Financial review
Deferred tax potentially recoverable on Group tax losses
The Group has carried forward losses; mainly in the UK, French and Canadian tax groups; that have the potential to reduce tax charges in future years. Deferred tax assets have been recognised on these tax losses to the extent their recovery is probable, having regard to the projected future taxable profits of the relevant tax groups.
The "possible tax assets" on these losses totalled US$1,000 million at 31 December 2008 (31 December 2007: US$1,196 million). Of these, US$899 million have been recognised as deferred tax assets (31 December 2007: US$868 million), leaving US$101 million (31 December 2007: US$328 million) unrecognised, as recovery is not considered probable. This amount excludes unrecognised capital losses which can only be recovered against future capital gains.
Within the UK tax group, US$246 million in tax losses have been recognised as deferred tax assets (31 December 2007: US$162 million), with no amounts unrecognised. Within the French tax group, US$309 million in tax losses have been recognised as deferred tax assets (31 December 2007: US$407 million) with no amounts unrecognised. Within the Canadian tax group, US$172 million in tax losses have been recognised as deferred tax assets (31 December 2007: US$62 million), with no amounts unrecognised.
