b'Mercia Asset Management PLC105Annual Report and Accounts 202125. Deferred taxationas at As at31 March 31 March2021 2020000 000Deferred tax liability 3,372 3,812Under IAS 12, Income Taxes, provision is made for the deferred tax liability associated with the recognition of the intangible asset arising on the acquisition of the VCT fund management business. This has been recognised at 19% of the fair value of the fund management contracts at acquisition and is reassessed at each year end, with the movement being recognised in the consolidated statement of comprehensive income.As at 31 March 2021, a deferred tax liability of 3,372,000 (2020: 3,812,000) is recognised. Of this amount 3,372,000 (2020: 3,758,000) is in respect of the intangible asset arising on the acquisition of the VCT fund management business and nil (2020: 54,000) is in respect of the intangible asset arising on the acquisition of Enterprise Ventures due to it being fully amortised in March 2021.26. Issued share capital31 March 2021 31 March 2020 Strategic report Governancenumber 000 Number 000allotted and fully paidAs at the beginning of the year 440,109,707 4 303,309,707 3Issue of share capital during the year 136,800,000 1as at the end of the year 440,109,707 4 440,109,707 4On 20 December 2019, 120,000,000 new Ordinary shares of 0.00001 each were issued at a price of 25.0 pence per share via a placing which raised 30,000,000 (before share issue costs). These new shares were admitted to trading on AIM on 23 December 2019. Financial statementsOn 23 December 2019, 16,800,000 new Ordinary shares of 0.00001 each were issued at a price of 25.0 pence per share as part of the initial consideration for the acquisition of the VCT fund management business. These new shares were admitted to trading on AIM on 27 December 2019.Each Ordinary share is entitled to one vote and has equal rights as to dividends. The Ordinary shares are not redeemable.27. Share premiumas at As at31 March 31 March2021 2020000 000As at the beginning of the year 81,644 49,324Premium arising on the issue of Ordinary shares34,199Cost of share capital issued(1,879)as at the end of the year 81,644 81,644The premium on the issue of Ordinary shares in the prior year arises from the placing of 120,000,000 new Ordinary shares of 0.00001 each issued at a price of 25.0 pence per share on 20 December 2019 and 16,800,000 new Ordinary shares of 0.00001 each issuedat a price of 25.0 pence per share on 23 December 2019 as part of the initial consideration for the acquisition of the VCT fund management business.'