19 Current and deferred tax

The components of taxes are as follows:

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									2007			2006
									Assets		Liabilities	Assets			Liabilities
									£m		£m	£m			£m
Current tax									518		1,311	557			1,020
Deferred tax									2,334		1,726	2,005			1,523

Deferred taxes are calculated on all temporary differences under the liability method. The movement on the deferred tax account is as follows:

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											2007		2006
											£m		£m
At beginning of year											482		(14)
Income statement credit/(charge)											393		(4)
Equity
Available for sale investments											13		4
Cash flow hedges											(132)		128
Share-based payments											(63)		24
Other equity movements											(125)		48
Acquisitions and disposals											33		264
Exchange and other adjustments											7		32
At end of year											608		482

Deferred tax assets and liabilities are attributable to the following items:

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											2007		2006
											£m		£m
Deferred tax liabilities
Accelerated tax depreciation											803		705
Available for sale investments											101		116
Cash flow hedges											51		–
Other											771		702
Deferred tax liabilities											1,726		1,523
Deferred tax assets
Pensions and other retirement benefits											491		622
Allowance for impairment on loans											108		69
Other provisions											377		436
Cash flow hedges											44		91
Tax losses carried forward											215		1
Share-based payments											428		380
Other											671		406
Deferred tax assets											2,334		2,005
Net deferred tax asset											608		482
Disclosed as deferred tax liabilities											855		282
Disclosed as deferred tax assets											1,463		764
Net deferred tax asset											608		482