Notes to the financial statements continued

Notes to the financial statements continued

Year ended 31 December 2017

18. Deferred income tax

Deferred income tax assets and liabilities are only offset where there are legally enforceable rights to offset current tax assets against current

tax liabilities and when the deferred income tax relates to the same fiscal authority. The deferred tax assets and liabilities are offset when

realised through current tax. The deferred income tax assets and liabilities at 31 December, without taking into consideration the offsetting

balances within the same jurisdiction, are as follows:

The movement on the deferred tax account is shown below:

Group

Company

2017

?m

2016

?m

2017

?m

2016

?m

29.5

29.9

1.5

1.6

7.4

6.6

0.7

0.9

36.9

36.5

2.2

2.5

Deferred tax assets

¨C Deferred tax asset to be recovered after more than 12 months

¨C Deferred tax asset to be recovered within 12 months

Deferred tax liabilities

¨C Deferred tax liability to be recovered after more than 12 months

(2.2)

(3.1)

¨C

¨C

¨C Deferred tax liability to be recovered within 12 months

(0.7)

(0.5)

¨C

¨C

(2.9)

(3.6)

¨C

¨C

34.0

32.9

2.2

2.5

2017

?m

2016

?m

2017

?m

2016

?m

32.9

30.7

2.5

1.8

Amount credited/(charged) to the income statement (Note 12)

8.2

(2.1)

¨C

0.7

Effect of tax rate change within the income statement (Note 12)

(0.9)

0.2

¨C

¨C

Deferred tax asset ¨C net

Group

At 1 January ¨C asset

Company

Tax credited/(charged) to other comprehensive income

¨C Pension asset on actuarial (gain)/loss

(2.8)

7.2

(0.1)

0.4

¨C Pension asset on additional contributions

(1.7)

(1.8)

(0.2)

(0.1)

¨C Pension asset ¨C effect of UK tax rate change within other

comprehensive income

¨C Employee benefits

¨C Revaluations of available-for-sale investments

¨C Movement on foreign exchange reserves

Additions through business combinations (Note 17.4)

0.1

(0.3)

¨C

¨C

(0.8)

(2.9)

¨C

(0.3)

0.1

0.2

¨C

¨C

0.1

(0.3)

¨C

¨C

(0.8)

(0.6)

¨C

¨C

Exchange movement

(0.4)

2.6

¨C

¨C

At 31 December ¨C asset

34.0

32.9

2.2

2.5

Deferred income tax assets have been recognised for tax loss carry-forwards and other temporary differences to the extent that the

realisation of the related tax benefit through future taxable profits is probable.

128

Savills plc

Report and Accounts 2017

Overview

Strategic report

Financial statements

Governance

As at the reporting date the Group did not recognise deferred tax income tax assets of ?1.4m (2016: ?0.4m) in respect of losses amounting

to ?5.9m (2016: ?1.2m) that can be carried forward indefinitely against future taxable income.

Accelerated

capital

allowances

?m

Other

including

provisions

?m

Tax losses

?m

Retirement

benefits

?m

Employee

benefits

?m

Total

?m

At 1 January 2016

0.5

13.4

9.7

3.0

6.8

33.4

Amount credited/(charged) to the income statement (Note 12)

0.8

2.6

(7.2)

0.1

1.5

(2.2)

Effect of UK tax rate change within income statement (Note 12)

0.1

0.1

¨C

¨C

¨C

0.2

Tax charged/(charged) to other comprehensive income (Note 12)

¨C

¨C

¨C

5.4

(2.9)

2.5

Effect of tax rate change charged to other comprehensive income

(Note 12)

¨C

¨C

¨C

(0.3)

¨C

(0.3)

Transfer (from)/to deferred tax assets

¨C

(1.7)

¨C

1.7

¨C

¨C

Exchange movement

¨C

1.6

1.0

0.3

¨C

2.9

At 31 December 2016

1.4

16.0

3.5

10.2

5.4

36.5

Amount credited/(charged) to the income statement (Note 12)

Deferred tax assets ¨C Group

0.5

5.2

(0.9)

¨C

2.3

7.1

Effect of tax rate change within income statement (Note 12)

¨C

(1.0)

(0.2)

0.1

¨C

(1.1)

Tax charged to other comprehensive income (Note 12)

¨C

¨C

¨C

(4.5)

(0.8)

(5.3)

Effect of tax rate change charged to other comprehensive income

(Note 12)

¨C

¨C

¨C

0.1

¨C

0.1

0.3

(0.1)

¨C

(0.2)

¨C

¨C

Additions through business combinations (Note 17.4)

¨C

0.1

¨C

¨C

¨C

0.1

Exchange movement

¨C

(0.6)

0.1

¨C

¨C

(0.5)

2.2

19.6

2.5

5.7

6.9

36.9

Revaluations

?m

Intangible

assets

?m

Total

?m

Transfer to/(from) deferred tax assets

At 31 December 2017

Deferred tax liabilities ¨C Group

At 1 January 2016

Amount credited/(charged)to the income statement (Note 12)

Accelerated

capital

allowances

?m

(0.2)

Other

including

provisions

?m

(0.6)

(0.3)

(1.6)

(2.7)

0.1

(0.6)

¨C

0.6

0.1

Tax (charged)/credited to other comprehensive income (Note 12)

¨C

(0.3)

0.2

¨C

(0.1)

Additions through business combinations

¨C

¨C

¨C

(0.6)

(0.6)

Exchange movement

¨C

(0.1)

¨C

(0.2)

(0.3)

(0.1)

(1.6)

(0.1)

(1.8)

(3.6)

Amount credited to the income statement (Note 12)

¨C

0.6

¨C

0.5

1.1

Effect of tax rate change within the income statement (Note 12)

¨C

¨C

¨C

0.2

0.2

Tax credited to other comprehensive income (Note 12)

¨C

0.1

0.1

¨C

0.2

Additions through business combinations (Note 17.4)

¨C

¨C

¨C

(0.9)

(0.9)

Exchange movement

¨C

¨C

¨C

0.1

0.1

(0.1)

(0.9)

¨C

(1.9)

(2.9)

At 31 December 2016

At 31 December 2017

Net deferred tax asset

At 31 December 2017

34.0

At 31 December 2016

32.9

Savills plc

Report and Accounts 2017

129

Notes to the financial statements continued

Year ended 31 December 2017

18. Deferred income tax continued

Accelerated

capital

allowances

?m

Other

including

provisions

?m

Retirement

benefits

?m

Employee

benefits

?m

Total

?m

At 1 January 2016

0.1

0.5

0.1

1.1

1.8

Amount credited to the income statement

0.2

0.2

¨C

0.3

0.7

¨C

¨C

0.3

(0.3)

¨C

0.3

0.7

0.4

1.1

2.5

Amount (charged)/credited to the income statement

¨C

(0.4)

¨C

0.4

¨C

Tax charged to other comprehensive income (Note 12)

¨C

¨C

(0.3)

¨C

(0.3)

0.3

0.3

0.1

1.5

2.2

Deferred tax assets ¨C Company

Tax credited/(charged) to other comprehensive income (Note 12)

At 31 December 2016

At 31 December 2017

Net deferred tax asset

At 31 December 2017

2.2

At 31 December 2016

2.5

19. Trade and other receivables

Group

Trade receivables

Company

2017

?m

2016

?m

2017

?m

2016

?m

391.2

333.2

¨C

¨C

Less: provision for impairment of receivables

(19.9)

(19.3)

¨C

¨C

Trade receivables ¨C net

371.3

313.9

¨C

¨C

¨C

¨C

5.3

13.1

Amounts owed by subsidiary undertakings

Other receivables

53.0

39.5

0.1

0.7

Prepayments and accrued income

66.3

66.0

2.5

2.7

490.6

419.4

7.9

16.5

The carrying value of trade and other receivables is approximate to their fair value.

There is no concentration of credit risk with respect to trade and other receivables as the Group has a large number of clients internationally

dispersed with no individual client owing a significant amount. The credit quality of receivables is managed at a local subsidiary level with

uncollectible amounts being impaired where necessary.

Amounts owed by subsidiary undertakings are unsecured, interest-free and generally cleared within the month.

As at 31 December 2017, trade receivables of ?280.6m (2016: ?232.0m) were neither past due nor impaired and fully performing.

As at 31 December 2017, trade receivables of ?19.9m (2016: ?19.3m) were impaired and provided for. The individually impaired receivables

mainly relate to receivables from clients that have been affected by the uncertain economic conditions where funding and completion have

been delayed and cash flow has become uncertain.

The ageing of these receivables is as follows:

Group

2017

?m

2016

?m

Up to 3 months

1.6

3.4

3 to 6 months

4.9

1.9

Over 6 months

13.4

14.0

19.9

19.3

As at 31 December 2017, trade receivables of ?90.7m (2016: ?81.9m) were past due but not impaired. These relate to trade receivables

which are past due at the reporting date but are not considered impaired as there has not been a significant change in credit quality and the

amounts are still considered recoverable.

130

Savills plc

Report and Accounts 2017

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