TaxationThe tax expense represents the sum of the tax currently payable and deferred tax.Current taxThe tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit asreported in the profit and loss account because it excludes items of income or expense that are taxable ordeductible in other years and it further excludes items that are never taxable or deductible. The company’sliability for current tax is calculated using tax rates that have been enacted or substantively enacted by thereporting end date.Deferred taxDeferred tax liabilities are generally recognised for all timing differences and deferred tax assets arerecognised to the extent that it is probable that they will be recovered against the reversal of deferred taxliabilities or other future taxable profits. Such assets and liabilities are not recognised if the timingdifference arises from goodwill or from the initial recognition of other assets and liabilities in a transactionthat affects neither the tax profit nor the accounting profit.The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to theextent that it is no longer probable that sufficient taxable profits will be available to allow all or part of theasset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the periodwhen the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and lossaccount, except when it relates to items charged or credited directly to equity, in which case the deferredtax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legallyenforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relateto taxes levied by the same tax authority.