Diageo has cut its 2003 net income by £53m (US$97m) after a deferred tax charge amendment. The spirits company said yesterday that the amendment relates to the treatment of deferred tax associated with pension liabilities under US accounting rules.

The amendment results in a deferred tax charge of £53m being reclassified from other comprehensive deficit to net income, and a reversal of deferred tax of £118m previously charged to other comprehensive deficit.