NOTES TO THE FINANCIAL STATEMENTS CONTINUED
7. PROFIT BEFORE TAXATION

1999

1998
£m £m
After charging/(crediting):
Directors' emoluments 3.6 3.0
Details of directors’ emoluments and interests are shown in the Report on the Directors' Remuneration and Related Matters
Net income under finance leases (9.2) (12.7)
Property rental income under operating leases (2.7) (2.8)
Other rental income under operating leases (69.7) (60.9)
Operating lease rental expense - Land and buildings 83.5 24.4
Operating lease rental expense - Plant, vehicles and equipment 31.2 24.3
Amortisation of goodwill 72.6
Depreciation of tangible and intangible fixed assets - Assets owned 181.8 115.7
Depreciation of tangible and intangible fixed assets - Assets under finance leases 15.6 15.8
Audit fees 1.6 1.2
Fees paid to the Group's auditors for non-audit services, including services relating to the sale and acquisition of businesses, amounted to £3.7m (1998 £3.4m).
8. TAX ON PROFIT ON ORDINARY ACTIVITIES 1999 1998
£m £m
United Kingdom Corporation tax at 31% (1998 31%) 95.6 159.7
Less: Double taxation relief (15.5) (32.6)
80.1 127.1
Overseas tax 39.2 48.9
Deferred tax 3.2 10.2
122.5 186.2
Prior years’ adjustments
Current tax 3.2 (1.4)
Deferred tax (2.0) 1.0
123.7 185.8
Group share of tax on profit of joint venture 1.5 2.5
Group share of tax on profits of associated undertakings 2.2 0.1
127.4 188.4
The tax charge includes the following amounts attributable to exceptional items:
Tax relief on closure of Argos Holland (3.3)
Tax on refund of VAT 7.3 21.8
Tax on sale of Superior Acceptance Corporation Limited 7.5
Tax relief on closure of the Canadian retail company (5.3)
4.0 24.0
The Group's effective rate of taxation has reduced this year from 30.2% to 28.3%. While the amortisation of goodwill on 1998/9 acquisitions does not affect tax relief, the Group has benefited from a corporate reorganisation which has enabled it to adopt a more efficient financial structure for both its recent acquisitions and existing subsidiaries.

9. PROFIT AFTER TAXATION
Profit after taxation includes £105.2m (1998 £257.8m) which is dealt with in the financial statements of the company. As permitted by Section 230 of the Companies Act, 1985 the Company has not presented its own profit and loss account.
10. DIVIDENDS ON ORDINARY SHARES 1999 1998
£m £m
Interim paid - 6.2p per share (1998 6.0p) 62.4 60.3
Final proposed - 14.4p per share (1998 14.0p) 144.8 140.9
Total - 20.6p per share (1998 20.0p) 207.2 201.2
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