v3.26.1
Tax (Tables)
 12 Months Ended
Mar. 31, 2026
Income taxes paid (refund) [abstract]  
Schedule of tax charged to the consolidated income statement for continuing operations and components of tax expense The tax charge for the year can be analysed as follows:
2026
2025
2024
£m
£m
£m
Current tax:
UK corporation tax at 25% (2025: 25%; 2024: 25%)
9
66
410
UK corporation tax adjustment in respect of prior years
(4)
(36)
(36)
5
30
374
Overseas corporation tax
9
47
82
Overseas corporation tax adjustment in respect of prior years
(168)
(39)
(90)
(159)
8
(8)
Total current tax from continuing operations
(154)
38
366
Deferred tax:
UK deferred tax
642
524
388
UK deferred tax adjustment in respect of prior years
(7)
25
43
635
549
431
Overseas deferred tax
289
195
(40)
Overseas deferred tax adjustment in respect of prior years
169
39
74
458
234
34
Total deferred tax from continuing operations
1,093
783
465
Total tax charge from continuing operations
939
821
831
Disclosure of tax (credited)/charged to the consolidated statement of comprehensive income and equity Tax charged/(credited) to the consolidated statement of comprehensive income and equity
2026
2025
2024
£m
£m
£m
Current tax:
Share-based payments
(1)
(1)
(2)
Deferred tax:
Investments at fair value through other comprehensive income
—
—
1
Cash flow hedges, cost of hedging and own credit reserve
(16)
36
56
Remeasurements of pension assets and post-retirement
benefit obligations
39
(23)
(50)
Share-based payments
(9)
2
—
13
14
5
Total tax recognised in the statements of comprehensive income
from continuing operations
23
13
7
Total tax relating to share-based payments recognised directly
in equity from continuing operations
(10)
1
(2)
13
14
5
Schedule of effective tax rate reconciliation The tax charge for the year for continuing operations, is lower (2025: lower tax charge; 2024: higher tax charge) than at the standard rate of corporation tax in the UK of 25% (2025: 25%; 2024: 25%):
2026
2025
2024
£m
£m
£m
Profit before tax from continuing operations
4,182
3,650
3,048
Profit before tax from continuing operations multiplied by UK corporation tax rate of 25% (2025: 25%; 2024: 25%)
1,046
913
762
Effect of:
Adjustments in respect of prior years1
(10)
(11)
(9)
Expenses not deductible for tax purposes
58
40
155
Non-taxable income2
(150)
(107)
(43)
Adjustment in respect of foreign tax rates
14
4
(20)
Deferred tax impact of change in UK tax rate
—
—
—
Adjustment in respect of post-tax profits of joint ventures and associates included within profit before tax
(19)
(18)
(9)
Other3
—
—
(5)
Total tax charge from continuing operations
939
821
831
%
%
%
Effective tax rate – continuing operations
22.5
22.5
27.3
1.The prior year adjustments are primarily due to agreement of prior period tax returns.
2.Includes tax on chargeable disposals after the offset of capital losses. The gains on disposal of Grain LNG in the current year and the ESO in the prior year were both subject to the Substantial Shareholding Exemption.
3.Other primarily comprises the movement in the deferred tax asset on previously unrecognised capital losses, claims for land remediation relief and claims for Research & Development credit.
Schedule of tax included within the statement of financial position and deferred tax assets not recognised The following are the major deferred tax assets and liabilities recognised, and the movements thereon,
during the current and prior reporting periods:
Regulatory
licences
£m
Accelerated
tax
depreciation
£m
Share-
based
payments
£m
Pensions
and other
post-
retirement
benefits
£m
Financial
instruments
£m
Other net
temporary
differences1
£m
Total
£m
Deferred tax liabilities/
(assets)
At 1 April 2024
429
8,816
(25)
461
(275)
(1,887)
7,519
Exchange adjustments
and other2
—
(147)
—
(5)
—
57
(95)
Charged/(credited) to
income statement
—
925
(3)
58
62
(256)
786
(Credited)/charged to
other comprehensive
income and equity
—
—
2
(23)
38
—
17
Disposals
—
(60)
—
—
—
(5)
(65)
Reclassification to held
for sale (note 10)
—
(122)
—
—
—
(2)
(124)
At 1 April 2025
429
9,412
(26)
491
(175)
(2,093)
8,038
Exchange adjustments
and other2
—
(144)
—
(4)
—
51
(97)
Charged/(credited) to
income statement
—
1,158
(5)
6
24
(88)
1,095
(Credited)/charged to
other comprehensive
income and equity
—
—
(9)
39
(14)
—
16
Disposals
—
(12)
—
—
—
—
(12)
At 31 March 2026
429
10,414
(40)
532
(165)
(2,130)
9,040
1.The deferred tax asset of £2,130 million as at 31 March 2026 (2025: £2,093 million) in respect of other net temporary differences relates
to losses of £456 million (2025: £298 million), US contract and lease liabilities of £632 million (2025: £603 million), US environmental
provisions of £558 million (2025: £575 million), US bad debt provision of £161 million (2025: £155 million) and other short-term temporary
differences of £323 million (2025: £462 million).
2.Exchange adjustments and other primarily comprises foreign exchange arising on translation of the US dollar deferred tax balances.
The total deferred
tax assets not recognised are as follows:
2026
2025
£m
£m
Capital losses
2,482
2,484
Trading losses
9
9