Published December 2025
Pearson is the world's lifelong learning company
https://plc.pearson.com
Tax report 2024
Our purpose 1
Introduction 2
Our global tax strategy 3
Financial h tax data 8
Questions h answers 11
Country by Country Report 13
Appendix 17
Tax report
Our purpose We help people realise the life they imagine through learning.At Pearson, our purpose is simple: to help people realise the life they imagine through learning.
Humans are born to learn. From our very first breath, we never stop learning. It's a vital force that fuels and transforms our lives. This belief sits at the heart of who we are and how we support people in their lifelong learning journeys. We create vibrant, enriching learning experiences that deliver far-reaching benefits, preparing people for a new era of life and work. Because when you learn more, you can do more, be more, and live more.
Our approach to tax 2024 Pearson plc 1
Tax report
This is the ninth annual tax report published by Pearson and continues our commitment to transparency and clarity in our sustainability reporting as it pertains to the tax we pay on business profits, and the contributions we make to the public finances in the countries we operate in.Stakeholders expect clarity and transparency and at Pearson we are committed to providing that. Our sustainability pillars; driving learning for everyone with our products, empowering our people to make a difference and leading responsibly for a better planet, directly support UN Sustainable Development Goals (SDGs) as outlined in our annual report. Tax is a powerful tool which can help achieve SDGs, and it can also spur inclusive and sustainable development in other ways. Fiscal policies can simultaneously mobilise resources, reduce inequalities, and promote sustainable consumption and production patterns.1
As a business we continually endeavour to find ways to improve our tax transparency and elaborate on our tax contributions in a way that is clear, practical, and relevant. This is important as tax contributions - from individuals as well as businesses
- are fundamental to a healthy society. These contributions are the lifeblood which fund vital public services, including education, as well as investment in infrastructure to fuel economic growth and promote a more equal society.
We continue to believe that, in line with our company values, we have an ongoing responsibility to enhance awareness and provide transparency on our position on tax. This core belief leads us to publish our ninth annual guide to the tax we pay on business profits around the world.
Since joining the B Team (an organisation that works with multinational companies committed to good tax practices) in 2018, we have endorsed their tax principles which have heightened expectations on how businesses approach tax and transparency, and are part of the B Team's Responsible Tax Working Group, which includes engagement with civil society organisations. Currently we are participating in the responsible tax principles accounting mechanism initiative whereby we will complete a responsible tax principles self-assessment and peer review in order to share our experiences and best practices and also understand areas of potential improvement.
Tax contributions
Businesses act as vehicles for both collecting/ remitting and directly paying taxes in the jurisdictions they operate in. Taxes collected are those which the business collects on behalf of the government in the relevant region, such as employees' social security taxes and sales taxes, which are then passed on to the tax authorities on behalf of the payer. Taxes paid are those the company directly suffers, such as employer's social security contributions and taxes on business profits. This report specifically focuses on tax paid on business profits.
Tax risk
We foster a risk-aware culture in decision-making and are committed to managing risk, including tax risk, in a proactive and effective manner. In this respect, our tax strategy is aligned with business and commercial strategy and tax decisions are evaluated within clear risk parameters. The tax team are responsible for reviewing principal risks and ensuring that tax risks are appropriately mitigated.
The main tax risks are highlighted below.
The Group is under assessment from the tax authorities in Brazil challenging the deduction for tax purposes of goodwill amortisation for the years 2012 to 2020. Similar assessments may be raised for other years. Potential total exposure (including possible interest and penalties) could be up to BRL 1,372m (£183m) up to 30 June 2025, with additional potential exposure of BRL 46m (£6m) in relation to deductions expected to be taken in future periods. Such assessments are common in Brazil. The Group believes that the likelihood that the tax authorities will ultimately prevail is low and that the Group's position is strong. At present, the Group believes no provision is required.
The Group is currently under audit in several countries. As at 31 December 2024, a provision is held in relation to these totalling
£60m. In most countries, tax years up to and including 2018 are now statute barred from examination by tax authorities, however, a balance of £16m relates to certain remaining open issues.
Of the remaining £44m balance, £21m relates to 2019, £9m to 2020, £6m to 2021, £3m to 2022, £3m to 2023 and £2m to 2024. The tax authorities may take a different view from management and the final liability may be greater or lower than provided.
The State Aid provision of £63m has been released as a result of the Court of Justice of the European Union ('CJEU') handing down its decision on 19 September 2024 determining that the United Kingdom controlled foreign company group financing partial exemption ('FCPE') did not constitute State Aid. During the first half of 2025, the Group received a £97m repayment from HMRC in respect of the State Aid matter, with an additional
£17m of associated interest also received in the period.
Our intention is for our tax reporting to help stakeholders better understand how Pearson operates. We are committed to continuing to strengthen our reporting and, as always, welcome comments and feedback on how we might improve.
1. Taxation and the SDGs | Financing for Sustainable Development Office (un.org)
Our approach to tax 2024 Pearson plc 2
Option 1
Our global tax strategy
Tax report
Our global tax strategy applies to all our businesses, including the UK, and this document therefore covers our obligation to publish our UK tax strategy1 including governance, risk management, attitude to tax planning and being transparent with the UK and other tax authorities. Our approach to tax is guided by our corporate values and by our Code of Conduct. Our tax principles have been published on our corporate website since 2014, and they guide tax strategy at Pearson.1. Paragraph 16 Schedule 19 Finance Act 2016
Our approach to tax 2024 Pearson plc 3