Taxation (Tables)

12 Months Ended

Mar. 31, 2026



Income tax expense	2026 €m			2025 € m			2024 € m

United Kingdom corporation tax expense:

Current year		39			59			70

Adjustments in respect of prior years		6			(8	)		1

		45			51			71

Overseas current tax expense/(credit):

Current year		930			997			670

Adjustments in respect of prior years		(4	)		(68	)		25

		926			929			695

Total current tax expense		971			980			766

Deferred tax on origination and reversal of temporary differences:

United Kingdom deferred tax		280			(91	)		(36	)

Overseas deferred tax		554			1,357			(680	)

Total deferred tax expense/(credit)		834			1,266			(716	)

Total income tax expense		1,805			2,246			50

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

Tax charged/(credited) directly to other comprehensive income



	2026 €m		2025 € m		2024 € m

Current tax		19		(1)		2

Deferred tax 1		393		49		(579	)

Total tax charged/(credited) directly to other comprehensive income		412		48		(577	)

Note:

1.	The amount in 2026 primarily derives from gains on our investment in AST SpaceMobile, Inc and on cashflow hedges.

Schedule of tax charged directly to equity

Tax charged directly to equity



	2026 €m		2025 € m		2024 € m

Current tax		5		4		–

Deferred tax		(17)		3		4

Total tax charged directly to equity		(12)		7		4

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.



	2026 €m			2025 € m			2024 € m

Continuing profit/(loss) before tax as shown in the consolidated income statement		1,864			(1,478	)		1,620

Profit/(loss) at weighted average statutory tax rate		439			(729	)		363

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

Disposal of Group investments 2		85			146			174

Effect of taxation of associates and joint ventures, reported within (loss)/profit before tax		105			28			23

Previously unrecognised temporary differences and losses expected to be used in the future 3		–			–			(1,021	)

Previously recognised temporary differences and losses no longer expected to be used in the future 4		358			25			–

Current year temporary differences (including losses) that are not expected to be used		60			33			84

Adjustments in respect of prior year tax liabilities		37			(108	)		89

Impact of tax credits and irrecoverable taxes		97			108			147

Deferred tax on unremitted earnings and outside basis		(40	)		27			1

Effect of current year changes in statutory tax rates on deferred tax balances 5		305			721			(19	)

Settlement of the VISPL tax cases		–			185			–

Financing costs and similar not deductible for tax purposes		105			137			214

Revaluation of assets for tax purposes in Türkiye 6		87			128			(65	)

Expenses not deductible for tax purposes		167			184			60

Income tax expense		1,805			2,246			50

Notes:

1.	The amount in 2025 includes 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 2026 includes

€

38 million of tax in relation to the

€

256 million

non-deductible

liability to settle the CLAM (See Note 29 – Contingent Liabilities). 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 in relation 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.

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

4.	The amount in 2026 relates to the € 358 million write-down of deferred tax assets in the Group UK tax group, reflecting an update to the Group’s assessment of the recoverability of those assets (see Deferred tax note below).

5.	The amount for 2026 includes € 305 million in relation to the phased corporate income tax rate reduction from 2027 to 2032 in Germany. The amount for 2025 includes € 719 million in relation to a 1% corporate income tax rate reduction in Luxembourg.

6.	The amounts for 2026, 2025 and 2024 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.



	2026 €m			2025 € m

1 April		18,235			19,478

Foreign exchange movements		(82	)		95

Charged to the income statement		(834	)		(1,266	)

Charged directly to OCI		(393	)		(49	)

Credited / (charged) directly to equity		17			(3	)

Indexation of the opening balance in respect of hyperinflation in Türkiye		(9	)		(18	)

Arising on acquisitions and disposals		91			(2	)

31 March		17,025			18,235

Schedule of other information related to deferred taxes



	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		20			3,574		(1,419	)		(408	)		1,747

Intangible assets		(655	)		457		(1,097	)		–			(640	)

Tax losses		(137	)		30,081		–			(13,302	)		16,779

Treasury related items		27			525		(575	)		(510	)		(560	)

Temporary differences relating to revenue recognition		116			74		(664	)		–			(590	)

Temporary differences relating to leases		10			1,678		(1,473	)		–			205

Other temporary differences		(215	)		589		(505	)		–			84

31 March 2026		(834	)		36,978		(5,733	)		(14,220	)		17,025

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



	€m

Deferred tax asset		18,068

Deferred tax liability		(1,043	)

31 March 2026		17,025

At 31 March 2025, deferred tax assets and liabilities, before offset of balances within countries, were as follows:


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

At 31 March 2025, 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

Schedule of carry forward of losses and expiration period

	$		$		$		$

31 March 2026	Expiring within 5 years € m		Expiring beyond 5 years € m		Unlimited € m		Total € m

Losses for which a deferred tax asset is recognised		96		–		75,950		76,046

Losses for which no deferred tax is recognised		104		16,010		37,885		53,999

		200		16,010		113,835		130,045

	$		$		$		$

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