1 ACCOUNTING POLICIES (continued) Revenue reserve
This reserve includes net revenue recognised in the revenue column of the Statement of Comprehensive Income. This reserve is distributable. Capital redemption reserve
This reserve represents the cancellation of the C shares when they were converted into Ordinary shares and deferred shares. This reserve is not distributable. Taxation
There is no charge to UK income tax as the Group's allowable expenses exceed its taxable income. Deferred tax assets in respect of unrelieved excess expenses are not recognised as it is unlikely that the Group will generate suf?cient taxable income in the future to utilise these expenses. Deferred tax is not provided on capital gains and losses because the Company meets the conditions for approval as an investment trust company. Dividends payable to shareholders
Dividends to shareholders are recognised as a liability in the period in which they are paid or approved in general meetings and are taken to the Statement of Changes in Net Equity. Dividends declared and approved by the Group after the Balance Sheet date have not been recognised as a liability of the Group at the Balance Sheet date.
2 INCOME 2020 2021 GBP'000 GBP'000 Income from listed investments UK dividend income 1,381 2,069 Overseas dividend income 233 238 Property income distributions 94 107 Total income 1,708 2,414 Total income comprises entirely of dividends. 3 INVESTMENT MANAGEMENT FEE 2021 2020 Revenue Capital Total Revenue Capital Total GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Investment management fee 124 372 496 135 407 542
At 30 April 2021 there were amounts outstanding of GBP86,000 (2020: GBP58,000). 4
OTHER EXPENSES 2020 2021 GBP'000 GBP'000 Administration and secretarial fees 64 64 Directors' remuneration (note 5) 58 59 Auditors renumeration: audit services* 22 21 non-audit services* - (1) Insurance 3 3 Other expenses* 143 137 290 283 Subsidiary operating costs (10) (13) 280 270
* The above amounts include irrecoverable VAT where applicable. 5 DIRECTORS' REMUNERATION
2021 2020 GBP GBP Directors' fees 57,500 57,500 Social security costs 297 1,361 57,797 58,861 Remuneration to Directors 20,000 Lord Lamont (Chairman) 20,000 H Myles 20,000 20,000 W van Heesewijk* - - A Watkins 17,500 17,500 57,500 57,500 * Mr van Heesewijk has waived his entitlement to fees. 6. FINANCE COSTS
Appropriations in respect of
2021 2020
Revenue Capital Total Revenue Capital Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
Zero Dividend Preference shares - 630 630 - 607 607
- 630 630 - 607 607 7 TAXATION Based on the revenue return for the year
2021 2020
GBP'000 GBP'000
Overseas tax 27 38
27 38
The current tax charge for the year is lower than the standard rate of corporation tax in the UK of 19% to 30 April 2021 and 30 April 2020. The differences are explained below:
2021 2020
Revenue Capital Total Revenue Capital Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 Return on ordinary activities before
taxation 1,304 22,098 23,402 2,009 (18,073) (16,064)
Theoretical corporation tax at 19% (2020: 19%) 248 4,198 4,446 382 (3,434) (3,052) Effects of: - 3,354 3,354 Capital items not taxable - (4,271) (4,271) UK and overseas dividends which are not liable to UK corporation tax (307) - (307) (438) - (438)
Excess expenses in the year 59 73 132 56 80 136
Overseas tax 27 - 27 38 - 38
Actual current tax charged to the
revenue account 27 - 27 38 - 38
The Group has unrelieved excess expenses of GBP23,268,308 (2020: GBP22,576,227). It is unlikely that the Group will generate suf?cient taxable pro?ts in the future to utilise these expenses and therefore no deferred tax asset has been recognised. 8 RETURN PER SHARE Ordinary shares
Revenue return per Ordinary share is based on revenue on ordinary activities after taxation of GBP1,277,000 (2020: GBP1,971,000) and on 20,850,000 (2020: 20,850,000) Ordinary shares, being the weighted average number of Ordinary shares in issue during the year.
Capital return per Ordinary share is based on the capital pro?t of GBP22,098,000 (2020: loss of
GBP18,073,000) and on 20,850,000 (2020: 20,850,000) Ordinary shares, being the weighted average number of Ordinary shares in issue during the year. Zero Dividend Preference shares
Capital return per Zero Dividend Preference share 2025 is based on allocations from the Company of
GBP630,000 (2020: GBP607,000) and on 14,500,000 (2020: 14,500,000) Zero Dividend Preference shares 2025, being the weighted average number of Zero Dividend Preference shares in issue during the year 9 DIVIDENDS Declared and paid per Ordinary share
Fourth interim dividend for the year ended 2021 2020
GBP'000 GBP'000
30 April 2020 of 2.40p (2019: 2.40p) 500 500
Special dividend for the year ended
30 April 2020 of nil (2019: 2.50p) - 521
Fourth interim dividend for the year ended
30 April 2021 of 2.50p (2020: 2.40p) 521 500
Special Dividend for the year ended
30 April 2021 of 0.272p (2020: nil) 57 -
578 500
All dividends are paid from Revenue Reserve.
* Dividend paid subsequent to the year end. 10 INVESTMENTS - Group and Company
2021
Listed AIM Total GBP'000 GBP'000 GBP'000 Year ended 30 April 2021 Opening book cost 42,746 22,319 65,065 Opening investment holding losses (18,359) (6,118) (24,477) 24,387 16,201 40,588 Investments transferred between Listed and AIM during the year (2,418) 2,418 - Movements in the year: Purchases at cost 3,534 5,732 9,266 Disposals: Proceeds (6,977) (3,219) (10,196) Net realised gains on disposals 459 633 1,092 Decrease in investment holding losses 14,788 7,230 22,018 Closing valuation 33,773 28,995 62,768 Closing book cost 37,344 27,884 65,228 Closing investment holding (losses)/gains (3,571) 1,111 (2,460) 33,773 28,995 62,768 Realised gains on disposals 459 633 1,092 Decrease in investment holding losses 14,788 7,230 22,018 Gains on investments 15,247 7,863 23,110 10 INVESTMENTS - Group and Company (continued) 2020 Listed AIM Total GBP'000 GBP'000 GBP'000 Year ended 30 April 2020 Opening book cost 43,913 23,023 66,936 Opening investment holding (losses)/gains (7,238) 197 (7,041) Opening valuation 36,675 23,220 59,895 Movements in the year: Purchases at cost 5,906 2,145 8,051 Disposals: Proceeds (5,712) (4,600) (10,312) Net realised (losses)/gains on disposals (1,361) 1,751 390 Increase in investment holding (losses)/gains (11,121) (6,315) (17,436) Closing valuation 24,387 16,201 40,588 Closing book cost 42,746 22,319 65,065 Closing investment holding losses (18,359) (6,118) (24,477) 24,387 16,201 40,588 Realised (losses)/gains on disposals (1,361) 1,751 390 Increase in investment holding (losses)/gains (11,121) (6,315) (17,436) Losses on investments (12,482) (4,564) (17,046) Transaction costs
During the year the Group incurred transaction costs of GBP24,000 (2020: GBP41,000) and GBP14,000 (2020:
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