IAS 12 para 81(g)(i)(ii), analysis of deferred tax in balance sheet and income statement charge by category

Rolls-Royce Holdings plc – Annual report – 31 December 2022

Industry: manufacturing

5 Taxation (extract 1)

5 Taxation (extract 2)

Deferred taxation assets and liabilities

1 The 2022 deferred tax relates to the disposal of ITP Aero. The 2021 deferred tax relates to the disposal of Bergen Engines AS and the Civil Nuclear Instrumentation and Control business

2 The 2021 deferred tax transferred to assets held for sale relates to ITP Aero

The analysis of the deferred tax position is as follows:

1 Other temporary differences mainly relate to the deferral of relief for interest expenses in the UK and revenue recognised earlier under local GAAP compared to IFRS in Germany