v3.26.1
Tax (Tables)
 6 Months Ended
Jun. 30, 2026
Income taxes paid (refund) [abstract]  
Schedule of relationship between tax expense and accounting profit An explanation of the relationship between tax expense and accounting profit is set out below:
Half-year
to 30 Jun
2026
£m
Half-year
to 30 Jun
2025
£m
Half-year
to 31 Dec
2025
£m
Profit before tax
4,293
3,504
3,157
UK corporation tax thereon at 25.0% (2025: 25.0%)
(1,073)
(876)
(789)
Impact of surcharge on banking profits
(94)
(86)
(81)
Non-deductible costs: conduct charges
–
1
(71)
Non-deductible costs: bank levy
–
–
(33)
Other non-deductible costs1
(43)
(68)
(4)
Non-taxable income1
34
34
65
Tax relief on coupons on other equity instruments
57
61
55
Non-taxable (non-deductible) foreign exchange gains (losses)1
15
(74)
(1)
Tax-exempt gains on disposals
62
25
37
Tax losses where no deferred tax recognised
4
(4)
(3)
Differences in overseas tax rates
(2)
7
(12)
Policyholder tax in respect of the life assurance business
(18)
(35)
(36)
Deferred tax in respect of life assurance policyholder tax
(106)
(40)
(79)
Adjustments in respect of prior years
(6)
95
11
Tax effect of share of results of joint ventures
–
–
(3)
Provision for Pillar 2 current income taxes
–
–
–
Tax expense
(1,170)
(960)
(944)
1Non-taxable (non-deductible) foreign exchange gains (losses) on non-sterling denominated other equity instruments and on
net investment hedging of subsidiaries, previously shown in aggregate within other non-deductible costs and non-taxable
income, are now presented as an individual line item. Comparatives are represented on a consistent basis.