Dauwalder's (Stamp Dealers) Limited

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

The redeemable preference shares carry no vote and are entitled to a fixed 4% cumulative dividend payable annually on 28 November. They are recognised as a liability in the balance sheet since they meet the definition of a financial liability set out in FRS 102 Section 22 'Liabilities and Equity'. Accordingly, the financial liability recognised is measured by discounting the expected future cash flows at the effective rate of interest. The effective interest charge is recognised as a finance cost through the profit and loss account.

The redeemable preference shares are redeemable in respect of any holder thereof in whole or in part at the Company's option at any time between 28 November 2008 and the final redemption date of 28 November 2022. For redemptions after 28 November 2009, a premium of 5 pence per share shall be paid for each year or part thereof that elapses. The holders thereof shall have priority over the other classes of share concerning a return of capital but shall not be entitled to participate in any distribution on a winding up or in a reduction of capital involving a return of capital in excess of these redemption provisions.

The Company redeemed 41,000 of these shares on 1 December 2021 (41,000 on 1 December 2020) resulting in an increase in the capital redemption reserve fund by their nominal value of £41,000.