Taxation
The overall tax charge on the profits before tax was £83 million (1999 £74 million), a rate of 50 per cent (1999 21 per cent). This relatively high overall Group tax rate is mainly due to the impact of goodwill charged against profits for which no tax relief is available. The rate is also affected by losses in certain overseas businesses for which tax relief will only be available against future profits in the same jurisdiction. No relief has been taken for such losses in the accounts.

The tax charge on underlying profits at 22.8 per cent reflects the benefit of timing differences where full deferred tax has not been provided, and the writeback of Advance Corporation Tax (ACT) of £18 million, written off in previous years. The remainder of the Group's previously unrecognised surplus ACT has been offset against UK corporation tax payable in the balance sheet.