8. Taxation - Severfield Annual Report 2023

a) The taxation charge comprises:

	2023 £000	2022 £000
Current tax
UK corporation tax charge	(5,460)	(4,178)
Foreign tax relief/other relief	51	124
Foreign tax suffered	(51)	(125)
Adjustments to prior years' provisions	60	(251)
	(5,400)	(4,430)
Deferred tax (note 20)
Current year credit	(144)	415
Impact of change in future years' tax rates	(14)	(1,457)
Adjustments to prior years' provisions	17	73
	(141)	(969)
	(5,541)	(5,399)

b) Tax reconciliation

The charge for the year can be reconciled to the profit per the income statement as follows:

	2023 £000	2022 £000
Profit before tax	27,107	21,000
Tax on profit at standard UK corporation tax rate	(5,150)	(3,990)
Expenses not deductible for tax purposes	(1,068)	(536)
Income not taxable	234	506
Tax effect of share of results of JVs and associates	380	256
Adjustments to prior years' provisions	77	(178)
Rate differences	(14)	(1,457)
	(5,541)	(5,399)

Corporation tax was calculated at 19 per cent (2022: 19 per cent) of the estimated taxable result for the year. On 4 March 2021, the UK government announced an intention to increase the rate of corporation tax to 25 percent with effect from 1 April 2023. Hence all deferred tax balances have been calculated at 25 percent.