Notes to the accounts

Notes to the accounts list

10 Administrative expenses and depreciation

	2005 £m	2004 £m
Staff costs
Wages and salaries	82	77
Social security costs	10	11
Other pension costs	15	15
	107	103
Other administrative expenses	61	55
Depreciation	4	5
Total administrative expenses	172	163
Total administrative expenses have been allocated as follows:
Revenue reserve	78	72
Capital reserve	94	91
	172	163

The average monthly number of employees during the year was 763 (2004: 833). In addition to the staff costs shown above, the amounts shown in note 4 have been charged against capital profits in respect of carried interest and investment performance plans.

Costs associated with making and managing investments were allocated to revenue and capital profits based on the expected split of returns between revenue and capital. This split is expected to be 30% revenue and 70% capital.