16 Reconciliation of shareholder net worth (SNW).

1.

On an [EEV] basis the contingent loan (between [Society] and [LGPL]) is modelled within the [VIF]. On an [IFRS] basis the contingent loan asset is included within the Group capital and financing net assets.

2.

Deferred tax represents all tax which is expected to be paid under current legislation.

3.

Other in the UK covered business relates primarily to the different treatment of sterling reserves, other long term reserves and the non profit result of LGPL under EEV compared with IFRS. Total business also includes the different treatment of the US Triple X securitisation on an EEV and IFRS basis.