Melrose Industries Plc (LON:MRO) told investors that it expects the new US tax changes will reduce the group’s effective tax rate to 24%.
It will also significantly reduce the amount of US tax payable on any disposal from within the Nortek group, the company added.
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At the same time, the company said that the full implications of the new tax legislation are still being reviewed, though it anticipates that there will be no effect on the financial year to 31 December 2017 - other than a non-cash, net tax credit due to the revaluation of deferred tax balances, which will be excluded from underlying results.