REUTERS GROUP PLC ANNUAL REPORT AND ACCOUNTS 1999

4. Taxation on profit on ordinary activities1999 1998 1997£M £M £MUK corporation taxCurrent tax on income for the period 91 53 100Adjustments in respect of prior periods 9 3 (3)100 56 97Double taxation relief (14) (10) (9)86 46 88Foreign taxCurrent tax on income for the period 103 152 130Adjustments in respect of prior periods 7 (9) 5110 143 135Taxes on return of capital to shareholders – – 23Deferred taxation 11 7 (10)207 196 236Reconciliation to the UK nominal tax rate:Effective tax rate 32.7% 33.8% 37.7%UK nominal tax rate 30.3% 31.0% 31.5%Taxes as shown in these financial statements 207 196 236Corporation tax on pre-tax profit at UK nominal rate 191 180 197Difference 16 16 39The difference is principally due to:Non-tax deductible amortisation of goodwill 17 16 16Taxes on return of capital to shareholders – – 23Other differences (1) – –16 16 39The 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 £207 million is tax of £7 million arising on the profit on disposal of fixed asset investments and the partial disposal of a subsidiaryundertaking.5. Dividends1999 1998 1997£M £M £MInterim 52 48 50Final (1999 proposed) 154 155 140206 203 1901999 1998 1997Per ordinary share PENCE PENCE PENCEInterim 3.65 3.4 3.1Final (1999 proposed) 11.00 11.0 9.914.65 14.4 13.0Reuters Group PLC Annual Report 1999 49