Strategic report Governance Financial statements Other information SECTION 2: ASSETS AND LIABILITIES NOTES TO THE GROUP FINANCIAL STATEMENTS CONSOLIDATED STATEMENT OF FINANCIAL POSITION CONTINUED 2.6 Trade and other receivables continued At 30 June 2021, segregated deposit amounts held by the Group on behalf of clients in accordance with the client money rules of the Financial Conduct Authority amounted to £7,243 million (2020: In accordance with market practice and accounting standards on settlement date accounting, certain £7,506 million). In addition, there were pension trust and currency service cash accounts held on behalf balances with clients, Stock Exchange member firms and other counterparties totalling £704.8 million of clients not governed by the client money rules of £5,621 million (2020: £6,254 million). The client (2020: £642.0 million) are included in trade receivables. These balances are presented net where there retains the beneficial interest in both these deposits and cash accounts, and accordingly, they are not is a legal right of offset and the ability and intention to settle net. The gross amount of trade included in the statement of financial position of the Group. receivables is £936.0 million (2020: £865.8 million) and the gross amount offset in the statement of financial position with trade payables is £231.1 million (2020: £223.8 million). Other than counterparty Restricted cash balances relate to the balances held within the HL Employee Benefit Trust. These are balances, trade receivables primarily consist of fees and amounts owed by clients and renewal strictly held for the purpose of purchasing shares to satisfy options under the Group’s share option commission owed by fund management groups. There are no balances where there is a legal right of schemes. offset but not a right of offset in accordance with accounting standards, and no collateral has been 2.8 Deferred tax assets posted for the balances that have been offset. Given the short term nature of the Group’s receivables and the expectation of the Group in relation to Deferred tax assets arise because of temporary differences only. The following are the major deferred its counterparties, there has been no material expected credit loss recognised in the year – see note tax assets recognised and movements thereon during the current and prior reporting years. Deferred 5.7 for further details. tax has been recognised at either 19% or 25% depending upon the rate expected to be in force at the time of the reversal of the temporary difference.. The Group does not have any contract assets in respect of its revenue contracts with customers (2020: nil). Other deductible Fixed asset tax Share–based temporary 2.7 Cash and cash equivalents relief payments differences Total £m £m £m £m At 1 July 2019 0.3 3.3 0.2 3.8 Cash and cash equivalents comprise cash on hand and demand deposits that are readily Credit to income (0.2) 0.3 (0.1) – convertible to a known amount of cash, subject to insignificant changes in value and are considered Charge to equity – (1.2) 0.5 (0.7) to be holdings of less than three months or those over which the Group has an immediate right of At 30 June 2020 0.1 2.4 0.6 3.1 recall. The carrying amount of these assets is approximately equal to their fair value. Credit / (charge) to income 0.2 0.3 0.1 0.6 Credit / (charge) to equity – (0.2) 0.2 – Term deposits held by the Group on unbreakable terms greater than three months are classified as At 30 June 2021 0.3 2.5 0.9 3.7 financial assets and are shown in note 2.6. Deferred tax expected to be recovered or settled: Within 1 year after reporting date 0.1 0.9 0.8 1.8 Year ended Year ended >1 year after reporting date 0.2 1.6 0.1 1.9 30 June 2021 30 June 2020 £m £m 0.3 2.5 0.9 3.7 Cash and cash equivalents: Group cash and cash equivalent balances 443.5 232.8 Restricted cash – balances held by HL EBT 1.8 3.1 445.3 235.9 156 Hargreaves Lansdown Report and Financial Statements 2021