b'Annual Report & Accounts 2022 Mercia Asset Management PLC 9922. Deferred considerationAs at As at31 March 31 March2022 2021000 000Payable within one year 2,869 1,578Payable within two to five years2,8692,869 4,447On 23 December 2019, Mercia completed the acquisition of the Northern VCT fund management business for a total maximum consideration of 25,000,000 comprising a combination of cash and new Ordinary Mercia shares. The initial consideration was 16,600,000, with deferred consideration of up to 8,400,000 also being payable, contingent upon certain conditions being met.The deferred consideration comprises 6,300,000 in cash, payable in three equal instalments following the first, second andFinancial statementsthird anniversaries of completion, provided that no termination notice has been served by any of the Northern VCTs before each respective anniversary payment date, in addition to 2,100,000 payable in new Ordinary Mercia shares on the third anniversary. In December 2020 and December 2021, the first and second cash instalments of 2,100,000 respectively, were paid by the Group.Half of the deferred consideration shares will be payable if the Group has received at least 16,000,000 in fund management fees in respect of the Northern VCT contracts (excluding performance fees) during the three years post completion. The remaining 50% of the deferred consideration shares will be allotted and issued if, during the same three-year period, the Northern VCTs collectively raise at least 60,000,000 in new capital. If either or both of these conditions are met, the number of new Ordinary shares to be issued to satisfy the deferred share consideration will be calculated based on the average of the daily closing mid-market price for an Ordinary Mercia share, for each of the five days immediately preceding the date of issue. The fair value of the deferred consideration is based on a weighted probability of outcomes over the remaining period discounted by 10%. The fair value movement in deferred consideration during the year resulted in a charge to the income statement of 522,000 (2021: 365,000).23. Deferred taxationAs at As at31 March 31 March2022 2021000 000Deferred tax liability 3,928 3,372Under 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. As at 31 March 2022, the deferred tax liability has been calculated using the substantively enacted tax rate of 25% - see note 10 for further detail.24. Issued share capital31 March 2022 31 March 2021Number 000 Number 000Allotted and fully paidOrdinary shares 440,109,707 4 440,109,707 4Each Ordinary share is entitled to one vote and has equal rights as to dividends. The Ordinary shares are not redeemable.'