Notes to the Accounts
8. Taxation
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| all figures in £ millions | 2001 | 2000 |
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| UK | ||
| Corporation tax for the period at 30% | 19 | 40 |
| Adjustments in respect of prior periods | (153) | (13) |
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| (134) | 27 | |
| Double taxation relief | – | (1) |
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| (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 |
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| (67) | 106 | |
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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.
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| all figures in percentages | 2001 | 2000 |
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| 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) |
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| Tax rate reflected in adjusted earnings (before internet enterprises) | 24.1 | 23.0 |
| Effect of internet enterprises | 7.0 | 3.1 |
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| 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 |
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| Tax rate reflected in earnings | 15.3 | 37.3 |
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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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