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Finance income and costs (Tables)
 12 Months Ended
Mar. 31, 2020
Analysis of income and expense [abstract]  
Schedule of finance income and costs
 
 
 
2020

2019

2018

 
Notes
 
£m

£m

£m

Finance income
 
 
 
 
 
Interest income on financial instruments:
 
 
 
 
 
Bank deposits and other financial assets
 
 
48

54

54

Dividends received on equities held at fair value through other comprehensive income
 
 
2

2

—

Gains on disposal of available-for-sale investments
 
 
—

—

73

Other income
 
 
20

17

—

 
 
 
70

73

127

Finance costs
 
 
 
 
 
Net interest on pensions and other post-retirement benefit obligations
25
 
(23
)
(22
)
(65
)
Interest expense on financial liabilities held at amortised cost:
 
 
 
 
 
Bank loans and overdrafts
 
 
(73
)
(72
)
(87
)
Other borrowings¹
 
 
(997
)
(970
)
(1,030
)
Interest expense on financial liabilities held at fair value through profit and loss
 
 
(22
)
(20
)
—

Derivatives
 
 
(39
)
(43
)
12

Unwinding of discount on provisions
26
 
(77
)
(74
)
(75
)
Other interest
 
 
(10
)
—

(11
)
Less: interest capitalised²
 
 
122

135

128

 
 
 
(1,119
)
(1,066
)
(1,128
)
Remeasurements – Finance income
 
 
 
 
 
Net (losses)/gains on financial assets held at fair value through profit and loss
 
 
(16
)
15

—

 
 
 
(16
)
15

—

Remeasurements – Finance costs
 
 





Net losses on financial liabilities held at fair value through profit and loss
 
 
(49
)
(51
)
—

Net (losses)/gains on financing derivatives³:
 
 
 
 
 
Derivatives designated as hedges for hedge accounting
 
 
(13
)
(37
)
49

Derivatives not designated as hedges for hedge accounting
 
 
14

(3
)
70

 
 
 
(48
)
(91
)
119

Total remeasurements – Finance income and costs
 
 
(64
)
(76
)
119

 
 
 
 
 
 
Finance income
 
 
54

88

127

Finance costs
 
 
(1,167
)
(1,157
)
(1,009
)
 
 
 





Net finance costs from continuing operations
 
 
(1,113
)
(1,069
)
(882
)
1.
Includes interest expense on lease liabilities (see note 13 for details).
2.
Interest on funding attributable to assets in the course of construction in the current year was capitalised at a rate of 3.6% (2019: 3.9%; 2018: 4.1%). In the UK, capitalised interest qualifies for a current year tax deduction with tax relief claimed of £15 million (2019: £19 million; 2018: £20 million). In the US, capitalised interest is added to the cost of plant and qualifies for tax depreciation allowances.
3.
Includes a net foreign exchange gain on financing activities of £66 million (2019: £264 million gain; 2018: £314 million loss) offset by foreign exchange losses and gains on financing derivatives measured at fair value.