Thames Water defers corporation tax 'for a decade'

Thames Water, the UK's biggest water company, does not expect to pay any more corporation tax for up to a decade, it said, as an above-inflation rise in bills saw its profits rise by nearly a fifth.

The firm says its infrastructure investments of £1 billion a year over the next seven to 10 years mean it will be able to defer £20 million a year in tax liabilities.

The firm, which is at loggerheads with regulator Ofwat over customer charges, has already built up a deferred tax bill of £855.6 million and its latest plans will see this rise to more than £1 billion.