57 17Deferred taxation Deferred tax liabilities/( assets) are analysed as follows: Year endedYear ended 31 December31 December 20082007 £ 000£ 000 Temporary differences on: Property, plantand equipment324,826 310,009 Other( 2,970)( 1,387) 321,856 308,622 Deferred tax on property, plantand equipmenthas arisen on differences between the carrying value of the relevant assets and the tax base. Other deferred tax relates to temporary timing differences on non- specific bad debtprovisions and expense accruals. The movementfor the period in the netdeferred tax liability is as follows: Property, plantIntangible and equipmentassetsOtherTotal £ 000£ 000£ 000£ 000 22 August2007---- On acquisition of subsidiaries299,183 7,700 ( 45) 306,838 Recognised in income3,126 - ( 1,342) 1,784 Reclassified7,700 ( 7,700)- - At31 December 2007 and 1 January 2008310,009 - ( 1,387) 308,622 On acquisition of subsidiaries15,290 - - 15,290 Recognised in income( 473)- ( 1,583)( 2,056) At31 December 2008324,826 - ( 2,970) 321,856 18Derivative financial instruments 20082007 £ 000£ 000 Derivative financial liability215,29676,112 Further information regarding derivative liabilities is provided in note 27. Spire Healthcare Limited Partnership

58Spire Healthcare Annual Review 2008 19Trade and other payables 20082007 £ 000£ 000 Trade payables36,38720,085 Other payables10,32610,758 Taxation and social security4,3413,877 Accruals36,98147,862 88,03582,582 20Partners'accounts 20082007 £ 000£ 000 A units issued26,57622,000 B units issued3,6003,000 30,17625,000 The A units are owned by members of the managementteam and Cinven Funds and the B units are owned by the Spire Healthcare EBT. The A and B units rank pari passu. Additional A units issued in the year relate to the acquisition of Spire 2. 21Reconciliation of movements in equity Partners'Hedging Retained Total capital reserveearningsequity Group£ 000£ 000£ 000£ 000 Balance at22 August2007---- Effective portion of changes in fair value of cash flow hedges-( 75,231)-( 75,231) Loss for the period--( 53,113)( 53,113) Issue of capital25,000-- 25,000 Balance at31 December 200725,000( 75,231)( 53,113)( 103,344) Effective portion of changes in fair value of cash flow hedges-( 134,938)-( 134,938) Loss for the period--( 86,431)( 86,431) Issue of capital5,176-- 5,176 Employee benefittrust( note 22)--( 1,028)( 1,028) Balance at31 December 200830,176( 210,169)( 140,572)( 320,565) Spire Healthcare Limited Partnership Notes to the financial statements For the year ended 31 December 2008