International Financial Reporting Standards (IFRS) basis unaudited financial information

Notes on the IFRS basis results

E. Tax charge

The total tax charge of £251 million for the half year 2007 (half year 2006: £415 million; full year 2006: £1,241 million) comprises £37 million (half year 2006: £231 million; full year 2006: £698 million) UK tax and £214 million (half year 2006: £184 million; full year 2006: £543 million) overseas tax. This tax charge comprises tax attributable to policyholders and unallocated surplus of with-profits funds, unit-linked policies and shareholders. The tax charge attributable to shareholders of £253 million for the half year 2007 (half year 2006: £253 million; full year 2006: £392 million) comprises £95 million (half year 2006: £106 million; full year 2006: £142 million) UK tax and £158 million (half year 2006: £147 million; full year 2006: £250 million) overseas tax.

The tax credit related to discontinued operations, which is all attributable to shareholders, amounted to £19 million (half year 2006: £11 million; full year 2006: £45 million).

Amounts for deferred tax are determined using the current rate of tax or, where substantively enacted through the legislative process, the prospective rate. Accordingly, the deferred tax amounts for half year 2007 reflect the prospective change for the main UK corporation tax rate from 30 per cent to 28 per cent which is anticipated to be effective from 1 April 2008.