: notes to the accounts :

12. Tangible fixed assets

Freehold and leasehold property Net book value includes: freehold of £113m (1998: £133m) and short leases of £41m (1998: £38m).

Depreciation Fixed assets are depreciated over their estimated economic lives in equal annual amounts. Generally, freeholds are depreciated at 1% to 5% per annum, leaseholds at 2% per annum, or over the period of the lease if shorter, and plant and equipment at various rates between 5% and 33% per annum. Land, amounting to £32m, is not depreciated.

Capital commitments The Group had capital commitments for fixed assets, including finance leases, already under contract amounting to £20m at 31 December 1999.

Other notes The net book value of Group tangible fixed assets includes £23m in respect of assets held under finance leases. Depreciation on these assets charged in 1999 was £2m (1998: £1m).