Tax (Tables)

12 Months Ended

Dec. 31, 2024

Disclosure [Abstract]

Summary of Tax on (loss)/Profit

Tax on profit for the year

	United Kingdom									Other jurisdictions									Total
	2024 $m			2023 $m			2022 $m			2024 $m			2023 $m			2022 $m			2024 $m			2023 $m			2022 $m
Current tax
Current perioda		24			16			6			292			245			177			316			261			183
Adjustments in respect of prior periods		–			–			(2	)		–			12			(5	)		–			12			(7	)
		24			16			4			292			257			172			316			273			176
Deferred tax
Origination and reversal of temporary differences		11			1			(1	)		(56	)		(21	)		(6	)		(45	)		(20	)		(7	)
Changes in tax rates and tax laws		–			–			–			–			2			–			–			2			–
Adjustments to unprovided or unrecognised deferred taxb		–			–			(2	)		–			5			–			–			5			(2	)
Adjustments in respect of prior periods		(2	)		1			2			–			(1	)		(5	)		(2	)		–			(3	)
		9			2			(1	)		(56	)		(15	)		(11	)		(47	)		(13	)		(12	)
Income tax charge for the yearc		33			18			3			236			242			161			269			260			164

a. Includes $2m (2023: $nil, 2022: $nil) in respect of taxes arising under the Pillar Two framework.

b. Represented a reassessment of the recovery of deferred taxes in line with the Group’s profit forecasts.

c. ‘Other jurisdictions’ includes $169m (2023: $172m, 2022: $134m) in respect of US taxes.

Summary of Reconciliation of Tax Charge Including Gain on Disposal of Assets

Reconciliation of tax charge

	2024 %			2023 %			2022 %
Tax at UK blended rate		25.0			23.5			19.0
Tax credits		(0.6	)		(0.5	)		(0.1	)
System Funda		1.2			(1.3	)		3.1
Foreign exchange losses/(gains)		1.0			(1.0	)		(0.9	)
Other permanent differencesb		(0.5	)		0.9			0.5
Non-recoverable foreign taxes		2.4			1.3			3.5
Net effect of different rates of taxc		1.5			1.5			6.3
Effects of substantive enactment of UAE tax rates and lawsd		–			(0.9	)		–
Effect of changes in other tax rates and laws		–			0.2			0.1
Items on which deferred tax arose but where no deferred tax is recognisede		0.2			0.2			1.2
Effect of adjustments to unprovided or unrecognised deferred taxesf		–			0.5			(0.4	)
Adjustment to tax charge in respect of prior periodsg		(0.2	)		1.3			(1.9	)
		30.0			25.7			30.4

a. The System Fund is, in general, not subject to taxation.

b. Includes (1.0)%pts (2023: (0.6)%pts, 2022: (1.0)%pts) in respect of the US Foreign-derived intangible income regime.

c. Includes 1.2%pts (2023: 1.3%pts, 2022: 6.9%pts) driven by the relatively high blended US rate, which includes US Federal and State taxes.

d. During 2023, law implementing a new corporate income tax regime was substantively enacted in the UAE. This resulted in the recognition of a deferred tax asset of $9m in the UAE. Absent further law change, this benefit is not likely to reoccur.

e. Predominantly in respect of losses arising in the year.

f. Adjustments relating to estimated recoverable deferred tax assets. In 2023, also included 0.7%pts relating to the provision of previously unprovided deferred tax liabilities which arise on temporary differences in subsidiaries.

g. Relates to the finalisation of tax returns, activity from tax authorities such as tax audits and the reassessment of provisions for uncertain tax positions.

Summary of Tabular Form of Taxes Paid Based on Geographical Area

	2024 $m		2023 $m		2022 $m
Chinaa		11		5		10
Singaporea		7		4		1
United Kingdom		10		8		3
United States		220		171		165
Other jurisdictions		23		18		10
		271		206		189
Taxes withheld at source		38		37		22
Tax paid per cash flow		309		243		211

a. Tax payments are typically based upon the previous year’s profits.

Summary of Reconciliation of Tax Paid to Total Current Tax Charge in Income Statement

A reconciliation of tax paid to the current tax charge in the Group income statement is as follows:

	2024 $m			2023 $m			2022 $m
Current tax charge in the Group income statement		316			273			176
Current tax credit in the Group statement of comprehensive income		(3	)		(6	)		(2	)
Current tax credit taken directly to equity		(6	)		(5	)		–
Total current tax charge		307			262			174
Movements to tax contingenciesa		(4	)		(2	)		10
Timing differences of cash tax paid and foreign exchange differences		6			(17	)		27
Tax paid per cash flow		309			243			211

a. Tax contingency movements are included within the current tax charge but do not impact cash tax paid in the year. Settlements of tax contingencies are included within cash tax paid in the year but not recorded in the current year tax charge.

Summary of Deferred Tax

Deferred tax

	Property, plant, equipment and software		Application fees	Deferred gains on loan notes	c	Associates		Losses	d	Deferred compensation and employee benefitsa	Deferred revenuea,b	Research and developmenta	Intangible assets excluding software		Other short-term temporary differences	a,e	Total
	$m		$m	$m		$m		$m		$m	$m	$m	$m		$m		$m
At 1 January 2023	(53	)	41	(34	)	(59	)	79		84	–	8	(40	)	22		48
Group income statement	22		1	–		(1	)	–		4	–	7	(9	)	(11	)	13
Group statement of comprehensive income	–		–	–		–		(6	)	–	–	–	–		(5	)	(11	)
Group statement of changes in equity	–		–	–		–		–		6	–	–	–		–		6
Exchange and other adjustments	1		–	–		–		3		1	–	–	3		2		10
At 31 December 2023	(30	)	42	(34	)	(60	)	76		95	–	15	(46	)	8		66
Group income statement	21		–	–		1		(7	)	9	30	18	(14	)	(11	)	47
Group statement of comprehensive income	–		–	–		–		(3	)	–	–	–	–		(13	)	(16	)
Group statement of changes in equity	–		–	–		–		–		9	–	–	–		–		9
Exchange and other adjustments	–		–	–		–		(1	)	–	–	–	–		(1	)	(2	)
At 31 December 2024	(9	)	42	(34	)	(59	)	65		113	30	33	(60	)	(17	)	104

a. The above table has been re-presented in order to separately disclose the deferred tax on ‘Deferred revenue’ and ‘Research and development’ (both previously disclosed in ‘Other short-term temporary differences’), to aggregate deferred tax on ‘Deferred compensation’ with ‘Employee benefits’ (previously both disclosed separately), and to present deferred tax on ‘Expected credit losses on trade receivables’ within ‘Other short-term temporary differences’ (previously disclosed separately).

b. The movements in 2024 and the closing balance arise as a result of the revised agreement with the IHG Owners Association (see note 3) and deferred revenue in respect of co-branding agreements.

c. Becomes due in 2025 unless prevailing law at that time allows further deferral.

d. Wholly in respect of revenue losses.

e. Primarily in respect of contract costs, right-of-use assets, unrealised foreign exchange and expected credit losses on trade receivables, none of which has a balance exceeding $20m.

Summary of Deferred Tax Balance After Offset of Assets and Liabilities and Analysis by Key Territory

The analysis of the deferred tax balance after considering the offset of assets and liabilities within entities where there is a legal right to do so and an analysis of the deferred tax balance showing all territories with balances greater than $10m in either the current or prior year are as follows:

	2024 $m			2023 $m
Deferred tax assets		122			134
Deferred tax liabilities		(18	)		(68	)
		104			66
Analysed as:
United Arab Emirates		12			9
United Kingdom		99			113
United States		–			(53	)
Other		(7	)		(3	)
		104			66

Summary of Unrecognised Deferred Tax Position

The total unrecognised deferred tax position is as follows:

			Gross		Unrecognised deferred tax
	2024 $m		2023 $m		2024 $m		2023 $m
Revenue losses		432		450		75		79
Capital losses		580		580		146		146
		1,012		1,030		221		225
Tax credits		46		32		46		32
Othera		22		16		7		5
		1,080		1,078		274		262

a. Primarily relates to costs incurred for which tax relief has not been obtained.

Summary of Unrecognized Deferred Tax Based on Expiry Date

There is no expiry date to any of the above unrecognised assets other than for the losses and tax credits as shown in the table below:

			Gross		Unrecognised deferred tax
Expiry date	2024 $m		2023 $m		2024 $m		2023 $m
2024		–		6		–		1
2025		11		11		2		2
2026		7		7		1		1
2027		7		7		1		1
2028		–		6		–		1
2029		10		10		10		10
After 2031		36		22		36		22