| For the period | 52 weeks to
1 April
2016
£m | 53 weeks to
3 April
2015
£m |
|---|
| Current taxation | | |
| UK corporation tax charge for the period | 13.1 | 20.9 |
| Adjustment in respect of prior periods | — | (1.8) |
| 13.1 | 19.1 |
| Deferred taxation | | |
| Origination and reversal of temporary differences | 3.1 | (1.5) |
| Adjustment in respect of prior periods | 0.1 | 0.4 |
| 3.2 | (1.1) |
| Total tax charge for the period | 16.3 | 18.0 |
The tax charge is reconciled with the standard rate of UK corporation tax as follows:
| For the period | 52 weeks to
1 April
2016
£m | 53 weeks to
3 April
2015
£m |
|---|
| Profit before tax | 79.8 | 83.8 |
| UK corporation tax at standard rate of 20% (2015: 21%) | 16.0 | 17.6 |
| Factors affecting the charge for the period: | | |
| Depreciation on expenditure not eligible for tax relief | 1.1 | 1.3 |
| Employee share options | (0.4) | 0.4 |
| Other disallowable expenses | (0.3) | 0.4 |
| Adjustment in respect of prior periods | 0.1 | (1.4) |
| Impact of overseas tax rates | (0.4) | (0.4) |
| Impact of change in tax rate on deferred tax balance | 0.2 | 0.1 |
| Total tax charge for the period | 16.3 | 18.0 |
The UK corporation tax rate reduced from 21% to 20% (effective 1 April 2015) and will be further reduced to 19% (effective from 1 April 2017) and 18% (effective from 1 April 2020) following changes substantively enacted on 26 October 2015. This will reduce the Company's future current tax charge accordingly. The deferred tax asset at 1 April 2016 has been calculated based on the rate of 18% substantively enacted at the balance sheet date.
In the Chancellor's March 2016 budget he announced plans to further reduce the corporation tax rate to 17% from 1 April 2020, however this was yet to be substantively enacted at the balance sheet date.
In this financial period, the UK corporation tax rate was 20% (2015: 21%).
The effective tax rate of 20.5% (2015: 21.5%) is higher than the UK corporation tax rate principally due to the non-deductibility of depreciation charged on capital expenditure.
The tax charge on profit for the financial period was £16.3m (2015: £18.0m), including a £0.3m credit (2015: £0.1m charge) in respect of tax on non-recurring items.
An income tax credit of £0.4m (2015: £1.2m charge) on other comprehensive income relates to the movement in fair valuing forward currency contracts outstanding at the year end. No other items within other comprehensive income have a tax impact.
In addition to the above a £0.7m (2015: £nil) current tax credit and a £1.4m deferred tax debit (2015: £0.3m credit) is recognised in reserves in relation to employee share options.
The Group engages openly and proactively with tax authorities both in the UK and internationally, where it trades and sources products, and is considered low risk by HM Revenue and Customs ("HMRC"). The Company is fully committed to complying with all of its tax payment and reporting obligations.
In this period, the Group's contribution to the UK Exchequer from both taxes paid and collected exceeded £150m (2015: £149.0m) with the main taxes including corporation tax £17.2m (2015: £16.1m), net VAT £50.2m (2015: £53.1m), employment taxes of £45.3m (2015: £42.8m) and business rates £36.9m (2015: £37.0m).