7. Taxation (continued)

(c) Factors affecting tax charge for the year

The tax charge for the current year is higher than (2021 – higher than) the current standard rate of corporation tax in the UK of 19% (2021 – 19%). The difference is explained as follows:

(d) Deferred tax

The deferred tax included in the statement of financial position is as follows:

The liability/(asset) for deferred tax comprises the following:

The Group expects no deferred tax liabilities to reverse in 2023.

Taxation (continued)

(e) Factors that may affect future tax charges

The UK corporation tax rate for the whole of 2022 was 19%. Accordingly, the Group’s result for the accounting period is taxed at an effective rate of 19% (2021 – 19%).

The corporation tax rate is due to increase to 25% from April 2023. At the balance sheet date, the setting of the rate of 25% from April 2023 had been substantially enacted and hence in accordance with accounting standards, the impact of the rate of 25% has been reflected in the Group’s financial statements at 31 December 2022.

Any future rate changes will also impact the amount of future tax payments to be made by the Group.

8. Dividends

9. Retained profit/(loss) for the year

The profit/(loss) for the year has been retained by:

The parent company’s profit before dividends for the financial year was £102,340,000 (2021 – £62,880,000 – as restated).

Prior period adjustment (company)

The company has identified the need to make a correction to the 2021 company statement of changes in equity and the 2021 company statement of financial position due to an error identified in the recognition of dividends received from subsidiary undertakings. The adjustment relates to the restatement of the profit and loss account at 1 January 2021 of £63,112,000 and a reduction in profit for the year ended 31 December 2021 of £30,452,000.

10. Earnings/(loss) per share

The calculation of earnings/(loss) per ordinary share for 2022 is based on the earnings/(deficit) attributable to ordinary shareholders of £261,187,000 (2021 – deficit of £114,825,000) and on 120,000,000 ordinary shares (2021 –120,000,000 ordinary shares) being the effective number of such shares in issue during the year. This calculation relates to both the basic and diluted loss per share as there is no potential future shares or share options in the company

11. Tangible fixed assets

The valuation of the Group’s freehold properties at 31 December 2022 was carried out by CBRE and Knight Frank (commercial properties) and Cluttons (residential properties), the firms are independent and regulated by the Royal Institution of Chartered Surveyors (“RICS”), on the basis of fair value, in accordance with the version of the RICS Valuation – Global Standards (incorporating the International Valuation Standards) and the UK supplement (“The Red Book”) as at the Valuation Date. The key assumptions used to determine the fair value of investment property are set out below.

11. Tangible fixed assets (continued)

The historical cost of freehold properties at 31 December 2022 was £2,294,604,000 (2021 – £2,223,991,000).