Jurisdiction(s):
United Kingdom

Related legal acts

Key definition

Discount rate definition

What does Discount rate mean? The discount rate is the interest rate used to convert future cash flows or losses into their present value, so that damages, settlements and valuations reflect the time value of money and investment risk. In commercial and finance matters (for example DCF/NPV valuations, lost profits claims, insolvency, pensions and tax), it is a descriptive term rather than a fixed legal definition. The chosen rate is typically risk‑adjusted (for example, based on a risk‑free rate plus premia or a WACC) and can be a key point of expert evidence. In personal injury and clinical negligence, a statutory personal injury discount rate applies...

Serious Brain Injury Claims in England and Wales: Causes, Expert Evidence, Interim Payments, Settlement (PPOs/Provisional Damages), Capacity and Court Approval

Published by a LexisNexis PI & Clinical Negligence expert

Practice notes

NOTE

On 2 December 2024, the Lord Chancellor confirmed a shift in the Discount rate to +0.5%, coming into force on 11 January 2025. Under Schedule A1 to the Damages Act 1996, further reviews must occur within five years of the last review’s end, so the next review must begin on or before 2 December 2029.

For further guidance on serious brain injuries, see the following Practice Notes:

Valuing serious brain injury claims
Rehabilitation in serious brain injury claims

Causes of a serious brain injury

Serious brain injuries may arise from numerous causes, including trauma, deprivation of oxygen, infection, hydrocephalus, encephalitis, brain tumours, stroke, toxicity, degenerative disorders, metabolic and endocrine dysfunction, and nutritional deficiencies. The first seven are set out in greater detail below, as they may found a clinical Negligence or Personal injury compensation claim.

Traumatic brain injury (TBI)

Traumatic brain injury (TBI) occurs when a physical force impacts the brain, which may or may not breach the dura mater (the brain’s covering). The principal causes of TBI are road traffic accidents (involving drivers and passengers)...

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Caroline Klage

Bolt Burdon Kemp

Caroline developed and heads up the eight-strong child brain injury team at Bolt Burdon Kemp, where she has been a partner since 2006. Caroline specialises in cases involving child brain injury and has achieved strong results in a number of high value and complex matters. She feels privileged to act exclusively for children who have sustained brain injury due to substandard medical treatment or as a result of a traumatic accident including road traffic accidents. Caroline champions a pro-active, practical and holistic approach. Her priority is to ensure her clients receive rehabilitation at the earliest possible opportunity to maximise their chances of achieving the optimum outcome whilst providing essential and effective support to her clients' families. She works closely with her clients' families, schools and healthcare professionals to ensure their complex needs are well met so that they can flourish...

Web page updated on 21/05/2026

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