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5 Taxation

Note 2009
(52 weeks)
£m		 2008
(53 weeks)
£m
Current taxation charge/(credit)
– current year 22.9 18.0
– adjustment in respect of prior years (0.1) –
22.8 18.0
Deferred taxation (credit)/charge 17
– current year (1.4) 3.0
– adjustment in respect of prior years (0.3) 0.4
(1.7) 3.4
Continuing operations 21.1 21.4
Discontinued operations 23 – 0.1
21.1 21.5
Tax on items charged directly to equity:
– current tax credit on exchange movements offset in reserves (12.5) (1.4)
– deferred tax credit on actuarial losses (31.3) (0.8)
– deferred tax credit on purchase of preference shares 15 (0.8) (0.6)

The tax for the period is lower than the standard rate of corporation tax in the UK (28%), and can be reconciled as follows:

Note 2009
(52 weeks)
£m		 2008
(53 weeks)
(restated)
£m
Profit before taxation 72.8 71.2
Preference dividends 3.5 5.6
Gain on purchase of preference shares (3.7) (0.9)
Profit before tax, preference dividends and gain on purchase of preference shares 72.6 75.9
Profit before tax, preference dividends and gain on purchase of preference shares multiplied by 28.33% (2008: 30.0%) 20.6 22.8
Effect of prior year adjustments (0.4) 0.4
Adjustments in respect of foreign tax rates 3.0 2.5
Benefits from internal financing structure (4.0) (4.8)
Effect of withdrawal of tax allowances on buildings 0.8 –
Effect of UK corporation tax rate reduction on deferred tax balances – (0.8)
Other 1.1 1.3
Continuing operations 21.1 21.4
Discontinued operations 23 – 0.1
21.1 21.5

Prior year has been restated to calculate profit before tax, preference dividends and gain on purchase of preference shares.