CPR 47.15 Provisional Assessment: The £75,000 Costs Limit

Provisional assessment under CPR 47.15 was introduced to deal with lower value detailed assessments on the papers rather than through a full oral hearing. The procedure currently applies where the bill of costs does not exceed £75,000.

The Association of Costs Lawyers (ACL) is currently undertaking a survey of its members to assess how effective the provisional assessment process has been in practice. The survey also asks whether the £75,000 limit remains appropriate.

When the scheme was originally piloted, it applied only to bills of up to £25,000, and the process appeared to work reasonably well. The increase to £75,000 has prompted ongoing debate, particularly regarding how the limit should be interpreted.

Some judges have taken the view that the £75,000 threshold is exclusive of VAT, based on the interpretation that the definition of “costs” in the Civil Procedure Rules does not expressly include VAT, which is defined separately elsewhere in the rules. If such a strict interpretation were applied more widely, it raises interesting questions—for example whether an order for costs would need to expressly refer to both costs and VAT.

Another issue often raised is whether the £1,500 plus VAT and court fee cap on the costs of provisional assessment is reasonable when dealing with bills approaching the £75,000 limit.

In practice, it may be more realistic to assume that cases at the upper end of the provisional assessment threshold are more likely to proceed to an oral hearing. In that sense, provisional assessment can be viewed as a mechanism for narrowing the issues between the parties, rather than as the final determination of the dispute.

This approach may carry some risk, particularly where significant costs are incurred that may not ultimately be recoverable if the matter concludes at the provisional stage. However, the process may still prove worthwhile if it helps focus the issues and ultimately leads to a better outcome at detailed assessment.

For assistance with costs disputes and detailed assessment, see our guidance on paying party costs.