7 Taxation
The tables below reconcile the notional tax charge at the UK corporation tax rate to the effective tax rate for the year:
Following Royal Assent of the 2008 Finance Act on 21 July 2008, the abolition of industrial buildings allowances was formally enacted. The financial impact as a consequence of this legislation was a one-off deferred tax charge of £206.4 million, which was included in the deferred tax charge for the year ended 31 March 2009; however, the cash impact will be spread over a period of approximately 20 years.
A tax credit of £54.5 million (2009: £5.8 million) arose in the year in relation to the agreement of prior years’ UK tax returns.