6 TAX ON PROFIT ON ORDINARY ACTIVITIES
The taxation charge for the six months to 30 June 2006 is based on an estimate of the effective rate of taxation for the current year. The effective rate of taxation applied to adjusted profits before tax for the half year is 29% (30 June 2005: 27%; 31 December 2005: 27%). A reconciliation of the tax charge on adjusted profits to the actual tax charge is presented below:
| 2006 Half year £m |
2005 Half year £m |
2005 Full year £m |
|
|---|---|---|---|
| The tax charge is analysed as follows: | |||
| Tax charge on adjusted profits before tax | 8.0 | 5.7 | 16.3 |
| Tax credit on amortisation of intangible assets and goodwill impairment charge | (0.2) | - | (1.2) |
| Tax charge/(credit) on unrealised loss on change in fair value of financial instruments | 0.2 | - | (0.8) |
| Tax charge on other financial income | - | 0.1 | 0.5 |
| Material transfers from unrecognised tax assets | - | 0.7 | (2.5) |
| Material changes in deferred tax rates | - | - | 0.5 |
| Tax charge on dividends received from EU subsidiaries | - | 2.8 | 2.8 |
| Tax charge on profit on disposal of business | 3.2 | - | - |
| Total | 11.2 | 9.3 | 15.6 |
