Birmingham Chamber of Commerce and Industry

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Notes to the Financial Statements

For the Year Ended 31 March 2023

9 Taxation (continued)

Factors that may affect future tax charges

The company has tax losses of £2,873,000 (2022: £2,237,000) that are available indefinitely for offset against future taxable profits on those activities from which the losses arose. Deferred tax assets have not been recognised in respect of some of these losses as some have arisen from activities that have a marginal future profitability In addition, the company has capital losses of £122,000 (2022: £122,000) which can be offset against future capital gains. Deferred tax assets have not been recognised in respect of these losses as no future capital gains are anticipated.

The rate of tax applied to the reported profit is 19.00% (2022: 19.00%).

In the Spring Budget 2021, the government announced that from 1 April 2023 the headline corporation tax rate will increase to 25%. The proposal to increase the rate to 25% had been substantively enacted at the company’s balance sheet date, therefore its effects have been included in these financial statements.

Deferred taxes at the balance sheet date have been measured using these enacted tax rates and reflected in these financial statements.

There is no expiry date on timing differences, unused tax losses or tax credits.

10 Intangible assets

Birmingham Chamber of Commerce and Industry

12. Subsidiary undertakings

The Birmingham Chamber of Commerce holds 99% of the issued share capital in the Birmingham C.O.C Pension Fund Trustee Company Limited being 99 out of 100 shares of 5p each. The company acted as the trustee of the group's staff pension scheme until 23 September 2022 and was dormant throughout the year.

13 Other investments

The Birmingham Chamber of Commerce is a member of West Midlands Chambers of Commerce LLP (WMCC) which owns a subsidiary partnership West Midlands International Trade LLP (WMIT). WMIT delivered international trade services to companies in the region under a contract with the Department of International Trade (DIT) (formerly UK Trade & Investment).

All activities and staff were transferred to an in-house DIT department on 30 June 2022. Following the transfer, all remaining balances are in the process of being transferred to the relevant members and it is the intention that WMIT will be formally closed down and struck off register of companies.

Birmingham Chamber of Commerce holds 10% of the issued share capital in One Midlands Limited, a dormant company incorporated in England and Wales.

Birmingham Chamber of Commerce and Industry

Deferred income includes membership and patron subscriptions received relating to periods after 31 March 2023. Income in advance relates to Innovate UK and other project funding.