11. Taxation

2009
£000 		2008
£000
Analysis of charge / (credit) in the period:
United Kingdom corporation tax at 28% (2008: 28%) representing total current tax - -
Deferred tax expense / (credit) resulting from the origination and reversal of temporary differences - (863)
Total tax charge / (credit) - (863)


There is no current tax charge in the year as the Group has utilised management losses brought forward and used substantial shareholding relief for disposals made. The tax for the period is lower (2008: lower) than the standard rate of corporation tax in the UK of 28% (2008: 28%). The differences are explained below:

Reconciliation from reported profit / (loss) to total tax (credit) 2009
£000 		2008
£000
Profit / (loss) before taxation 5,322 (6,724)
Profit / (loss) before taxation multiplied by the applicable rate of corporation tax in the UK of 28% (2008: 28%) 1,491 (1,883)
Tax effect of:
Income not subject to tax (unrealised gains expected to be covered by substantial shareholder relief) (392) (245)
Income not subject to tax (realised gains covered by substantial shareholder relief) (1,448) -
Expenses not deductible for tax purposes 12 895
Tax losses for which no deferred tax income tax asset was recognised 337 370
Total tax charge / (credit) - (863)


Deferred tax liability 2009
£000 		2008
£000
Accelerated capital allowances 22 17
Deferred tax arising on fair value uplifts of non-substantial shareholdings (868) (440)
Losses 846 423
Total deferred tax liability - –

Substantial Shareholdings Exemption (SSE)

The Group is eligible for Substantial Shareholdings Exemption (SSE) as it is a member of a trading group whilst it is a subsidiary of Imperial College London.

However, should the Group cease to be part of the Imperial College London group of companies (i.e. Imperial College London’s holding falls below 50%) transitional rules apply, which are likely to preserve the exemption for a further 2 years; in that event after 2 years, it is likely that the Group would no longer benefit from this exemption from taxation on chargeable gains from disposals of substantial shareholdings.