FFIINANNANCCIALIAL S STTAATTEEMMEENNTTSS NOTES TO THE FINANCIAL STATEMENTS CONTINUED S 9 TAXATION CONTINUED TR (a) Reconciliation of the total income tax (credit)/charge A The tax credit (2022: charge) in the Consolidated Statement of Comprehensive Income for the year is lower (2022: higher) than the standard rate of TE G I corporation tax in the UK of 23.5% (2022: 19%). The differences are reconciled below: C R 2023 2022 E £m £m P O Loss from operations before taxation (239.8) (495.0) R Loss from operations before taxation multiplied by standard rate of corporation tax in the UK of 23.5% (2022: 19.0%) (56.3) (94.0) T Difference to total income tax (credit)/charge due to effects of: G Expenses not deductible for tax purposes 1.2 2.0 O Movement in unprovided deferred tax 43.4 100.3 VE R Derecognition of deferred tax assets – 25.6 NAN Irrecoverable overseas withholding taxes – 0.8 C Adjustments in respect of prior periods 0.1 (4.3) E Difference in UK tax rates (0.7) 1.1 Difference in overseas tax rates 0.2 1.2 F I Other (0.9) – NAN Total income tax (credit)/charge (13.0) 32.7 C IAL S (b) Tax paid T A Total net tax paid during the year was £5.6m (2022: £6.8m). T E M (c) Factors affecting future tax charges E N The UK’s main rate of corporation tax increased from 19% to 25%, effective from 1 April 2023. T S Pillar Two legislation has been enacted or substantively enacted in certain jurisdictions in which the Group operates. The legislation will be effective for the Group's financial year beginning 1 January 2024. The Group has performed an assessment of the Group's potential exposure to Pillar Two income taxes. F The assessment of the potential exposure to Pillar Two income taxes is based on the most recent tax filings, country-by-country reporting and financial U R statements for the constituent entities in the Group. Based on the assessment, the Pillar Two Transitional Safe Harbour provisions are expected to apply in T H each jurisdiction the Group operates in, and management is not aware of any circumstance under which this might change. Therefore, the Group does not E R expect a potential exposure to Pillar Two top-up taxes. The Group has applied the exception in IAS 12 ’Income Taxes’ to recognising and disclosing INF information about deferred tax assets and liabilities related to Pillar Two income taxes. OR (d) Deferred tax M A Recognised deferred tax assets and liabilities. T I Deferred tax assets and liabilities are attributable to the following: ON Assets Assets Liabilities Liabilities 2023 2022 2023 2022 £m £m £m £m Property, plant and equipment (108.5) (76.2) – – Intangible assets – – 182.9 181.3 Employee benefits (12.7) (15.5) – – Provisions (10.4) (8.4) – – 1 RDEC credit (23.5) (16.1) – – 2 RDEC deferred income (13.8) – – 3 Losses and other deductions (168.3) (198.6) – – Share-based payments (2.0) (0.2) – – Other – – – 0.7 Deferred tax (assets)/liabilities (339.2) (315.0) 182.9 182.0 Offset of tax liabilities/(assets) 182.9 181.3 (182.9) (181.3) Total deferred tax (assets)/liabilities (156.3) (133.7) – 0.7 1 Deferred tax assets categorised as ‘RDEC credit’ relate to the cumulative restricted amount of the payable tax credits which can be applied or surrendered in discharging any future corporation tax liability of the claimant company, as detailed in the Government Grants section of the Accounting Policies (Note 2). 2 Deferred tax assets categorised as ‘RDEC deferred income’ relate to expenditure deferred to the Consolidated Statement of Financial position which has previously been included within filed RDEC claims and subject to corporation tax. Any future release of the RDEC deferred income to the Consolidated Income Statement will not be subject to corporation tax for a second time. 3 Deferred tax assets categorised as ‘Losses and other deductions’ relate to tax losses and tax interest amounts disallowed under the corporate interest restriction legislation. ASTON MARTIN LAGONDA ANNUAL REPORT AND ACCOUNTS 2023 162