- IHG said it will benefit from US corporation tax cut from 35% to 21%
- It will reduce its effective tax rate ‘by mid to high single digit percentage points’
The hotel group behind Holiday Inn and Crowne Plaza has cheered Donald Trump’s tax reforms, which it said will reduce the amount it pays out to the US government next year.
InterContinental Hotels Group said in a stock exchange announcement that the corporation tax cut from 35 per cent to 21 per cent will reduce its effective tax rate ‘by mid to high single digit percentage points’ from January.
IHG, which is listed on the FTSE 100 but whose biggest market is the US where it counts nearly 4,000 hotels, saw shares rise 1.5 per cent, or 68p to 4,674p in morning trading.
US reform boost: London-listed IHG said it will pay less tax next year thanks to new reforms
The hotel group said it also expected that the measures, which include incentives to encourage business investment, will result in a ‘significant, exceptional tax credit’ in the financial year the bill is signed into law.
Another London-listed company – IQE, which makes chips used by the iPhone X’s facial recognition system- said yesterday it was set to get a boost from the major US tax reforms pushed through by Trump.
The House passed the massive $1.5trillion (£1.2trillion) package yesterday. It affects everyone’s taxes but is dominated by breaks for business and higher earners.
In fact, the revamp will bring generous tax cuts for corporations and the wealthiest Americans while only providing smaller cuts for middle and low-income families.
Democrats call the legislation a boon to the rich that leaves middle-class and working Americans behind. It is the first major overhaul of the nation’s tax laws since 1986.
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