Neil Dennis(Press Association) Holiday Inn owner InterContinental Hotels Group has said that Donald Trump’s tax reforms will give the firm a significant boost next year.
The FTSE 100 firm, which is also behind the Crowne Plaza brand, said the president’s recently passed bill will reduce its effective tax rate “by mid to high single digit percentage points” from January.
Tax credit
It is also expected that the measures will result in a “significant, exceptional tax credit” in the financial year the bill is signed into law.
This, IHG added, would be realised in cash terms over a long period from 2018.
Mr Trump’s controversial tax change came after Republicans in Congress voted in favour of the reforms for a second time.
The House passed the massive $1.5tn (£1.2tn) package that affects everyone’s taxes but is dominated by breaks for business and higher earners.
Critics say 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.
President Trump hailed the outcome, tweeting: “Our team will go onto many more VICTORIES!”
Market reaction
Shares in InterContinental Hotels rose 1.13% to £46.58 in mid-morning trade on the London Stock Exchange.