BT Group plc – Annual report – 31 March 2021
10. Taxation (extract)
What factors affect our future tax charges?
The Chancellor’s Budget on 3 March 2021 announced a UK corporation tax rate increase from 19% to 25%, effective from 1 April 2023. As this rate change was not substantively enacted as at 31 March 2021, deferred tax assets and liabilities in these financial statements continue to be measured at 19%, the enacted rate at which they are expected to reverse. In the event that the rate change is enacted, BT Group estimates that the impact of revaluing existing deferred tax assets and liabilities will be a £0.4bn income statement charge and a £0.3bn credit to other comprehensive income, if the rate change is theoretically applied to the deferred tax balances at 31 March 2021.