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About In House Tax

About In House Tax

This weblog is a news and views site for tax professionals within the UK and international in-house tax community.  You will find information about appointments and people moves in and around the in-house tax market, issues affecting the in-house tax professional, opinions on the state of the tax job market, updates on tax technology, and other general thoughts of the day.

Hope you find it useful.

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Location: St Albans, United Kingdom

This site has been developed by Simon Godley, who also runs the niche tax recruitment company Talentpool Selection . Simon spends a lot of his time placing tax specialists into FTSE companies, large in-bound groups and some professional services organisations. He also recruits and is well networked around the UK tax technology and VAT markets.

Tax News

Tax Victory for Morrisons

Wednesday, 3 October 2007

Source: Accountancy Age 27 Sept 2007

A big tax win has seen Morrisons slash its effective tax rate to 15%, the company has said

Morrisons declined to say what its successful tax wrangle was about, indicating only that HM Revenue & Customs had closed some enquiries going back several years, and that a ‘significant amount of corporation tax’ was recoverable.

Normally, the company would record a six-month finance charge of around £30m, but this half-year claimed a credit of £2.4m as a result of the tax boost and other changes.

The reduced corporate tax burden gifted to large UK corporates by the government in the last budget also contributed to Morrisons good fortunes, leading to a large release of deferred tax following the change in rate of UK corporation tax from 30% to 28%.

Overall, the net finance credit of £2.4m reflected the impact of a reducing pensions deficit, the one-off interest benefit on repaid corporation tax and low levels of net debt ahead of the full roll out of the group’s investment programme.

Morrisons added that the victory was a one-off and expected to see the net finance cost returning to normal levels in the second half of the financial year.

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posted by Simon Godley


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