b'Strategic report Governance Financial statementsChanges to the UK corporation tax rates were substantively enacted as part of Finance Bill 2015 (on 26 October 2015) and Finance Bill 2016 (on 7 September 2016). These included reductions to the main rate of corporation tax to 19% from 1 April 2017 and to 17% from 1 April 2020. Further changes to the UK corporation tax rates were substantively enacted as at 31 March 2020, in Finance Bill 2020 (on 11 March 2020), which included increasing the main rate of corporation tax from 17% to 19% from 1 April 2020.Deferred tax at the balance sheet date has been measured using these revised rates and reflected in these consolidated financial statements.As at 31 March 2020, a deferred tax liability of 3,812,000 (2019: 109,000) has been recognised in respect of the intangible assets arising on the acquisition of the VCT fund management business of NVM Private Equity LLP in December 2019 and the acquisition of the entire issued share capital of Enterprise Ventures in March 2016. A potential deferred tax asset of 7,210,000 (2019: 5,995,000) for cumulative unrelieved management expenses and other tax losses has not been recognised in these consolidated financial statements as it is not considered sufficiently probable that the Group will generate sufficient taxable profits from the same trade to recover these amounts in full.12. Loss per shareBasic loss per share is calculated by dividing the loss for the financial year by the weighted average number of Ordinary shares in issue during the year. Diluted loss per share is calculated by dividing the loss for the financial year by the weighted average number of Ordinary shares outstanding and, when dilutive, adjusted for the effect of all potentially dilutive shares, including share options on an as-if-converted basis. The potential dilutive shares are included in diluted earnings per share calculations on a weighted average basis for the year. The loss and weighted average number of shares used in the calculations are set out below:Year ended Year ended31 March 31 March2020 2019(Loss)/profit per Ordinary share(Loss)/profit for the financial year (000) (17,454) 2,620Weighted average number of Ordinary shares (basic) (000) 341,401 303,310Weighted average number of Ordinary shares (diluted) (000) 341,627 305,018(Loss)/earnings per Ordinary share basic and diluted (pence) (5.11) 0.86The calculation of basic and diluted loss per share is based on the following data:Year ended Year ended31 March 31 March2020 2019000 000Weighted average number of sharesBasic 341,401 303,310Dilutive impact of share options 226 1,708Diluted 341,627 305,01813. Business combinationsThe Group consists of Mercia Asset Management PLC and its subsidiary undertakings. Note 39 to the Companys financial statements lists details of the Companys subsidiary undertakings.On 23 December 2019 Mercia completed the acquisition of the VCT fund management business of NVM Private Equity LLP (NVM) for a total maximum consideration of 25,000,000 comprising a combination of cash and new Ordinary Mercia shares. The fair value of the identifiable net assets acquired and the consideration payable under IFRS 3 are as follows:Fair value000Fund management contracts intangible asset 20,331Goodwill 6,314Deferred tax liability arising on intangible asset (3,863)Total identifiable net assets 22,782Mercia Asset Management PLC 91Annual Report and Accounts 2020'