Taxation (Tables)

12 Months Ended

Mar. 31, 2025



Income tax expense	2025 €m			2024 € m			2023 € m

United Kingdom corporation tax expense:

Current year		59			70			4

Adjustments in respect of prior years		(8	)		1			4

		51			71			8

Overseas current tax expense/(credit):

Current year		997			670			924

Adjustments in respect of prior years		(68	)		25			(26	)

		929			695			898

Total current tax expense		980			766			906

Deferred tax on origination and reversal of temporary differences:

United Kingdom deferred tax		(91	)		(36	)		(71	)

Overseas deferred tax		1,357			(680	)		(343	)

Total deferred tax expense/(credit)		1,266			(716	)		(414	)

Total income tax expense		2,246			50			492

Schedule of tax (credited)/charged directly to other comprehensive income



	2025 €m			2024 € m			2023 € m

Current tax		(1	)		2			3

Deferred tax		49			(579	)		305

Total tax charged/(credited) directly to other comprehensive income		48			(577	)		308

Schedule of tax charged directly to equity

Tax charged directly to equity



	2025 €m		2024 € m		2023 € m

Current tax		4		–		–

Deferred tax		3		4		7

Total tax charged directly to equity		7		4		7

Schedule of factors affecting the tax expense for the year

The table below explains the differences between the expected tax expense, being the aggregate of the Group’s geographical split of profits multiplied by the relevant local tax rates and the Group’s total tax expense for each year.



	2025 €m			2024 € m			2023 € m

Continuing (loss)/profit before tax as shown in the consolidated income statement		(1,478	)		1,620			13,074

(Loss)/profit at weighted average statutory tax rate		(729	)		363			2,787

Impairment loss with no tax effect 1		1,361			–			18

Disposal of Group investments 2		146			174			(1,718	)

Effect of taxation of associates and joint ventures, reported within (loss)/profit before tax		28			23			(125	)

Deferred tax credit following revaluation of investments in Luxembourg		–			–			(393	)

Previously unrecognised temporary differences and losses we expect to use in the future 3		–			(1,021	)		(16	)

Previously recognised temporary differences and losses we no longer expect to use in the future		25			–			–

Current year temporary differences (including losses) that we currently do not expect to use		33			84			81

Adjustments in respect of prior year tax liabilities		(108	)		89			(29	)

Impact of tax credits and irrecoverable taxes		108			147			80

Deferred tax on unremitted earnings		27			1			(6	)

Effect of current year changes in statutory tax rates on deferred tax balances 4		721			(19	)		35

Settlement of the VISPL tax cases		185			–			–

Financing costs and similar not deductible/(taxable) for tax purposes		137			214			(27	)

Revaluation of assets for tax purposes in Türkiye 5		128			(65	)		(338	)

Expenses not deductible for tax purposes		184			60			143

Income tax expense		2,246			50			492

Notes:

1.	The Group recorded impairment charges of € 4,350 million and € 165 million with respect to the Group’s investments in Germany and Romania respectively, which are permanently non-deductible for tax purposes.

The amount for 2025 includes

€

164 million of tax in relation to the 10.33% disposal of Vantage Towers, offset by a

€

(109) million credit in relation to the

non-taxable

disposal of Indus Towers reduced by

€

56 million

non-deductible

settlement of MSA obligations that resulted in the release of the secondary pledge. The amount for 2024 includes

€

110 million of tax relating to income of the continuing Group presented in Discontinued Operations,

€

37 million in relation to the disposal of

M-Pesa

Holding Company Limited and

€

30 million in relation to the Vantage Towers disposal. The amount for 2023 relates to the disposal of Vantage Towers into a joint venture and the

tax-exempt

disposals of Vodafone Hungary and Vodafone Ghana. See note 27 ‘Acquisitions and disposals’.

3.	The amount in 2024 includes € 1,019 million of additional losses recognised in Luxembourg.

4.	The amount for 2025 includes € 719 million in relation to a 1% corporate income tax rate reduction in Luxembourg.

5.	The amounts for 2025, 2024 and 2023 relate to inflation adjustments in Türkiye.

Schedule of analysis of movements in net deferred tax

The table below is an analysis of movements in the net deferred tax asset balance during the year.



	2025 €m			2024 € m

1 April		19,478			18,545

Adjustment relating to assets Held for Sale		–			(422	)

Foreign exchange movements		95			(32	)

(Charged) / credited to the income statement		(1,266	)		716

(Charged) / credited directly to OCI		(49	)		579

(Charged) / credited directly to equity		(3	)		(4	)

Indexation of the opening balance in respect of hyperinflation in Türkiye		(18	)		96

Arising on acquisitions and disposals		(2	)		–

31 March		18,235			19,478

Schedule of other information related to deferred taxes

Deferred tax assets and liabilities, before offset of balances within countries, are as follows:



	Amount credited/ (expensed) in income statement € m			Gross deferred tax asset € m		Gross deferred tax liability € m			Less amounts unrecognised € m			Net recognised deferred tax asset/ (liability) € m

Tangible assets		(6	)		2,831		(1,133	)		–			1,698

Intangible assets		133			266		(1,036	)		(3	)		(773	)

Tax losses		(1,256	)		31,367		–			(13,843	)		17,524

Treasury related items		(43	)		583		(214	)		(568	)		(199	)

Temporary differences relating to revenue recognition		(28	)		83		(789	)		–			(706	)

Temporary differences relating to leases		(28	)		1,537		(1,340	)		–			197

Other temporary differences		(38	)		716		(209	)		(13	)		494

31 March 2025		(1,266	)		37,383		(4,721	)		(14,427	)		18,235

Analysed in the balance sheet, after offset of balances within countries, as:



	€m

Deferred tax asset		19,033

Deferred tax liability		(798	)

31 March 2025		18,235

At 31 March 2024, deferred tax assets and liabilities, before offset of balances within countries, were as follows:



	Amount credited/ (expensed) in income statement € m			Gross deferred tax asset € m		Gross deferred tax liability € m			Less amounts unrecognised € m			Net recognised deferred tax asset/ (liability) € m

Tangible assets		(176	)		2,656		(1,174	)		10			1,492

Intangible assets		354			367		(1,177	)		11			(799	)

Tax losses		455			32,830		–			(14,051	)		18,779

Treasury related items		19			594		(138	)		(569	)		(113	)

Temporary differences relating to revenue recognition		(61	)		2		(677	)		–			(675	)

Temporary differences relating to leases		(16	)		1,576		(1,354	)		–			222

Other temporary differences		141			892		(306	)		(14	)		572

31 March 2024		716			38,917		(4,826	)		(14,613	)		19,478

At 31 March 2024, analysed in the balance sheet, after offset of balances within countries, as:



	€ m

Deferred tax asset		20,177

Deferred tax liability		(699	)

31 March 2024		19,478

Schedule of carry forward of losses and expiration period



31 March 2025	Expiring within 5 years € m		Expiring beyond 5 years € m		Unlimited € m		Total € m

Losses for which a deferred tax asset is recognised		68		–		78,045		78,113

Losses for which no deferred tax is recognised		98		15,982		40,403		56,483

		166		15,982		118,448		134,596



31 March 2024	Expiring within 5 years € m		Expiring beyond 5 years € m		Unlimited € m		Total € m

Losses for which a deferred tax asset is recognised		20		–		80,224		80,244

Losses for which no deferred tax is recognised		313		15,653		40,378		56,344

		333		15,653		120,602		136,588