124 JUST GROUP PLC Annual Report and Accounts 2020
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS continued
8 INCOME TAX continued 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, 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 will be amortised on a straight-line basis over a ten year period from 1 January 2016. The tax charge for the year to 31 December 2020 includes profits chargeable to corporation tax arising from amortisation of transitional balances of £2.5m (2019: £2.5m). Tax balances included within these financial statements include the use of estimates and assumptions which are based on management’s best knowledge of current circumstances and future events and actions. This includes the determination of tax liabilities and recoverables for uncertain tax positions. The actual outcome may differ from the estimated position. 9 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 £3.6m (2019: £2.7m). Employer contributions to pensions for Executive Directors for qualifying periods were £nil (2019: £nil). The aggregate net value of share awards granted to the Directors in the year was £2.2m (2019: £1.1m). The net value has been calculated by reference to the closing middle-market price of an ordinary share at the date of grant. Two Directors exercised share options during the year with an aggregate gain of £0.3m (2019: two Directors exercised options with an aggregate gain of £0.3m).
10 STAFF NUMBERS AND COSTS The average number of persons employed by the Group (including Directors) during the financial year, analysed by category, was as follows:
Year ended 31 December 2020 Number
Year ended 31 December 2019 Number
9
Directors
7
119 949
Senior management
118 955
Staff
Average number of staff
1,077
1,080
The aggregate personnel costs were as follows:
Year ended 31 December 2020 £m
Year ended 31 December 2019 £m
87.2
Wages and salaries Social security costs Other pension costs
89.7
9.2 4.3 6.8
8.9 4.2 5.2
Share-based payment expense
Total personnel costs
107.5
108.0
The Company does not have any employees.
11 EMPLOYEE BENEFITS Defined contribution pension scheme The Group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable to the fund and amounted to £4.3m (2019: £4.2m). Employee share plans The Group operates a number of employee share option and share award plans. Details of those plans are as follows: Share options Just Retirement Group plc 2013 Long Term Incentive Plan (“LTIP”) The Group has made awards under the LTIP to Executive Directors and other senior managers. Awards are made in the form of nil-cost options which become exercisable on the third anniversary of the grant date, subject to the satisfaction of service and performance conditions set out in the Directors’ Remuneration Report. Options are exercisable until the tenth anniversary of the grant date. Options granted since 2018 are subject to a two year holding period after the options have been exercised.
The options are accounted for as equity-settled schemes.
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