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  Pearson Annual Report 2001    

Notes to the Accounts

   
 

8. Taxation




all figures in millions 2001 2000



UK    
Corporation tax for the period at 30% 19 40
Adjustments in respect of prior periods (153) (13)



  (134) 27
Double taxation relief (1)



  (134) 26
Deferred taxation (see note 22) (4) (1)
Joint ventures 6 (6)
Associates 6
Overseas    
Overseas taxation for the period 55 70
Deferred taxation (see note 22) 1 (3)
Associates 9 14



  (67) 106



Included in the adjustment in respect of prior periods in 2001 is a tax benefit of 143m relating to a prior period disposal of a subsidiary undertaking and a fixed asset investment.




all figures in percentages 2001 2000



Tax rate reconciliation    
UK tax rate 30.0 30.0
Effect of overseas tax rates 6.8 2.2
Effect of utilisation of tax losses in the US (10.8) (7.8)
Other items (1.9) (1.4)



Tax rate reflected in adjusted earnings (before internet enterprises) 24.1 23.0
Effect of internet enterprises 7.0 3.1



Tax rate reflected in adjusted earnings (after internet enterprises) 31.1 26.1
Effect of (losses)/profits excluded from adjusted earnings (15.8) 11.2



Tax rate reflected in earnings 15.3 37.3



note The Group has significant tax losses available in the US which are not recognised in the accounts and hence the tax rate reflected in adjusted earnings is lowered.

 

 
 

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