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IHG expects boost from Trump tax cuts

US president Donald Trump’s wide-ranging tax reforms will result in a financial boost to InterContinental Hotels Group.

The Holiday Inn parent today estimated its US tax rate will be cut by “mid to high” single digit percentage points from January 1.

IHG’s group effective tax rate is still expected to be in the low 30s in 2017.

The company also expects a “significant, exceptional” tax credit in the financial year the bill is signed into law, which would be realised in cash terms over a long period from 2018.

Any updates will be provided at IHG’s 2017 preliminary results due to be issued on February 20, the company said in an announcement to the London Stock Exchange this morning.

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