BAT sees 6% boost to 2018 earnings from US tax cut

Cigarette maker British American Tobacco said 2018 earnings would get a 6% boost from the recent US tax cuts “supporting our commitment to high single digit earnings growth and increased investment in the roll out of next generation products”.

BAT said the announced changes will have no impact on the group's underlying effective tax rate for full year 2017 which it expected to be around 30%.

"However, we anticipate that the changes will result in a non-cash exceptional tax credit as a result of the revaluation of deferred tax balances arising from the acquisition of Reynolds American Inc. ," BAT said in a statement.

"For the year to 31 December 2018 we currently anticipate that the changes will reduce the Group's effective tax rate percentage to the high-twenties."