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		UK Overseas Total
		2008 £m	2007 £m	2008 £m	2007 £m	2008 £m	2007 £m
Current tax
Current tax charge for the year		7	47	88	72	95	119
Less double tax relief		(7)	(7)	—	—	(7)	(7)
		—	40	88	72	88	112
Adjustments in respect of prior years		(9)	(27)	14	21	5	(6)
		(9)	13	102	93	93	106
Deferred tax
Deferred tax (credit)/charge for the year		(574)	65	(50)	13	(624)	78
Adjustments in respect of prior years		2	(8)	(18)	(8)	(16)	(16)
Deferred tax credit resulting from reduction in tax rates1		—	(23)	—	(12)	—	(35)
		(572)	34	(68)	(7)	(640)	27
Recognised in the income statement		(581)	47	34	86	(547)	133
Other tax charges/(credits)
						2008 £m	2007 £m
							£m
Recognised in the statement of recognised income and expense	– deferred tax1					(15)	95
Recognised directly in equity	– current tax					—	(43)
	– deferred tax1					11	23
						(4)	75

¹ In 2007, the deferred tax assets and liabilities reflected the reductions in corporate tax rates in the UK and Germany which were enacted during that year. The resulting charges or credits were recognised in the income statement except to the extent that they related to items previously charged or credited to the statement of recognised income and expense or equity. Accordingly in 2007, £35m was credited to the income statement, £9m was charged to the statement of recognised income and expense, and £5m was charged directly to equity.

Tax reconciliation

	2008 £m	2007 £m
(Loss)/profit before taxation	(1,892)	733
Less share of profits of joint ventures (note 10)	(74)	(66)
(Loss)/profit before taxation excluding joint ventures	(1,966)	667
Nominal tax charge at UK corporation tax rate 28.5 % (2007 30 %)	(560)	200
UK R&D credit	(25)	(22)
Rate differences	16	12
Other permanent differences	15	(3)
Benefit to deferred tax from previously unrecognised tax losses and temporary differences	(3)	(6)
Tax losses in year not recognised in deferred tax	21	9
Adjustments in respect of prior years	(11)	(22)
Reduction in opening deferred taxes resulting from reduction in tax rate	—	(35)
	(547)	133
Analysis of taxation charge:
Underlying items (note 2)	217	193
Non-underlying items	(764)	(60)
	(547)	133

Deferred taxation assets and liabilities

	2008 £m	2007 £m
At January 1	(264)	(111)
Amount credited/(charged) to income statement	640	(27)
Amount credited/(charged) to statement of recognised income and expense (SORIE)	15	(95)
Amount charged to equity	(11)	(23)
On acquisition of business	(5)	—
Exchange movements	3	(8)
At December 31	378	(264)
Analysed as:
Deferred tax assets	685	81
Deferred tax liabilities	(307)	(345)
	378	(264)

The analysis of the deferred tax position is as follows:

	At January 1, 2008 £m	Recognised in income statement	Recognised in SORIE £m	Recognised in equity £m	On acquisition £m	Exchange movements £m	At December 31, 2008 £m
Intangible assets	(140)	(50)	—	—	(4)	(6)	(200)
Property, plant and equipment	(143)	3	—	—	—	(6)	(146)
Other temporary differences	62	(40)	—	(20)	—	(33)	(31)
Amounts recoverable on contracts	(145)	(50)	—	—	—	—	(195)
Pensions and other post-retirement scheme benefits	35	(26)	(7)	—	(1)	48	49
Foreign exchange and commodity financial assets and liabilities	(121)	754	22	—	—	—	655
Losses	124	49	—	9	—	—	182
Advance corporation tax	64	—	—	—	—	—	64
	(264)	640	15	(11)	(5)	3	378
						2008 £m	2007 £m
Advance corporation tax						118	118
Losses and other unrecognised deferred tax assets						67	42
Deferred tax not recognised on unused tax losses and other items on the basis that future economic benefit is uncertain						185	160

In addition, there are temporary differences of £946m (2007 £943m) relating to investments in subsidiaries and joint ventures. No deferred tax has been provided in respect of these differences, since the timing of the reversals can be controlled and it is probable that the temporary differences will not reverse in the future.