5 Financial income and expenses 2021 2020 52 weeks 52 weeks £’m £’m Financial income Interest on bank deposits 0.1 0.1 Net foreign exchange gains – 0.3 0.1 0.4 Financial expenses Interest on bank borrowings (0.8) (1.5) Amortisation of issue costs of bank loans (0.2) (0.3) Net foreign exchange losses (2.4) – Interest on lease liabilities (5.3) (5.5) (8.7) (7.3) Net financial expense (8.6) (6.9) 6 Taxation 2021 2020 52 weeks 52 weeks £’m £’m Current taxation UK corporation tax charge for the period 32.7 24.7 Adjustments in respect of prior periods (1.7) (1.1) 31.0 23.6 Deferred taxation Origination of temporary differences (1.3) (2.0) Impact of change in tax rate (0.8) (0.2) (2.1) (2.2) Total tax expense 28.9 21.4 The tax charge is reconciled with the standard rate of UK corporation tax as follows: 2021 2020 52 weeks 52 weeks £’m £’m Profit before taxation 157.8 109.1 UK corporation tax at standard rate of 19.0% (2020: 19.0%) 30.0 20.7 Factors affecting the charge in the period: Non-deductible expenses 1.4 2.0 Adjustmentsin respect of prior periods (1.7) (1.1) Impact of change in tax rate (0.8) (0.2) Tax charge 28.9 21.4 The taxation charge for the period as a percentage of profit before tax is 18.3% (2020: 19.6%). During the year the UK Government substantively enacted an increase in the corporation tax rate to 25.0% effective from 1 April 2023. The deferred tax asset as at 26 June 2021 has been calculated based on the rate of 25.0% unless the asset/liability is expected to be realised or settled before the rate increase in which case the rate of 19.0% has been used. DUNELM GROUP PLC ANNUAL REPORT & ACCOUNTS 2021 199 FINANCIAL STATEMENTSSTRATEGIC REPORTGOVERNANCE OTHER INFORMATION