Notes to the Financial Statements

15 Tax On Profit On Ordinary Activities

		£m
15(a) Technical account long term business	Year to 31 December 2004	Year to 31 December 2003
Current tax
South Africa	211	162
United States	11	4
Rest of World	1	3
	223	169
	40	58
Deferred tax	263	227

		£m
15(b) Non-technical account insurance, asset management and banking businesses	Year to 31 December 2004	Year to 31 December 2003
United Kingdom tax
UK corporation tax	51	34
Double tax relief	(47)	(24)
	4	10
Overseas tax
South Africa	72	33
United States		11
Rest of World	5	4
Secondary tax on companies (STC)	10	14
	87	62
Adjustment in respect of prior periods	1	(8)
Current tax for the year	92	64
Current tax attributable to shareholders profits on long term business	162	127
Total current tax on ordinary activities	254	191
Deferred tax non-technical account	(8)	(8)
Deferred tax attributable to shareholders profits on long term business	40	58
Reported tax charge	286	241
The reported tax charge is analysed as follows:
Adjusted operating profit	240	224
Restructuring and integration costs	(6)	(6)
Change in credit provisioning methodology	-	(26)
Short term fluctuations in investment return	60	49
Fines and penalties	(8)	-
	286	241

		£m
15(c) Reconciliation of tax charge	Year to 31 December 2004	Year to 31 December 2003
Tax at UK rate of 30.0% (2003: 30.0%) on profit on ordinary activities before tax	262	133
Untaxed and low taxed income (including tax exempt investment return)	(83)	(113)
Disallowable expenditure	97	179
STC	10	14
Timing differences	(32)	(50)
Other	-	28
Current tax charge	254	191