TAX EXPENSE (Tables)

12 Months Ended

Dec. 31, 2019

Disclosure of income tax [text block] [Abstract]

Disclosure of tax receivables and payables [text block]

	2019		20181		20171
	£m		£m		£m
UK corporation tax:
Current tax on profit for the year	(1,389	)	(1,280	)	(1,240	)
Adjustments in respect of prior years	96		11		122
	(1,293	)	(1,269	)	(1,118	)
Foreign tax:
Current tax on profit for the year	(70	)	(34	)	(40	)
Adjustments in respect of prior years	2		5		10
	(68	)	(29	)	(30	)
Current tax expense	(1,361	)	(1,298	)	(1,148	)
Deferred tax:
Current year	(165	)	(127	)	(430	)
Adjustments in respect of prior years	139		(29	)	(48	)
Deferred tax expense	(26	)	(156	)	(478	)
Tax expense	(1,387	)	(1,454	)	(1,626	)

1 Restated, see note 1.

Disclosure of Income Tax Charges [Text Block]

The income tax expense is made up as follows:

	2019		20181		20171
	£m		£m		£m
Tax (expense) credit attributable to policyholders	(148	)	14		(82	)
Shareholder tax expense	(1,239	)	(1,468	)	(1,544	)
Tax expense	(1,387	)	(1,454	)	(1,626	)

1 Restated, see note 1.

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:

	2019		20181		20171
	£m		£m		£m
Profit before tax	4,393		5,960		5,625
UK corporation tax thereon	(835	)	(1,132	)	(1,083	)
Impact of surcharge on banking profits	(364	)	(409	)	(429	)
Non-deductible costs: conduct charges	(370	)	(101	)	(287	)
Non-deductible costs: bank levy	(43	)	(43	)	(44	)
Other non-deductible costs	(121	)	(90	)	(59	)
Non-taxable income	40		87		72
Tax relief on coupons on other equity instruments	89		83		79
Tax-exempt gains on disposals	102		124		128
Recognition (derecognition) of losses that arose in prior years	18		(9	)	–
Remeasurement of deferred tax due to rate changes	(6	)	32		(9	)
Differences in overseas tax rates	(14	)	6		(15	)
Policyholder tax	(67	)	(62	)	(66	)
Policyholder deferred tax asset in respect of life assurance expenses	(53	)	73		–
Adjustments in respect of prior years	237		(13	)	88
Tax effect of share of results of joint ventures	–		–		(1	)
Tax expense	(1,387	)	(1,454	)	(1,626	)

1 Restated, see note 1.