8 Taxation 2021 2020 52 weeks 52 weeks £’m £’m Current taxation UK corporation tax charge for the period - – - – Deferred taxation Origination of temporary differences (0.4) (0.1) Total tax credit (0.4) (0.1) 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 24.5 122.3 UK corporation tax at standard rate of 19.0% (2020: 19.0%) 4.7 23.2 Factors affecting the charge in the period: Income not subject to tax (4.7) (23.0) Group relief (0.4) (0.3) Tax credit (0.4) (0.1) 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. 9 Interest bearing loans and borrowings The Company’s only interest bearing borrowings relate to intercompany loans which have interest charges of 2.0% and are not affected by changes in Libor rates. 10 Financial risk management CAPITAL MANAGEMENT The Board’s objective with respect to capital management is to ensure the Company continues as a going concern in order to optimise returns to shareholders. The Board’s policy is to retain a strong capital base so as to maintain investor, creditor and market confidence and to sustain future development. The Board regularly monitors the level of capital in the Group to ensure that this can be achieved. 11 Issued share capital Disclosures relating to issued share capital are set out in note 20 in the Group’s financial statements on page 211. DUNELM GROUP PLC ANNUAL REPORT & ACCOUNTS 2021 223 FINANCIAL STATEMENTSSTRATEGIC REPORTGOVERNANCE OTHER INFORMATION