Group Finance Director's Report
Taxation
Changes in corporation tax rates have resulted in a reduction to the deferred tax net liabilities of the Group of £178m at December 2007, which has been excluded from our underlying results.
The tax charge for the year of £1,365m (2006 £1,772m) includes £18m (2006 £220m) in respect of the tax charge levied on life companies for policyholder tax and a decrease of £178m in respect of the change in the corporation tax rate. Excluding these items results in an effective rate of 28.0% (2006 28.3%). Included within the tax charge of £1,365m was overseas tax of £293m (2006 £206m).