tax rate
Impact of future tax rate on tax losses Adjustments in respect of prior periods
(34)
–
(4)
Other
(7)
Total income tax recognised in profit or loss
43
(132)
Income tax recognised directly in equity
Year ended 31 December 2023 £m
Year ended 31 December 2022 £m
Current taxation Relief on Tier 1 interest
(4) (4)
– –
Total current tax
Deferred taxation Relief on Tier 1 interest
– – –
(3) (1) (4) (4)
Relief in respect of share-based payments
Total deferred tax
Total income tax recognised directly in equity
(4)
Taxation of life insurance companies was fundamentally changed following the publication of the Finance Act 2012. Since 1 January 2013, life insurance tax has been based on financial statements; prior to this date, the basis for profits chargeable to corporation tax was surplus arising within the Pillar 1 regulatory regime. Cumulative differences arising between the two bases, which represent the differences in retained profits and taxable surplus which are not excluded items for taxation, are brought back into the computation of taxable profits. However, the legislation provides for transitional arrangements whereby such differences are amortised on a straight-line basis over a ten-year period from 1 January 2013. Similarly, the resulting cumulative transitional adjustments for tax purposes in adoption of IFRS are amortised on a straight-line basis over a ten-year period from 1 January 2016. The tax charge for the year to 31 December 2023 includes tax relief arising from amortisation of transitional balances of £3m (2022: £3m). IFRS 17 Insurance Contracts was adopted during the year. Cumulative differences arising between IFRS 17 and the previous accounting standards (IFRS 4), which represent the differences in retained profits previously reported and impact of the adoption of the standard, are brought back into the computation of taxable profits. However, legislation provides for transitional arrangements whereby such differences are amortised on a straight-line basis over a ten-year period from 1 January 2023. The tax charge for the year to 31 December 2023 includes current tax relief arising from amortisation of transitional balances of £32m. 11. REMUNERATION OF DIRECTORS Information concerning individual Directors’ emoluments, interests and transactions is given in the Directors’ Remuneration report. For the purposes of the disclosure required by Schedule 5 to the Companies Act 2006, the total aggregate emoluments of the Directors in the year was £5m (2022: £5m). Employer contributions to pensions for Executive Directors for qualifying periods were £nil (2022: nil). The aggregate net value of share awards granted to the Directors in the year was £3m (2022: £2m), calculated by reference to the average closing middle-market price of an ordinary share over the five days preceding the grant. Two Directors exercised share options during the year with an aggregate gain of £3m (2022: two Directors exercised options with an aggregate gain of £1m).
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