Source - SMW
Halma expects US tax reforms to have a positive impact on its future US after tax adjusted earnings, due to the reduction in the federal corporate income tax rate from 35% to 21%.

Halma said: 'For the year to 31 March 2018 we currently anticipate that the announced changes will have a small positive impact on the Group effective tax rate on adjusted profits which we have previously guided will be in line with the H1 effective tax rate of 22.3%.  

'For the year to 31 March 2019 we currently anticipate (based on the existing mix of adjusted profits) that the changes will reduce the Group effective tax rate on adjusted profits to approximately 20%.

'We also expect that the changes will result in a one-off non-cash tax credit for the year to 31 March 2018 relating to the revaluation of US deferred tax assets and liabilities.  

'This credit is expected to be approximately £15m based on our net US deferred tax liabilities at 1 April 2017.

'The ultimate impact of the Act is subject to complex provisions in the legislation with further guidance and clarifications expected to be issued by the US authorities.  

'We will continue our review and give updated guidance on the impact of these provisions together with our final results in June 2018.

'We also expect that the changes will result in a one-off non-cash tax credit for the year to 31 March 2018 relating to the revaluation of US deferred tax assets and liabilities.  

'This credit is expected to be approximately £15m based on our net US deferred tax liabilities at 1 April 2017.'


At 9:44am: (LON:HLMA) Halma PLC share price was +4.5p at 1285.5p