Thames Water defends position on corporation tax

Thames Water, the UK's biggest water firm, paid no corporation tax this financial year despite making £145m in pre-tax profit.

The figures come in the wake of criticism by Jonson Cox, chairman of water industry watchdog Ofwat, who said the tax-reducing corporate structures of some water companies were "morally questionable.''

Simon Evans from Thames Water said the company has been allowed to defer paying tax because of the amount it invests.

''We make no apology for taking advantage of the capital allowances,'' he said.