Smith & Nephew said it expected to incur a corporate tax rate in the US in the range of 20%-to-21% following changes to country's tax regime.
That would market a reduction of four-to-five percentage points on its previous guidance of around 25%. "The one-time effects of US tax reform in 2017, including the revaluation of certain deferred tax balances, are not expected to be material and will be taken outside trading results," the company added. Separately, Smith & Nephew said it now expected its full-year tax rate on its 2017 trading results to be lower than previous guidance of around 22%.
The change was mainly due to the release of provisions, which were one-off in nature, as the company concluded and revised open tax issues, including the US tax audit as reported at the half year.
At 1:16pm: (LON:SN.) Smith Nephew PLC share price was +28.75p at 1264.25p