Imperial Brands says that recently-announced changes to the US federal corporate tax rate are not expected to materially impact the group’s adjusted effective tax rate in the future.
‘The group benefits from substantial US tax amortisation of goodwill and intangibles which contributes to a relatively low adjusted effective tax rate,’ Imperial said in a note posted on its website yesterday.
‘For the year to 30 September 2018 we currently anticipate that the reduced taxation of US earnings will result in a benefit of less than one percent to the group adjusted effective tax rate. We continue to expect an overall adjusted effective tax rate for the group of around 20 percent.
‘The group’s US deferred tax assets and liabilities will be revalued to take account of the corporate tax rate changes. This is expected to result in a one-off credit of around £20m which will be treated as an adjusting item in the current year and will therefore not impact adjusted earnings.’
Relaxed over tax changes
