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The tax charge in the first half of 2018 was £16.4m, compared to a charge of £14.6m for the same period of 2017. The effective tax rate was 24.5% (H1 2017: 25.1%), representing an improvement on previous guidance of 26.5% as the Group benefits from the utilisation of some historic losses.

The headline tax rate, being stated after accounting for amortisation of goodwill and acquired intangibles, is 24.5% in the first six months of 2018 (H1 2017: 25.5%).

The final impact of the changes from the passing of the Tax Cuts and Jobs Act in the US in December 2017 are subject to a number of detailed provisions in the legislation and any implementation guidance issued by the Treasury Department and the IRS. The exact workings of these provisions remains unclear. Bodycote will continue to monitor any developments and give due consideration to the impact of any guidance, along with ongoing market interpretation and assessment on the accounting implications of this Act.

Nonetheless, we have revised guidance as we do not anticipate that the Group's headline tax rate for the full year will exceed 24.5%.