Travis Perkins plc – Annual report – 31 December 2019
16. Deferred tax (extract)
The Group’s deferred tax provision is measured at a rate of 17%, which is the current enacted statutory corporation tax rate for 2020 onwards (rate reducing from 19% to 17% in April 2020). However, the UK Government has indicated that the reduction in rate planned for April 2020 will not now go ahead and should this become formal policy, the Group’s current deferred tax provision would increase to £70m. If the rate change to 19% does become substantively enacted then an increase in provision of £7.4m to that shown above will be reflected as an opening balance rate change adjustment in the Group’s 2020 Annual Report and Accounts.