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Notes to the Group financial statements

6 Taxation

a) Analysis of charge in the period

	2009 £m	2008 £m
Corporation tax
– current period	145	142
– adjustment in respect of prior period	(10)	(38)
	135	104
Deferred tax
– current period	69	40
– adjustment in respect of prior period	(9)	(86)
	60	(46)
Tax charge for the period	195	58

b) Tax on items credited / (charged) directly to equity

	2009 £m	2008 £m
Tax on hedging instruments
– current tax	19	–
– deferred tax	(17)	–
	2	–
Deferred tax credit on actuarial movements	29	10
Tax on share-based payments – taken to SoRIE	–	(2)

The tax for both periods is different to the standard rate of corporation tax in the UK of 28% (2008: 30%). The differences are explained below:

	2009 £m	2008 £m
Tax reconciliation
Profit before tax	655	612
Profit before tax at 28% (2008: 30%)	183	184
Effects of:
Expenses not deductible for tax purposes	8	14
Non-qualifying depreciation	31	35
Effect of tax rate changes on deferred tax	–	(32)
Deferred tax on Safeway acquisition assets	(7)	(11)
Divestment profits not taxable	(2)	(11)
Other	1	3
Prior period adjustments	(19)	(124)
Tax charge for the period	195	58

The prior period effective tax rate was 9%. This low rate was as a result of prior period corporation tax and deferred tax provision releases due to closure of negotiations with HM Revenue and Customs on issues relating to the Safeway group prior to its acquisition by Morrisons.