TAXATION (Tables)

12 Months Ended

Dec. 31, 2017

Disclosure of income tax [text block] [Abstract]

Disclosure of tax receivables and payables [text block]

	2017 £m			2016 £m			2015 £m
UK corporation tax:
Current tax on profit for the year		(1,346	)		(1,010	)		(485	)
Adjustments in respect of prior years		126			156			(90	)
		(1,220	)		(854	)		(575	)
Foreign tax:
Current tax on profit for the year		(40	)		(20	)		(24	)
Adjustments in respect of prior years		10			2			27
		(30	)		(18	)		3
Current tax expense		(1,250	)		(872	)		(572	)
Deferred tax:
Current year		(430	)		(758	)		(212	)
Adjustments in respect of prior years		(48	)		(94	)		96
Deferred tax expense		(478	)		(852	)		(116	)
Tax expense		(1,728	)		(1,724	)		(688	)

Schedule of Income Tax Charges [Text Block]

The income tax expense is made up as follows:

	2017 £m			2016 £m			2015 £m
Tax (expense) credit attributable to policyholders		(82	)		(301	)		3
Shareholder tax expense		(1,646	)		(1,423	)		(691	)
Tax expense		(1,728	)		(1,724	)		(688	)

Disclosure of reconciliation of charge resulting from applying UK corporation tax rate

An explanation of the relationship between tax expense and accounting profit is set out below:

	2017 £m			2016 £m			2015 £m
Profit before tax		5,625			3,888			1,644
UK corporation tax thereon		(1,083	)		(778	)		(333	)
Impact of surcharge on banking profits		(452	)		(266	)		–
Non-deductible costs: conduct charges		(287	)		(289	)		(459	)
Non-deductible costs: bank levy		(44	)		(40	)		(55	)
Other non-deductible costs		(59	)		(135	)		(116	)
Non-taxable income		72			75			162
Tax-exempt gains on disposals		128			19			67
Recognition of losses that arose in prior years		–			59			42
Remeasurement of deferred tax due to rate changes		(9	)		(201	)		(27	)
Differences in overseas tax rates		(15	)		10			(4	)
Policyholder tax1		(66	)		(241	)		3
Adjustments in respect of prior years		88			64			33
Tax effect of share of results of joint ventures		(1	)		(1	)		(1	)
Tax expense		(1,728	)		(1,724	)		(688	)

1 In 2016 this included a £231 million write down of the deferred tax asset held within the life business, reflecting the Group’s utilisation estimate which has been restricted by the current economic environment.