www.bordersandsouthern.com  33  Borders & Southern Petroleum plc Annual Report & Accounts 2014 STRATEGIC  REPORT DIRECTORS’  REPORT F INANCIAL  S T ATEMENTS The Group has a deferred tax asset of approximately $546,848 (2013 – $201,652) in respect of unrelieved tax losses of  approximately $2,734,239 at 31 December 2014 (2013 – $866,661). The rate of tax used in the calculation of the deferred tax  asset is 21.5% (2013 – 23%). The deferred tax asset has not been recognised in the financial statements as the timing of the  economic benefit is uncertain. FACTORS THAT MAY AFFECT FUTURE TAX CHARGES FACTORS AFFECTING CURRENT YEAR TAX CHARGE The reasons for the difference between the actual tax charge for the year and the standard rate of corporation tax in the UK  applied to losses for the year are as follows: 2014  $000 2013  $000 Loss before and after taxation (3,888) 2,955 Standard rate corporation tax charge at 21.5% (2013 – 23%) (836) (687) Expenses not deductible for tax purposes  466 484 Capital allowances in excess of depreciation  2 2 Unrelieved tax losses arising in the period 368 201 Small companies relief – – Total current and deferred tax for the year – – 2014  $000 2013  $000 UK corporation tax on loss for the year at 21.5% (2013 – 23%) – 178 Adjustments recognised in the current year in relation to the current tax of prior years – Total current and deferred tax for the year – 178 9 TAX EXPENSE CURRENT TAX EXPENSE FINANCE INCOME 8 FINANCE INCOME AND EXPENSE FINANCE EXPENSE  2014  $000 2013  $000 Bank interest received 59 71 59 71  2014  $000 2013  $000 Foreign exchange loss 910 207 910 207