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...

Pre- and post-liability rehabilitation in serious brain injury claims: funding routes, case management, and accommodation (Swift v Carpenter) amid the 0.5% discount rate (England and Wales)

Published by a LexisNexis PI & Clinical Negligence expert

Practice notes

On 2 December 2024, the Lord Chancellor confirmed a change to a positive 0.5% Discount rate, effective from 11 January 2025. Under Schedule A1 to the Damages Act 1996, as added by Part 2, section 10 of the Civil Liability Act 2018, further reviews must occur within five years of the previous review’s conclusion; therefore, the next review must start on or before 2 December 2029. For detailed guidance on serious brain injury claims, see Practice Notes: Claims involving serious brain injuries, Valuing serious brain injury claims and Rehabilitation Code 2015.

Rehabilitation before liability is resolved

For many brain-injured claimants—adults and children alike—the primary objective is to progress from hospital or a residential rehabilitation setting to life within the community. This is linked to a better quality of life:

with appropriate support, brain-injured claimants should be enabled to complete as many activities of daily living as independently as possible
greater independence and self-reliance are closely associated with self-esteem and overall quality of life
community living should encourage stronger social integration, with easier access to family and friends—and...

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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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