5. Tax

The actual tax charge differs from the expected tax charge computed by applying the standard UK corporation tax rate of 19% (2017 - 19.25%), as analysed below.

	Half year ended
	30 June		30 June
	2018		2017
	£m		£m
Profit before tax	1,826		1,951


Expected tax charge	(347	)	(376	)
Losses and temporary differences in period where no deferred tax asset recognised	(8	)	(156	)
Foreign profits taxed at other rates	1		72
Items not allowed for tax
- losses on disposals and write-downs	(26	)	(59	)
- UK bank levy	(16	)	(20	)
- regulatory and legal actions	(154	)	(21	)
- other disallowable items	(34	)	(34	)
Non-taxable items	8		62
Taxable foreign exchange movements	(5	)	9
Losses brought forward and utilised	18		3
Reduction in carrying value of deferred tax in respect of UK losses	(15	)	—
Banking surcharge	(188	)	(199	)
Adjustments in respect of prior periods	25		(8	)

Actual tax charge	(741	)	(727	)

At 30 June 2018, the Group has recognised a deferred tax asset of £1,815 million (31 December 2017 - £1,740 million) and a deferred tax liability of £501 million (31 December 2017 - £583 million). These include amounts recognised in respect of UK trading losses of £665 million (31 December 2017 - £680 million). Under UK tax legislation, these UK losses can be carried forward indefinitely. The Finance Act 2016 limited the offset of the UK banking losses carried forward to 25% of taxable profits. The Group has considered the carrying value of this asset as at 30 June 2018 and concluded that it is recoverable based on future profit projections.