Taxation

As a consequence of the Group’s conversion to REIT status, income and capital gains from our qualifying property rental business are now exempt from UK corporation tax. Accordingly, the tax charge for the period has fallen to £8.2m (six months ended 30 September 2006: £318.4m including £269.0m of deferred tax on revaluation gains), representing tax payable on ‘residual’ trading and other taxable activities, the majority of which arose in Trillium.