Interim payments on account of costs: applications, quantum and case law under the Civil Procedure Rules (CPR 44.2(8)), including budgeting, CFAs, Part 36 and stays (England and Wales)
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This Practice Note examines what an interim payment on account of costs is, when the court may make such an order, and the presumption that an order will follow where a detailed assessment is anticipated. It also identifies what might constitute a good reason to displace that presumption when costs are to be assessed in detail. In addition, it reviews the relevant case law and considers the position both where costs budgeting has taken place and where it has not.
What is an interim payment on account of costs?
When the court orders the losing party to pay costs, the receiving party will not obtain payment until costs are agreed or a detailed assessment has concluded, a process that can take a considerable period. The general principle, stated in Mars UK Ltd v Teknowledge (1999), is that a successful party is entitled to their costs and should not be kept waiting for payment. In Grupo Hotelero Urvasco (2013), applying the underlying Mars principle, the judge confirmed that a claimant is entitled to a sum by way of costs and ought to be paid without delay...
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Web page updated on 21/05/2026
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