Focus and vision for 150 years..... - Thomson Reuters

NOTES ON THE CONSOLIDATED PROFIT AND LOSS ACCOUNT continued
4. TAXATION ON PROFIT ON ORDINARY ACTIVITIES
2000 1999 1998
£M £M £M
UK corporation tax
Current tax on income for the period 292 91 53
Adjustments in respect of prior periods (40) 9 3
252 100 56
Double taxation relief (264) (14) (10)
(12) 86 46
Foreign tax
Current tax on income for the period 133 103 152
Share of joint ventures and associates tax 1 – –
Adjustments in respect of prior periods 15 7 (9)
149 110 143
Deferred taxation (see note 24) (12) 11 7
125 207 196
Reconciliation to the UK nominal tax rate:
Effective tax rate 19.0% 32.7% 33.8%
UK nominal tax rate 30.0% 30.3% 31.0%
Taxes as shown in these financial statements 125 207 196
Corporation tax on pre-tax profit at UK nominal rate 197 191 180
Difference (72) 16 16
The difference is principally due to:
Non-tax deductible amortisation of goodwill 21 17 16
Book profit on TSI public share issues not taxable (47) (16) –
Tax deduction arising from exercise of employee options (60) (1) –
Other differences 14 16 –
(72) 16 16
The other differences are primarily due to overseas profits taxed at rates differing from those in the UK and the geographical mix of profits.
Included in the tax charge of £125 million is tax of £34 million arising on the profit on disposal of fixed asset investments and partial disposal
of subsidiary and associated undertakings.
Unrealised gains on disposals of fixed asset investments are net of tax of £3 million.
44 Reuters Group PLC Annual Report and Form 20-F 2000