Burford Capital Limited issued a statement on June 17, 2025, regarding proposed tax provisions related to litigation finance included in the US Senate's draft budget reconciliation bill. The Senate's version of the bill, released recently, includes a provision aimed at increasing the statutory tax rate on litigation finance transactions.
Burford stated that the language of the provision is not sufficiently precise to allow the company to assess its potential impact if enacted in its current form. Further interpretation from the US Internal Revenue Service would be required.
The company highlighted the significant political uncertainty surrounding the bill's passage, noting that the House version of the bill makes no reference to litigation finance. Extensive negotiations between the House and Senate would be necessary to reach a final agreed bill, with no guarantee of enactment.
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