Astra settles over £1.1bn US tax bill

Drugs giant AstraZeneca yesterday said profits would be boosted this year after reaching a deal to settle an ongoing dispute over its US tax bill.

The pharmaceutical firm said it would pay $1.1 billion (689 million) as a result of an agreement between UK and US tax authorities - less than it had set aside to cover the matter.

Astra said its tax rate for 2011 was now expected to be around 21 per cent against the 27 per cent previously expected - allowing it to increase one of its core earnings targets for the year. The firm recently posted a 2 per cent rise in annual profits to $11bn.