Financial statements N otes to the consolidated financial statements continued 9. Income tax expense The corporate income tax charge comprises the following: 2021 2020 £000 £000 Current tax for the year (12,638) (12,970) Adjustments for current tax of prior years 620 (203) Total current tax (12,018) (13,173) Movement in deferred tax liabilities 6,594 (13,173) Movement in deferred tax assets 4,359 6,148 Income tax expense in profit or loss (1,065) ( 7,025) 2021 2020 £000 £000 Income (Loss) before income taxes (55,650) 3,096 Tax at the UK rate of 19% (2020:19%) 10,574 (589) Tax effect of amounts which are non-deductible (taxable) (12,840) (4,245) Differences in overseas tax rates 581 (1,988) Adjustment for current taxes of prior years 620 (203) Income tax expense in profit or loss (1,065) ( 7,025) The applicable tax rate is based on the proportion of the contribution to the result by the Group entities and the tax rate applicable in the respective countries. The applicable tax rate in the respective countries ranges from 0% to 1 34%. The effective tax rate for the year deviates from the applicable tax rate mainly because of non-deductible items, amortisation, accelerated capital allowances over depreciation on plant, property and equipment and differences in overseas tax rate. In 2021 the effective tax rate was impacted by two discreet items in the US, which are not expected to recur in following years. Note: 1. T he Group ensures that companies operating in low-tax jurisdictions have genuine commercial activities and operations and are not located there to take advantage of its tax regime. 10. Earnings per share 2021 2020 Loss attributable to shareowners of the Company (£000) (56,715) (3,929) Weighted average number of Ordinary Shares 551,752,618 493,290,974 Basic loss per share (pence) (10.3) (0.8) Diluted loss per share (pence) (10.3) (0.8) Earnings per share is calculated by dividing the net result attributable to the shareowners of the S4Capital Group by the weighted average number of Ordinary Shares in issue during the year. 136 S4Capital Annual Report and Accounts 2021