Interim Management Statement

British Assets Trust PLC
23 January 2008



British Assets Trust plc


Interim Management Statement


For the Three Month Period 1 October 2007 to 31 December 2007


Investment Objective



British Assets Trust plc aims to achieve a total return in excess of a composite
index, weighted as to 75 per cent FTSE All-Share Index and 25 per cent FTSE
World (ex UK) Index, by investing principally in a diversified international
portfolio of equities and equity-related securities.  Within this overall
objective, the Company aims to maintain a progressive dividend policy which will
be dependent upon, inter alia, the rate of revenue growth within the investment
portfolio, and the level of dividend cover.



Performance Summary


                                                                     Three months to 31/12/07
Total Return1

Net asset value                                                                               0.9%
Composite Index2                                                                            (0.2)%

                                                                        As at                As at

Capital Values                                                       31/12/07              30/9/07

Share price (mid market)                                              136.00p              140.75p
Discount

 - Basic                                                                15.8%                12.8%

 - Debt adjusted                                                        14.4%                11.5%
Gearing

 - Net of cash3                                                         15.2%                15.0%

 - Equity gearing 4                                                      8.3%                 8.4%


Sources: F&C Investment Business Limited, Datastream.



1    All total returns are based on net dividends re-invested

2    Composite Index of 75 per cent FTSE All-Share Index and 25 per cent
     FTSE World (ex UK) Index

3    Gearing net of cash: investments/shareholders' funds

4    Equity gearing: equity investments/shareholders' funds



Review for the Period



The Company's net asset value total return for the three months ended 31
December 2007 was 0.9%. This compared favourably with a negative return of 0.2%
from the composite benchmark index of 75% FTSE All-Share Index and 25% FTSE
World (ex UK) Index.  Positive stock selection in the UK was the main driver of
outperformance during the quarter.



Stockmarkets were highly volatile in the closing months of 2007 following news
of more write-downs at leading banks exposed to US sub-prime lending. Having
improved in October, equity markets experienced a sharp correction in November
as risk aversion returned to heightened levels and liquidity between banks
tightened to create a second wave of the credit crunch that had dominated
financial markets in the summer.



Combined with some weaker economic data, which suggested that the effects of the
slowing housing market are starting to weigh on business and consumer spending
in the US, the credit crunch hurt investor sentiment in both credit and equity
markets. In the US, the Federal Reserve acted by cutting interest rates by 0.5%
to 4.25% and, in the UK, the base rate was cut by 0.25% to 5.5%. Although a
coordinated effort from central banks targeting year-end liquidity needs helped
to alleviate immediate concerns, the underlying issues have yet to be resolved.



Dividends



A third interim dividend in respect of the year ended 30 September 2007, of
1.356p per share, was paid on 5 October 2007 to shareholders on the register on
7 September 2007.



Share Buy Backs



During the period, the Company bought back 2,500,000 shares for cancellation for
a total consideration of £3.5 million.



Top Ten Holdings as at 31/12/07


Company                                Country                                  % of total assets

BP                                     UK                                                     5.3
Vodafone Group                         UK                                                     3.5
Royal Dutch Shell                      UK                                                     2.4
HSBC Holdings                          UK                                                     2.2
GlaxoSmithkline                        UK                                                     2.1
Royal Bank of Scotland Group           UK                                                     2.1
AstraZeneca                            UK                                                     2.0
Anglo American                         UK                                                     2.0
Centrica                               UK                                                     1.9
Unilever                               UK                                                     1.8

Total                                                                                        25.3



Geographical Analysis


                                                                     31/12/07              30/9/07

Country                                                     % of total assets     %of total assets

UK                                                                       60.4                 62.0
North America                                                            10.6                 10.3
Europe (ex UK)                                                            6.4                  6.5
Pacific (ex Japan)                                                        6.2                  4.9
Japan                                                                     3.2                  3.3
Corporate Bonds                                                           5.6                  5.3
Net Current Assets                                                        7.6                  7.7

Total                                                                   100.0                100.0



Since the end of the period there have been significant falls in global
stockmarkets as a result of increased concerns over the prospects for global
growth. The Board is not aware of any other significant events or transactions
which have occurred since 31 December 2007 and the date of publication of this
statement which would have a material impact on the financial position of the
Company.



Daily and Key Information



Further information regarding the Company, including daily net asset values
published since the end of the period and monthly factsheets, can be found at
the Company's website www.british-assets.co.uk, or at www.fandc.com.



For further information please contact:

Julie Dent/Gordon Hay Smith

F&C Investment Business Limited

Tel: [phone]


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