Recognised in the income statement2017
Current UK tax expense:
Current year520554
Adjustments for prior years(8)210
Current foreign tax expense:
Current year4,7563,052
Adjustments for prior years(138)19
Total current tax5,1303,835
Deferred tax expense (note 15):
Origination and reversal of temporary differences(454)(196)
Adjustments for prior years(34)(787)
Deferred tax income(488)(983)
Tax in income statement4,6422,852
Tax recognised directly in equity2017
Current tax recognised directly in equity — IFRS2 share based tax credit(522)(70)
Deferred tax recognised directly in equity — IFRS2 share based tax charge/(credit)130(90)
Total tax recognised in equity(392)(160)
Reconciliation of effective tax rate ('ETR') and tax expense2017
Profit for the period12,69810,225
Tax from continuing operations4,6422,852
Profit before tax17,34013,077
Tax using the UK corporation tax rate of 20% (2016: 20%)3,468202,61520
Tax suffered on dividends26421332
Retention tax102171
Non-deductible expenses19012232
Tax incentives(274)(2)(123)(1)
IFRS2 share option (credit)/charge(1)1121
Deferred tax assets not recognised511372
Different tax rates on overseas earnings54032562
Adjustments in respect of prior years(180)(1)(558)(4)
Tax rate change2251
Total tax in income statement4,642272,85222

A reduction in the UK corporation tax rate from 21% to 20% (effective from 1 April 2015) was substantively enacted on 2 July 2013. Further reductions to 19% (effective from 1 April 2017) and to 18% (effective 1 April 2020) were substantively enacted on 26 October 2015, and an additional reduction to 17% (effective 1 April 2020) was substantively enacted on 6 September 2016. This will reduce the Company's future current tax charge accordingly. Deferred tax has been calculated based on these enacted rates.

At a consolidated level there is a provision for £1.2m (2016: £1.2m) relating to open enquiries with a tax authority. Negotiations with the tax authority are ongoing and the Group expects to settle the liability within a year. The Group has consulted with an external tax advisor to determine an appropriate amount to recognise on the balance sheet. The amount recognised is an estimate and therefore the final outcome could vary to what is provided in the financial statements. There has been no movements in the provision during the year. The amount recognised in the Company financial statements is £nil (2016: £nil).