Q&As

Is the provisional assessment limit of £75,000 under CPR 47.15 inclusive or exclusive of VAT?

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Produced in partnership with James Tunley of Lamb Chambers
Published on LexisPSL on 24/09/2018

The following Dispute Resolution Q&A produced in partnership with James Tunley of Lamb Chambers provides comprehensive and up to date legal information covering:

  • Is the provisional assessment limit of £75,000 under CPR 47.15 inclusive or exclusive of VAT?
  • Provisional assessment
  • The £75,000 limit
  • The inclusion or exclusion of VAT

Is the provisional assessment limit of £75,000 under CPR 47.15 inclusive or exclusive of VAT?

Provisional assessment

In detailed assessment proceedings, where the costs are not more than £75,000, the parties must use the provisional assessment procedure provided for in CPR 47.

The £75,000 limit

The limit is set out in CPR PD 47, para 14.1 — Procedure for Detailed Assessment of Costs and Default Provisions. CPR PD 47, para 14.1 refers to the ‘amount of costs’ being less than or equal to £75,000.

CPR 44.1(1) provides that ‘costs’ includes ‘fees, charges, disbursements, expenses, remuneration, reimbursement allowed to a litigant in person under CPR 46.5 and any fee or reward charged by a lay representative for acting on behalf of a party in proceedings allocated to the small claims track’. However, this does not assist greatly because it is not an exhaustive definition of ‘costs’.

The inclusion or exclusion of VAT

Provisional assessments: Cook on Costs [11.16] states:

‘This procedure applies to those cases where the detailed assessment commenced after 31 March 2013 (in other words where the Notice of Commencement was served after 31 March 2013) and the bill is for £75,000 or less (excluding VAT) are subject to the provisional assessment scheme (CPR 47.15(1)).’

This conclusion may have

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