v3.25.2
Taxation (Tables)
12 Months Ended
Dec. 31, 2024
Income Taxes [Abstract]  
Summary of Taxation Charge
$ million
202420232022
Current tax:
Charge in respect of current period13,64813,06616,383
Adjustments in respect of prior periods58(422)(947)
Total13,70612,64415,436
Deferred tax:
Relating to the origination and reversal of temporary differences, tax losses and credits(491)(305)5,196
Relating to changes in tax rates and legislation112242785
Adjustments in respect of prior periods74410524
Total(305)3476,505
Total taxation charge
13,40112,99121,941
Disclosure Of Pillar Two Tax Information
Pillar Two
$ million
202420232022
Taxation charge
13,40112,99121,941
Of which:
Income tax excluding Pillar Two income tax
13,15012,99121,941
Income tax related to Pillar Two income tax
251
Summary of Reconciliation of Applicable Tax Charge at Statutory Tax Rates to Taxation Charge
Reconciliation of applicable tax charge at statutory tax rates to taxation charge
$ million
202420232022
Income before taxation
29,92232,62764,815
Less: share of profit of joint ventures and associates(2,993)(3,725)(3,972)
Income before taxation and share of profit of joint ventures and associates
26,92928,90260,843
Applicable tax charge at standard statutory tax rates
11,78211,92122,170
Adjustments in respect of prior periods132(12)(424)
Tax effects of:
Expenses not deductible for tax purposes7471,225849
Incentives for investment and development(374)(553)(1,388)
Derecognition/(recognition) of deferred tax assets255243(457)
Changes in tax rates and legislation112242785
Income not subject to tax at standard statutory rates360(213)234
Disposals(134)(113)39
Exchange rate differences(12)89(102)
Other reconciling items533162235
Taxation charge
13,40112,99121,941
Weighted average of statutory tax rates [A]44%41%36%
Effective tax rate based on income before taxation [B]45%40%34%
Effective tax rate based on income before taxation excluding share of profit of joint ventures and associates [C]50%45%36%
[A]The weighted average of statutory tax rates is calculated by dividing the applicable tax charge at standard statutory tax rates by Income before taxation and share of profit of joint ventures and associates.
[B]The effective tax rate based on income before taxation is calculated by dividing Taxation charge by Income before taxation.
[C]The effective tax rate based on income before taxation excluding share of profit of joint ventures and associates is calculated by dividing Taxation charge by Income before taxation and share of profit of joint ventures and associates.
Summary of Deferred Tax
$ million
Deferred tax assetDecommissioning
and other
provisions
Property,
plant and
equipment
Tax losses
and credits
carried forward
Retirement benefitsOtherTotal
At January 1, 20247,5771,5844,2801,7504,43219,623
Credit/(charge) to income
528254(388)7991,193
Currency translation differences(94)(7)(129)(77)(31)(338)
Other comprehensive income33(162)46(83)
Other movements(1,170)(17)(229)343(11)(1,084)
At December 31, 20246,8411,8143,5671,8545,23519,311
Deferred tax liability
At January 1, 2024(21,996)(2,880)(3,640)(28,516)
(Charge)/credit to income
(799)(138)49(888)
Currency translation differences23138668685
Other comprehensive income(2)(267)(15)(284)
Other movements
3,652(351)(257)3,044
At December 31, 2024(18,914)(3,250)(3,795)(25,959)
Net deferred tax liability at December 31, 2024(6,648)
Deferred tax asset/(liability) as presented in the balance sheet at December 31, 2024
Deferred tax asset6,857
Deferred tax liability(13,505)
2023 – Deferred tax
$ million
Deferred tax assetDecommissioning
and other
provisions
Property,
plant and
equipment
Tax losses
and credits carried forward
Retirement benefitsOtherTotal
At January 1, 20236,0494,2906,4461,9774,82723,589
(Charge)/credit to income61(680)(2,025)27557(2,060)
Currency translation differences89186628(11)190
Other comprehensive income(5)10423122
Other movements
1,378(2,044)(202)(386)(964)(2,218)
At December 31, 20237,5771,5844,2801,7504,43219,623
Deferred tax liability
At January 1, 2023(24,818)(3,189)(3,953)(31,960)
Credit/(charge) to income
2,109(228)(168)1,713
Currency translation differences(173)22754
Other comprehensive income(3)(90)(3)(96)
Other movements
8894004841,773
At December 31, 2023(21,996)(2,880)(3,640)(28,516)
Net deferred tax asset at December 31, 2023(8,893)
Deferred tax asset/(liability) as presented in the balance sheet at December 31, 2023
Deferred tax asset6,454
Deferred tax liability(15,347)
Disclosure of unrecognised temporary difference, unused tax losses and tax credits
Expected expiration of unused tax losses, unrecognised deductible temporary differences and tax credits
$ million
Expected expiration
Dec 31, 2024Dec 31, 2023
Less than 1 year
3751,496
Between 1 and 5 years
1,3181,475
5 years and later [A]
75,76871,709
Total
77,46174,680
[A]Includes unrecognised losses for Petroleum Resource Rent Tax (PRRT) in Australia which, due to the annual augmentation, increased to $49,893 million as at the end of the most recent PRRT fiscal year, June 30, 2024 (June 30, 2023: $46,220 million).