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Balfour Beatty set for Trump tax reforms boost

Balfour Beatty is the latest UK construction firm to announce that it is expecting a tax boost from president Trump’s tax reforms.

The contractor said the Tax Cuts and Jobs Act would slash £20m from its US tax bill.

The legislation will see US Federal corporate income tax rates go from 35 per cent to 21 per cent, which Balfour said would represent an “effective tax rate” change from around 40 per cent to approximately 26 per cent.

Balfour said it was increasing the valuation of its investments portfolio by £95m as a result of president Trump’s move.

The contractor added that further information would be provided in the group’s 2017 full-year results statement, which is due to be released in March.

The US Congress passed the president’s tax reform bill at the end of last year, with commentators describing it as the biggest overhaul of tax code in three decades.

Measures under the $1.5tn tax bill include permanent tax breaks for corporations, as well as temporary cuts for individuals.

Earlier this month ground engineering firm Keller revealed it was expecting its US operations to benefit from president Trump’s upcoming tax reforms.

The company also revealed that it was in discussions to buy US geotechnical contractor Moretrench. 

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