AmazonScience/document-haystack

110 Income tax (continued)2Movements in deferred tax during the year ended 31 December 2023 were recognised as follows:3Net deferred tax liabilities/(assets):4 5Property, 6plant and 7equipment  8£m9Intangible 10assets  11£m12Retirement 13benefit assets 14£m15Losses 16£m17Contingent 18and deferred 19revenue share 20payments 1 21£m22Other 23temporary 24differences  25£m26Total 27£m28At 31 December 2021 (62.3) 305.7 33.3 (27.0) – 16.9 266.629Income statement 17.7 (14.5) 0.1 (28.7) – 11.9 (13.5)30Other comprehensive income – – (8.6) – – – (8.6)31Arising on business combinations – 85.4 – – – 0.5 85.932Settlement of tax on pension asset – – (2.5) – – – (2.5)33Exchange adjustment (0.5) 8.9 – (1.2) – 3.0 10.234At 31 December 2022 (45.1) 385.5 22.3 (56.9) – 32.3 338.135Income statement 13.9 (46.7) 0.6 (3.3) (5.1) (18.0) (58.6)36Other comprehensive income – – (1.3) – – – (1.3)37Arising on business combinations  38(Note 32) – 368.9 – – (309.8) – 59.139Exchange adjustment 0.2 1.8 – 0.5 (6.6) (1.3) (5.4)40At 31 December 2023 (31.0) 709.5 21.6 (59.7) (321.5) 13.0 331.941Amounts presented on the consolidated balance sheet:422023 43£m442022 45£m46Deferred tax liabilities 825.1 495.447Deferred tax assets (493.2) (157.3)48Net deferred tax liability 331.9 338.149The average standard rate of UK corporation tax during the period was 23.52% (2022: 19.0%). 50The deferred tax assets and liabilities are measured at the tax rates of the respective territories which are expected to apply in the year 51in which the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted 52at the balance sheet date. Deferred tax assets have been recognised based on the ability of future offset against deferred tax liabilities 53or against future taxable profits, to the extent they relate to the same taxable entity. The assessment of future taxable profits is based on 54forecasts and assumptions consistent with those used for impairment testing as set out in Note 14. 55As at 31 December 2023, the Group had £1,760.9m (2022: £1,764.6m) of gross unrecognised deferred tax assets. This unrecognised 56deferred tax asset consists of £213.3m of capital losses (2022: £213.3m), £1,479.5m of income losses (2022: £1,538.3m), £66.2m of 57deferred interest relief (2022: £13.0m) and £1.9m of other deferred tax assets (2022: £nil). These assets arise in entities that do not have 58deferred tax liabilities they can be set against, and where there are either no forecast future taxable profits, or the potential future profits 59are not sufficiently certain to support the deferred tax asset recognition. 60There are no significant unrecognised taxable temporary differences associated with investments in subsidiaries.61With effect from 1 April 2023 the standard rate of UK Corporation Tax was increased from 19% to 25%. The 25% rate has therefore been 62used in measuring the UK deferred tax items at the date of this Report. Deferred tax on retirement benefit assets is provided at 35.0%, 63which is the rate applicable to refunds at the date of this Report.64In Gibraltar, a temporary enhanced tax deduction for qualifying business marketing and promotion costs was introduced in July 2021, 65which applied for the years ended 31 December 2021 and 31 December 2022. The total impact of this measure for the Group has been 66a cumulative tax credit of £48.4m. In a subsequent Gibraltar Budget on 28 June 2022 the Chief Minister unexpectedly announced the 67retrospective removal of this enhanced deduction, except in very limited circumstances. This change had not been substantively enacted 68by the balance sheet date and so is not reflected in the tax charge for the year. The impact of this change, once enacted, will depend on 69how it is implemented and to which periods the change applies, but could result in a tax charge of up to £48.4m.70The Group’s future tax charge, and effective tax rate, will be affected by a number of factors including the geographic mix of profits, 71changes to statutory corporate tax rates and the impact of continuing global tax reforms.72During 2023 the UK enacted legislation to implement the OECD’s global minimum tax model rules for multinational groups (“Pillar Two”). 73This will apply from 1 January 2024 and is not expected not significantly increase the Group’s future Effective Tax Rate. The Group has 74applied the temporary exception required under IAS 12 Income Taxes in relation to the accounting for deferred taxes arising from the 75implementation of the Pillar Two rules.761 Overview 8 Strategic report 88 Governance 140 Financial statements77Entain plc Annual Report 2023 17978Notes to the consolidated  79financial statements 80for the year ended  8131 December 2023