9  Taxation on loss on ordinary activities

2009

£’000

2008

£’000

Current tax

Research and development tax credits receivable

–

(140)

Overseas tax

96

81

Withholding tax

10

–

106

(59)

Deferred tax

Deferred overseas tax

(523)

(351)

Release of overseas tax provision – exceptional item

–

(1,354)

(523)

(1,705)

Tax credit on (loss)/profit before taxation

(417)

(1,764)

Factors affecting the current tax charge

The tax assessed on the (loss)/profit on ordinary activities for the year is higher (2008: lower) than the standard rate of corporation tax in the UK of 28% (2008: 28%). The differences are reconciled below:

2009

£’000

2008

£’000

(Loss)/profit on ordinary activities before tax

(4,038)

1,574

(Loss)/profit on ordinary activities before tax multiplied by the

standard rate of corporation tax in the UK of 28% (2008: 28%)

(1,131)

441

Amortisation not allowed for tax purposes

296

–

Expenses not deductible for tax purposes

78

329

Research and development tax credit

–

(140)

Utilised UK tax losses

(339)

(578)

Unrelieved overseas tax losses

545

155

Tax rate difference

(180)

(3)

Decelerated capital allowances

12

(50)

Overseas tax

96

–

Release of overseas tax provision

–

(1,354)

Other temporary differences

196

(564)

Withholding tax suffered

10

–

Total current tax

(417)

(1,764)