#United States #New York #Litigation Finance #Burford Capital #tax provisions

Burford Capital's Latest Statement on U.S. Budget Reconciliation Bill

On June 30, 2025, Burford Capital Limited, a prominent global finance and asset management firm dedicated to law, provided a significant update regarding its earlier statement from June 17, 2025, about the proposed tax provisions related to litigation finance within the U.S. Senate's draft budget reconciliation bill.

Recent developments revealed that the suggested tax rate has been amended downwards—from an initial forecast of 40.8% to a more moderate 31.8%. Additionally, the withholding tax on gains has been lowered significantly from 50% of gross proceeds to a revised rate of 15.9%. These changes signal a substantial shift in the legislative landscape that impacts litigation finance, a core area of focus for Burford.

Furthermore, in light of these recent adjustments, the nonpartisan Joint Committee on Taxation has also modified its revenue projections. The committee's revised estimates indicate that the new tax provisions might generate approximately $1.4 billion over the next decade, a notable decrease from previous forecasts that anticipated revenues could reach as high as $3.5 billion.

As discussions surrounding the legislation continue, the Senate faces complex procedural dynamics and political maneuvers, which leave the future of both the litigation finance stipulations and the overall budget reconciliation bill uncertain. There is a distinct possibility that the proposed provisions might not be enacted at all, emphasizing the unpredictable nature of legislative outcomes.

In Burford's earlier statements, the company noted its inability to fully assess how these changes might impact its future tax position, should these provisions become law in their current format. The firm's cautious approach underscores an understanding of the complexity and volatility that often accompanies legislative changes, particularly those that involve tax and financial regulations.

About Burford Capital

Founded to provide innovative financial solutions within the legal sector, Burford Capital has established itself as a leader in litigation finance and risk management. Its comprehensive suite of services includes asset recovery and various legal finance and advisory activities.

Trading publicly on both the New York Stock Exchange (NYSE BUR) and the London Stock Exchange (LSE BUR), Burford Capital collaborates with corporations and legal firms around the world through it extensive network of global offices, solidifying its presence in the financial and legal landscapes.

For further insights into Burford Capital's offerings and updates, individuals can visit www.burfordcapital.com.

This press release serves purely informational purposes and should not be construed as an invitation to buy or sell any of Burford's shares or securities. The document discusses forward-looking statements and emphasizes the inherent risks and uncertainties associated with such claims. Readers are encouraged to consider these factors carefully, given the unpredictability of future developments in both the financial and legal arenas.