10 Tax

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The charge for tax is based upon the standard UK corporation tax rate of 30% (2006: 30%, 2005: 30%) and comprises:

2007  2006  2005 
£m  £m  £m 
Current tax charge 
Current year  2,385  1,929  1,583 
Adjustment for prior years  (11) 8  (59)
Total  2,374  1,937  1,524 
Deferred tax (credit)/charge 
Current year  (367) (16) (14)
Adjustment for prior years  (26) 20  (71)
Total  (393) 4  (85)
Tax charge  1,981  1,941  1,439 

The effective tax rate for the years 2007, 2006 and 2005 is lower than the standard rate of corporation tax in the UK of 30% (2006: 30%, 2005: 30%). The differences are set out below:

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2007  2006  2005 
£m  £m  £m 
Profit before tax  7,076  7,136  5,280 
Tax charge at standard UK corporation tax rate of 30% (2006: 30%, 2005: 30%) 2,123  2,141  1,584 
Adjustment for prior years  (37) 24  (133)
Differing overseas tax rates  (77) (17) (35)
Non-taxable gains and income (including amounts offset by unrecognised tax losses) (136) (393) (129)
Share-based payments  72  27  (12)
Deferred tax assets not previously recognised  (158) (4) (7)
Change in tax rates  24  4  3 
Other non-allowable expenses  170  159  168 
Overall tax charge  1,981  1,941  1,439 
Effective tax rate  28%  27%  27%