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...

CPR 3.15A costs budget variations: significant developments, promptness, Precedent T, court approach, timing, sanctions and discontinuance (England and Wales)

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Practice notes

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This Practice Note examines the review and revision/variation of a costs budget. It outlines the applicable rules, the criteria governing revisions, the expectation that parties attempt to agree any amendments before seeking the court’s approval, and the necessity for prompt action in both respects. It further considers how the court approaches changes to costs budgets that have been agreed or approved, the consequences where agreement/approval is not obtained, and the effect of sanctions under CPR 3.14 as well as the impact of discontinuance when pursuing a variation. This Practice Note addresses reviewing and revision/variation under the regime in force from 1 October 2020, with references to the former Practice Direction 3E that applied prior to that date. It should also be noted that, from 1 December 2022, CPR PD 3E was renumbered as CPR PD 3D.

When must a party revise their costs budget?

Every party to the proceedings that has a costs budget must revise it where CPR 3.15A(1) is engaged. Under this rule, a party must adjust its budgeted costs—either upwards or downwards—if significant developments in the litigation justify a revision...

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Web page updated on 21/05/2026

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