Further Statement Re US Budget Reconciliation Bill

Burford Capital Limited ("Burford"), the leading global finance and asset management firm focused on law, today issues the following update to its June 17, 2025 statement in connection with proposed tax provisions relating to litigation finance included within the US Senate's draft of the budget reconciliation bill.

In revisions to the bill over the weekend, the proposed tax rate has been reduced to 31.8% (instead of 40.8%) and the withholding tax rate has been reduced to 15.9% of gains (instead of 50% of the tax rate applied to gross proceeds).

In response to those changes, the nonpartisan Joint Committee on Taxation reduced its estimates of the expected tax revenue the provisions could generate over the next decade to $1.4 billion; prior estimates were as high as $3.5 billion.

The Senate continues to debate the legislation, and there remain a number of uncertain procedural and political steps both for the litigation finance provisions and the bill itself before enactment could occur. The outcome of those steps, including the failure to enact the provisions at all, remains unpredictable. Moreover, as discussed in the prior statement, Burford is not yet able to assess the impact of those provisions, if enacted in their current form, on its future tax position.