STRATEGIC REPORT
GOVERNANCE
financial statements
7 INCOME TAX continued Income tax recognised directly in equity
Year ended 31 December 2022 £m
Year ended 31 December 2021 £m
Current taxation Relief on Tier 1 interest
– – – –
(4.8) (9.6) (0.6)
Relief on cost of redeeming Tier 1 notes
Other
Total current tax
(15.0)
Deferred taxation Relief on Tier 1 interest
(3.2) (1.3) (4.5) (4.5)
– – –
Relief in respect of share-based payments
Total deferred tax
Total income tax recognised directly in equity
(15.0)
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 2022 includes profits chargeable to corporation tax arising from amortisation of transitional balances of £2.5m (2021: £2.5m). 8 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 £5.2m (2021: £3.9m). Employer contributions to pensions for Executive Directors for qualifying periods were £nil (2021: £nil). The aggregate net value of share awards granted to the Directors in the year was £2.4m (2021: £2.0m). 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 £0.9m (2021: two Directors exercised options with an aggregate gain of £0.6m).
9 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 2022 Number
Year ended 31 December 2021 Number
10
Directors
9
124 990
Senior management
123 944
Staff
Average number of staff
1,124
1,076
The aggregate personnel costs were as follows:
Year ended 31 December 2022 £m
Year ended 31 December 2021 £m
85.6 10.2
Wages and salaries Social security costs Other pension costs
82.3
9.9 4.3 5.0
4.6 5.9
Share-based payment expense
Total personnel costs
106.3
101.5
151
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