IAS 23 para 26, disclosure of interest capitalised and UK LR 9.8.4R tax relief thereon

United Utilities Group PLC – Annual report – 31 March 2022

Industry: utilities

Directors’ report (extract)

Statutory and other information (extract)

Information required by UK Listing Rule 9.8.4

Details of the amount of interest capitalised by the group during the financial year can be found in note 6 to the financial statements on page 223. In line with current UK tax legislation, the amount is fully deductible against the group’s corporation tax liability, resulting in tax relief of £5.8 million.

There are no other disclosures to be made under Listing Rule 9.8.4.

6 Finance expense (extract)

Interest payable is stated net of £52.7 million (2021: £30.4 million) borrowing costs capitalised in the cost of qualifying assets within property, plant and equipment and intangible assets during the year. This has been calculated by applying an average capitalisation rate of 4.2 per cent (2021: 2.3 per cent) to expenditure on such assets as prescribed by IAS 23 ‘Borrowing Costs’.