Notes to the Financial Statements

for the year ended 31 December 2004

24 Other Assets

			£m
	Notes	At 31 December 2004	At 31 December 2003
Insurance and other assets
Deferred tax asset	24(a)	309	253
Other		116	79
		425	332
Banking
Customer indebtedness for acceptances		139	70
Deferred tax asset	24(c)	109	256
Derivative contracts - positive value	46(e)	1,742	1,720
Other		466	350
		2,456	2,396

Other assets include £1,742 million (R18,893 million) (2003: £1,720 million (R20,531 million)) that reflects the positive value of on-balance sheet trading derivative instruments. The negative value of these contracts is included within other liabilities.

		£m
24(a) Deferred tax asset - insurance and other assets	At 31 December 2004	At 31 December 2003
At beginning of year	253	323
Net credit for the year	69	4
Foreign exchange and other movements	(13)	(74)
At end of year	309	253

The deferred tax asset arises as a result of:
Insurance funds	156	69
Unrelieved tax losses	31	23
Accelerated capital allowances	27	47
Short term timing differences	95	114
	309	253

The recovery of £309 million (R3,352 million) (2003: £253 million (R3,020 million)) of the total deferred tax asset above is dependent upon future taxable profits.

		£m
24(b) Deferred tax asset, unrecognised - insurance and other assets	At 31 December 2004	At 31 December 2003
Unrelieved tax losses	66	71
Accelerated capital allowances	33	44
Insurance funds	7	3
Short term timing differences	33	15
	139	133

The unrecognised deferred tax assets will be recognised when appropriate taxable profits are reasonably expected to arise in the relevant jurisdictions.

		£m
24(c) Deferred tax asset - banking	Year to 31 December 2004	Year to 31 December 2003
At beginning of year	256	50
Net (charge)/credit for the year	(29)	7
Foreign exchange and other movements	(118)	199
At end of year	109	256

The deferred tax asset arises as a result of:
Unrelieved tax losses	235	189
Short term timing differences	(146)	7
Other timing differences	190	60
	109	256

Other movements includes an adjustment of £169 million (R1,989 million) based on reclassification of deferred tax on structured finance transactions. There is a matching adjustment to the deferred tax liability accordingly.

There were unrecognised banking deferred tax assets at 31 December 2004 of £18 million (R198 million) relating to unrelieved tax losses (2003: nil).