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VAT payable on top of costs budget fee caps (Marbrow v Sharpes)

VAT payable on top of costs budget fee caps (Marbrow v Sharpes)
Published on: 14 July 2020
Published by: LexisPSL
  • VAT payable on top of costs budget fee caps (Marbrow v Sharpes)
  • What are the practical implications of this case?
  • What was the background?
  • What did the court decide?
  • Is VAT included in the CPR PD 3E, para 7.2 percentages?
  • Is pre-judgment interest recoverable on a disbursement funding loan?
  • Should interest on costs run from three months after the order for costs?
  • Case details

Article summary

Dispute Resolution analysis: When assessing the costs of a straightforward personal injury claim, the Senior Courts Costs Office has concluded that there were three issues of interest. First, the figures prescribed by CPR PD 3E, para 7.2 for preparing the initial costs budget and all other costs management work are exclusive of value added tax (VAT). Second, interest on disbursement funding loans is unlikely to be recoverable in straightforward litigation, and finally interest on costs will run from the date of the order which provides an entitlement to costs unless the interests of justice demand some other order is made. Written by Alex Bagnall, technical manager at Total Legal Solutions. or take a trial to read the full analysis.

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