Jurisdiction(s):
United Kingdom

Key definition

Costs definition

What does Costs mean? In litigation, costs are the legal fees, disbursements, court fees and VAT incurred in bringing, defending or appealing a claim, and the sums a court or tribunal may order one party to pay another for those liabilities. The concept is governed by procedural rules and case law rather than a single statutory definition: England and Wales (CPR 44–47), Northern Ireland (RCJ Ord 62), Scotland (where the equivalent term is expenses), and Ireland (Legal Services Regulation Act 2015 and the Legal Costs Adjudicators). The general approach is broadly consistent, subject to local terminology and procedure. Typical features include the discretionary rule...

Client Care Letters and Terms of Business: SRA regulatory requirements, presentation best practice, CCL/TOB allocation, verbal explanations, Lexcel and review (England and Wales)

Published by a LexisNexis Practice Compliance expert

Practice notes

A client care letter (CCL)

A clear, straightforward client care letter that contains the right details can strengthen your business by:

showcasing your values and high standards of service
reducing the likelihood of complaints by setting out what clients can expect, particularly regarding Costs
retaining clients
explaining the regulatory protections your clients benefit from
making clear what you require from the client so you can progress their matter or protect their legal position

There is little that the SRA specifically requires you to provide to clients in writing at the start of their matter, and there is no regulatory obligation to issue either a CCL or a terms of business (TOB). However, the SRA clearly expects firms to use a CCL and has produced guidance, which is reflected in this Practice Note. This Practice Note also reflects the Law Society Practice Note: Client information Requirements. For guidance on the substantive content of your CCL and TOB, see Practice Note: Client care letter and terms of business—information requirements. A CCL is sometimes referred to as a letter of engagement...

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Web page updated on 21/05/2026

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