55Spire Healthcare Limited Partnership(ii) Factors affecting the tax charge/(credit)The effective tax assessed for the year, all of which arises in the UK, differs from the standard rate of corporation tax in the UK of 28%. The differences are explained below.2010£0002009£000Loss before taxation(51,304)(64,203)Tax credit on loss at 28% (2009: 28%)(14,365)(17,977)Effects of:Income/expenses not deductible for tax purposes11,8287,028Losses carried forward (not booked as an asset)-1,550Difference in tax rates174-Adjustments to prior years(145)(6,793)Losses carried forward (utilised) and other items not recognised as deferred tax assets3,990(7,384)Total tax charge/(credit) for the year1,482(23,576)Subsidiary undertakings of the Group have unused capital allowances totalling £150 million (2009: £124.9 million) to offset against future trading profits.  Subsidiary undertakings of the Group have losses carried forward totalling £73.2 million (2009: £80.5 million) to offset against future trading profits. Deferred tax assets have been recognised in respect of the trading losses to the extent they will be utilised in the next year or can be matched against appropriate deferred tax liabilities.9. Intangible assetsGoodwill£000CostAt 1 January 2009 and 1 January 2010511,150Amounts recognised from business combinations occurring in the year3,739At 31 December 2010514,889Net Book ValueAt 31 December 2010 514,889At 31 December 2009 511,150The goodwill arising on acquisitions is reviewed annually for impairment or when there is an event that may indicate impairment. The directors do not believe that any impairment is required in the financial period.

56Spire Healthcare Annual Review 2010Spire Healthcare Limited PartnershipNotes to the financial statementsFor the year ended 31 December 20109. Intangible assets continuedThe fair value of the assets and liabilities acquired via business combinations in the year were as follows:Acquiree's book value£000Fair value adjustment£000Acquisition amount£000Leasehold properties1,801(5)1,796Equipment464(63)401Stocks271-271Debtors & prepayments381-381Cash130-130Deferred tax asset-5555Creditors, accruals and other liabilities(360)(313)(673)Net identifiable assets and liabilities2,687(326)2,361Goodwill3,739Total purchase price for operating assets6,100Impairment testingGoodwill brought forward arose principally from three separate acquisitions and has been allocated to three cash-generating units. In 2007 £422.5 million was allocated to Spire 1 and in 2008 £82.6 million was allocated to Spire 2 and £6 million to Spire Thames Valley Hospital.In 2010 goodwill of £3.7 million arose from the acquisitions of London Fertility Centre, The Richard Villar Practice and The London Cognitive Behaviour Therapy Centres, further details of which are provided in note 27.The recoverable amount of each cash-generating unit was calculated as at 31 December 2010 by reference to its value in use, which in each case exceeded its carrying value and therefore no impairment provision is required. In order to evaluate the value in use, management utilised the cash flows from the 2010 three-year plan approved by the Board of Directors, which was extended to cover the five year period 2011-2015.Management identified a number of key assumptions over the period of the forecasts which determine the run rate of earnings before interest, tax, depreciation and amortisation (EBITDA). Revenue growth is projected to average 5.5% for the five year period and is impacted by an interaction of a number of elements of the operating model, including pricing trends, volume growth and the mix and complexity of discharges. These variables are interdependent and the forecast cash flows reflect management's expectations based on current market trends. Cost assumptions are consistent with the Group's historic track record, after taking account of a conservative level of inflationary increase, assuming that headline inflation is at 2.5% and delivering further efficiencies that can be achieved as the Group continues to build scale and volume.A long-term growth rate of 2.25% (2009: 2.25%) has been applied to cash flows beyond 2015, which is based on historic growth rates achieved by the sector, which have typically exceeded RPI. Pre-tax discount rates were based on the capital asset pricing model, utilising a sector-specific Beta in arriving at the equity premium and cost of debt based on current bank lending rates. For each cash-generating unit, a specific pre-tax discount rate was calculated to reflect the profile of cash flows inherent to that specific cash-generating unit and these were in the range of 10.5%-11.0% (2009: 10.5% -11.3%).The recoverable amount from each acquisition is based on cash flow forecasts that reflect the assumptions stated above. As at the balance sheet date, it is not considered to be reasonably possible that circumstances will change so that the key assumptions made in assessing the recoverable amount relating to each of the acquisitions will be revised to the point where the goodwill equals the carrying amount.