Senate revises litigation finance tax provisions in budget bill

Published 30/06/2025, 08:04
Senate revises litigation finance tax provisions in budget bill

WASHINGTON - The U.S. Senate has amended proposed tax provisions related to litigation finance in its draft budget reconciliation bill, reducing the initially proposed tax rates, according to a statement from Burford Capital Limited on Monday.

The revised provisions now include a tax rate of 31.8%, down from the originally proposed 40.8%, and a withholding tax rate of 15.9% on gains, rather than the previous 50% rate applied to gross proceeds.

Following these revisions made over the weekend, the nonpartisan Joint Committee on Taxation has lowered its revenue projections for the provisions to $1.4 billion over the next decade, significantly less than earlier estimates of up to $3.5 billion.

The Senate continues to debate the legislation, with Burford noting that "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 company added that the outcome, including the possibility that the provisions might not be enacted at all, "remains unpredictable."

Burford, which describes itself as a global finance and asset management firm focused on law, stated it is not yet able to assess the impact of these provisions on its future tax position if they are enacted in their current form.

This announcement follows Burford’s previous statement on the matter issued on June 17, 2025. The information is based on a company press release statement.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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