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The recently passed Tax Cuts and Jobs Act, which contains significant tax reform measures, is estimated to net the UK-based contractor around £20 million, according to the Group's analysis of the changes.
In a statement, Balfour Beatty said: "The reduction in US Federal corporate income tax rates from 35% to 21% will lead to a reduction in the effective tax rate on US earnings from c.40% to c.26% in 2018 and beyond.
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"Furthermore, as a result of this reduced tax rate on US assets the Directors' valuation of the Investments portfolio will increase by approximately £95 million.
"In addition to the above, the Group expects 2017 earnings will benefit from a non-underlying one-off non-cash credit from the revaluation of US deferred tax liabilities. Based on the net deferred tax liabilities at the end of 2016 this credit is expected to be approximately £20 million."
(LM)
