9. Tax on profit on ordinary activities
| Year ended 31 December 2003 £m |
Year ended 31 December 2002 £m |
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| a) Analysis of charge in year | |||
| Current taxation | |||
| UK corporation tax at 30% (year ended 31 December 2002: 30%) | 26 | 25 | |
| Foreign taxation | 13 | 21 | |
| Share of joint ventures’ taxation | 2 | 2 | |
| Share of associates’ taxation | 16 | 17 | |
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| Total current taxation charge for year | 57 | 65 | |
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| Deferred taxation | |||
| Origination and reversal of timing differences | (30) | 11 | |
| Share of joint ventures’ deferred taxation | 1 | – | |
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| Total deferred taxation charge for year | (29) | 11 | |
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| Total taxation charge for the year | 28 | 76 | |
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| Included in the tax on profit are the following amounts relating to exceptional items: | |||
| Operating exceptional items (deferred tax) | (27) | (14) | |
| Exceptional income from investments (current tax) | – | 13 | |
| Non-operating exceptional items (current tax) | 2 | – | |
| Exceptional interest charges (current tax) | (1) | – | |
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| Taxation credit on exceptional items | (26) | (1) | |
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| b) Reconciliation of current tax charge | |||||||
| The tax charge for the year on ordinary activities varied from the standard rate of UK corporation tax as follows: | |||||||
| 2003 | 2002 | ||||||
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| Current tax £m |
Deferred tax £m |
Total tax £m |
Current tax £m |
Deferred tax £m |
Total tax £m |
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| Corporation tax at 30% | 52 | – | 52 | 77 | – | 77 | |
| Permanent differences | 6 | – | 6 | 5 | – | 5 | |
| Origination or reversal of timing differences | 2 | (2) | – | (25) | 25 | – | |
| Tax holidays | (10) | – | (10) | (9) | – | (9) | |
| Effect of tax rate applied to overseas earnings | 6 | – | 6 | 4 | – | 4 | |
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| Tax charge for the year before exceptional items | 56 | (2) | 54 | 52 | 25 | 77 | |
| Exceptional items | 1 | (27) | (26) | 13 | (14) | (1) | |
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| Tax charge for the year | 57 | (29) | 28 | 65 | 11 | 76 | |
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