Millennium & Copthorne takes £5m hit after tax rules change

New Zealand

Hotels group Millennium & Copthorne will post a £5m deferred tax expense in its next interims after changes to New Zealand's tax rules.

Changes introduced in New Zealand's May Budget, including a reduction in the corporation tax rate from 30% to 28%, and removing the ability to depreciate buildings for tax purposes, will lead to the expense.

Its New Zealand company will take on an increase of $26m (£16.7m) in its deferred tax liability, pushing the subsidiary into an after-tax loss for the period.

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