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BAT Says New US Tax Legislation Will Reduce FY18 Effective Tax Rate Percentage

British American Tobacco plc (BATS.L,BTI) said that it currently anticipate that new US tax legislation will reduce the Group's effective tax rate percentage to the high-twenties for the year to 31 December 2018. All other things being equal, this would result in a benefit of 6% to full year 2018 earnings per share, supporting commitment to high single digit earnings growth and increased investment in the roll out of Next Generation Products.

For the year to 31 December 2017 the announced changes will have no impact on the Group's underlying effective tax rate, which we have previously said we expect to be around 30%. However, it 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.

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