Court of Protection
Practice Note - Solicitors' and other professionals' fixed costs
The fixed costs allowable from 1 January 2007 are as follows:
Category I
Work up to and including the date upon which the First General Order or Short Order is entered.
Note: The commencement fee, appointment fee, and fees for medical evidence and evidence of notification of the patient may be added. Please produce receipts for fees paid.
A sum not exceeding £715 (plus VAT)
Category II
(a) Preparation and lodgment of a receivership account
A sum not exceeding £205 (plus VAT)
(b) Preparation and lodgment of a receivership account which has been certified by a solicitor under the provisions of the Practice Notes reported at [1984] 3 All ER 320 and [1985] 1 All ER 884.
A sum not exceeding £220 (plus VAT)
Category III
General management costs in the first year:
(a) Where there are lay receivers and the Court has authorised the receiver to employ a solicitor or other professional person to carry out work not usually requiring professional assistance under rule 87 of the Court of Protection Rules 2001.
A sum not exceeding £630 (plus VAT)
(b) Where there are professional receivers.
A sum not exceeding £1,325 (plus VAT)
General management work in the second and subsequent years:
(c) Where there are lay receivers and the Court has authorised the receiver to employ a solicitor or other professional person to carry out work not usually requiring professional assistance under rule 87 of the Court of Protection Rules 2001
A sum not exceeding £560 (plus VAT)
(d) Where there are professional receivers.
A sum not exceeding £1,055 (plus VAT)
(e) Where a professional is dealing with the affairs of an individual under an order of the court, and the assets of that individual are less than £16,000, then the professional may take a general management fee not exceeding 4% of the patient's assets on the anniversary of the date of the order appointing the professional to act (plus VAT).
Note 1: Categories II and III may be claimed together.
Note 2: Where the period for which general management costs are claimed is less than one year, the professional must take the proportion of the applicable fee as the period bears to one year.
Category IV
Applications under sections 36 (9) or 54 of the Trustee Act 1925 or section 20 of the Trusts of Land and Appointment of Trustees Act 1996 for the appointment of a new trustee in the place of the patient and applications under section 96(1)k of the Mental Health Act 1983 for authority to exercise any power vested in the patient, whether beneficially, or as guardian or trustee, or otherwise.
A sum not exceeding £340 (plus VAT)
Category V
In respect of conveyancing two elements will be allowable as follows:
(a) a sum of £140 in every case to cover correspondence with the Public Guardianship Office, the preparation of the certificate or affidavit of value and all other work solely attributable to the Court of Protection or the Public Guardianship Office, together with
(b) a value element of ¼% of the consideration with a minimum sum for this element of £385 and a maximum sum of £1,500. As well as a fee for both the above elements, VAT and disbursements will be allowed.
Category VI
Work up to and including the date upon which an order appointing a replacement receiver is entered.
A sum not exceeding £475 (plus VAT)
Category VII
Preparation of an Inland Revenue income tax return on behalf of a patient.
A sum not exceeding £190 (plus VAT)
New rates of fixed costs will apply as follows:
- in Category I, to all First General Orders and Short Orders made by the court on or after 1 January 2007.
- in Category II, to all receivership accounts lodged on or after 1 January 2007.
- in Category III, to all general management costs in respect of years ended on or after 1 January 2007.
- in Category IV and V, to all orders sent out on or after 1 January 2007.
- in category VI, to all orders appointing a replacement receiver made by the court on or after 1 January 2007.
- in Category VII, to all Inland Revenue income tax returns completed in respect of the tax year ending on 5 April 2007 and thereafter.
In all categories, except for category III (e), professionals will have the option of the Costs Officer carrying out a detailed assessment of the costs rather than accepting fixed costs, if they wish.
However, professionals must take fixed costs where it is appropriate to do so: in other words, where the amount of the bill is within the maximum allowed under the relevant category. The Supreme Court Costs Office may refuse to carry out a detailed assessment if, in its view, it is more appropriate for the professional to receive fixed costs.
If professionals seek an order for detailed assessment of the costs under Category II as well as Category III, the relevant items for both categories should be included in the same bill.
D. A. LUSH
Master
22 December 2006