OTHER RESERVES (Tables)

12 Months Ended

Dec. 31, 2017

Other reserves [member]

OTHER RESERVES (Tables) [Line Items]

Disclosure of other reserves [text block]

	2017 £m			2016 £m			2015 £m
Other reserves comprise:
Merger reserve		7,766			7,766			7,976
Capital redemption reserve		4,115			4,115			4,115
Revaluation reserve in respect of available-for-sale financial assets		685			759			(438	)
Cash flow hedging reserve		1,405			2,136			727
Foreign currency translation reserve		(156	)		(124	)		(120	)
At 31 December		13,815			14,652			12,260

Merger reserve [member]

OTHER RESERVES (Tables) [Line Items]

Disclosure of Merger Reserve [text block]

The foreign currency translation reserve represents the cumulative after-tax gains and losses on the translation of foreign operations and exchange differences arising on financial instruments designated as hedges of the Group’s net investment in foreign operations.

	2017 £m		2016 £m			2015 £m
Merger reserve
At 1 January		7,766		7,976			8,107
Redemption of preference shares (note 40)		–		(210	)		(131	)
At 31 December		7,766		7,766			7,976

Movement in other reserves [Member]

OTHER RESERVES (Tables) [Line Items]

Disclosure of Movement in Other Reserves [text block]

Movements in other reserves were as follows:

	2017 £m			2016 £m			2015 £m
Revaluation reserve in respect of available-for-sale financial assets
At 1 January		759			(438	)		(67	)
Adjustment on transfer from held-to-maturity portfolio		–			1,544			–
Deferred tax		–			(417	)		–
		–			1,127			–
Change in fair value of available-for-sale financial assets		303			356			(318	)
Deferred tax		(26	)		(25	)		(18	)
Current tax		(4	)		(3	)		2
		273			328			(334	)
Income statement transfers:
Disposals (note 9)		(446	)		(575	)		(51	)
Deferred tax		93			196			3
Current tax		–			(52	)		(1	)
		(353	)		(431	)		(49	)
Impairment		6			173			4
Deferred tax		–			–			8
		6			173			12
At 31 December		685			759			(438	)

	2017		2016		2015
	£m		£m		£m
Cash flow hedging reserve
At 1 January	2,136		727		1,139
Change in fair value of hedging derivatives	(363	)	2,432		537
Deferred tax	121		(610	)	(186	)
	(242	)	1,822		351
Income statement transfers (note 5)	(651	)	(557	)	(956	)
Deferred tax	162		144		193
	(489	)	(413	)	(763	)
At 31 December	1,405		2,136		727

	2017		2016		2015
	£m		£m		£m
Foreign currency translation reserve
At 1 January	(124	)	(120	)	(78	)
Currency translation differences arising in the year	(21	)	(110	)	(59	)
Foreign currency gains on net investment hedges (tax: £nil)	(11	)	106		17
At 31 December	(156	)	(124	)	(120	)