Which UK-listed stocks are affected by US tax reform?

We look at some of the firms affected by changes on the other side of the Atlantic
Thursday 11 Jan 2018 Author: Tom Sieber

The green light for US tax reform is a potential boost for several UK-listed businesses with significant US operations.

Some are taking hefty charges as they recalculate deferred tax assets. However, these one-off charges will have no cash impact and a cut in corporation tax from 35% to 21% is expected to provide a long-term boost.

4imprint (FOUR) – The 97% US-based promotional products firm sees no 2017 impact but its tax rate is expected to fall from 30% to low 20s going forward.

Barclays (BARC) – The bank faces a £1bn hit in its 2017 financial year.

BP (BP.) – The oil major flags a $1.5bn one-off charge in its fourth quarter 2017 results but there should be a future positive impact.

CRH (CRH) – Stockbroker Davy sees 5% earnings boost to building materials firm CRH.

Keller (KLR) – It expects to have a one-off $10m credit, plus a reduction in future effective tax rate by 5% to high 20s.

Melrose (MRO) – The industrial buy-out specialist sees no impact in 2017. A reduction in 2018 effective tax rate to 24% would be beneficial to asset valuations, as well as potentially cutting any tax liability should it sell part of its Nortek business.

Royal Dutch Shell (RDSB) – The Anglo-Dutch oil firm highlights $2bn to $2.5bn charge in Q4.

Somero (SOM:AIM) – FinnCap has upgraded 2018 earnings at construction equipment group by 19.7% as a result of the US tax reform.

‹ Previous2018-01-11Next ›

Important information:

These articles are provided by Shares magazine which is published by AJ Bell Media, a part of AJ Bell. Shares is not written by AJ Bell Youinvest.

Shares is provided for your general information and use and is not a personal recommendation to invest. It is not intended to be relied upon by you in making or not making any investment decisions. The investments referred to in these articles will not be suitable for all investors. If in doubt please seek appropriate independent financial advice.

Investors acting on the information in these articles do so at their own risk and AJ Bell Media and its staff do not accept liability for losses suffered by investors as a result of their investment decisions.

The Shares team
Disclaimer

Advertising feature

The value of your investments can go down as well as up and you may get back less than you originally invested. We don't offer advice, so it's important you understand the risks, if you're unsure please consult a suitably qualified financial adviser. Tax treatment depends on your individual circumstances and rules may change. Past performance is not a guide to future performance and some investments need to be held for the long term.