Practical Law

Court fee remission process

An application for help with fees, that is to avoid paying a court or tribunal fee altogether, or getting a reduction on the normal fee, is made on Form EX160: Apply for help with fees. The process for applying online is:

• Court users enter their details and check them before submitting the application.
• Court users receive an application reference number that needs to be written on their court/tribunal claim or application form.
• If the application reference number is not written on the court/tribunal claim or application form, staff will not be able to process the application for help with fees.
• The applicant receives a confirmation email from the court/tribunal containing the application reference number.
• The court/tribunal contacts the applicant to let them know whether the application was successful or not, and if not whether any additional information is required.
• There is no need to provide any paper evidence unless the court or tribunal specifically asks for it.

In June 2016, HM Courts and Tribunals Service updated its guide on how to apply for help with fees. That 20 page publication is on Form EX160A.

Eligibility

To be eligible for a fee remission, the court user must pass two tests: the disposable capital test and the gross monthly income test. They must also fill out Form EX160. Only the person who has to pay the court or tribunal fee can make a fee remission application. However, there are two exceptions to this rule:

• Applications to the Court of Protection on behalf of “P” (a “person” who lacks the capacity to make decisions).
• Any person acting for or representing a child involved in legal action.

The guidance says:

“Minors: If you are acting for or representing a child involved in court or tribunal proceedings, in your capacity as a Litigation Friend, parent or guardian, you can apply for a full or part remission using your own details.”

As noted above, the fee remission scheme is based on two tests:

• Disposable capital test.

• Gross monthly income test.

The court user will have to pass both tests in order to be eligible for a fee remission.

Disposable capital test

In order to pass the disposable capital test (the first test that must be passed), you must have a disposable capital of below the following thresholds; if you do, then you will pass the disposable capital test and can continue to the gross monthly income test.

For people 61 years or older, there is a single disposable capital limit of £16,000, regardless of the amount of the court fee.

If you have disposable capital equal to or more than the relevant threshold you will not be eligible for a fee remission and will be required to pay the fee in full. The Ministry of Justice states that disposable capital is:

 “… the value of savings, investments and so on which you and your partner (if you have one) have on the date the application is made. It does not include wages or benefits. However, if you are bringing proceedings with a contrary interest, do not include the value of your partner’s disposable capital, or any capital held jointly by you or your partner (for example, a joint savings account).”

 Examples of disposable capital are as follows:

• Capital held in any type of saving account(s), for example:
  • all ISAs;
  • fixed rate bonds;
  • market linked investment bonds or savings; or
  • any other form of savings account.
• Any type of redundancy capital payment received.
• Stocks or shares.
• Any jointly held capital (where one or more parties have a financial interest in a disposable capital source).
• Second homes.
• Trust funds (where accessible), or any other fund available to you.
• Any type of disposable capital held outside the UK.
• Any type of capital financial product (for example, unit trusts, an open-ended investment company (OEIC), or derivatives.

The following should not be included when calculating disposable capital:

• Bereavement payment.
• Self-employed businesses (the capital value of your or (if you have one) your partner’s business).
• Criminal injuries compensation scheme.
• First homes (the main property where you live).
• Home contents (for example, furniture or clothing).
• Independent living fund.
• Insurance contracts (the cash value of for example, life insurance).
• Jobseeker’s back to work bonus,
• Lump sum payments made on illness, disability or death from insurance or endowment policies (all other insurance or endowment payments are considered).
• Medical negligence or personal injury awards.
• Personal or occupational pension schemes (the cash value of).
• Student loans or student grants.
• Sure Start maternity grants.
• Tools and implements of trade (including vehicles used for business purposes).
• Trust funds, and any other fund available, which you or (if you have one) your partner, cannot access or receive advances from.
• Unfair dismissal awards.
• Vehicles (for example, cars or vans), the sale of which would leave you or your partner without transport.

If you pass the disposable capital test, then you can continue to the gross monthly income test which will also need to be passed in order to be eligible for a full or part remission. However, if you do not pass this test, that is the disposable capital test, then you are not eligible for any fee remission and you do not need to consider the gross monthly capital test.

Gross monthly income test

There are two types of fee remission and you have to pass both tests in order to be eligible for a fee remission:

• Remission 1. You will receive a full remission of a court or tribunal fee if you receive one of the following benefits:
  • income-based Jobseekser’s Allowance;
  • income-related Employment and Support Allowance;
  • income support;
  • universal credit, with gross annual earnings of less than £6,000.00;
  • state pension, guarantee credit;
  • Scottish civil legal aid.

• Remission 2. You will receive a full remission if your gross monthly income is below the following thresholds:

If your gross monthly income exceeds the above figures, you may still receive a partial fee remission. For every £10 of income you have over the threshold set out in the above table, you will be required to pay £5 towards your court or tribunal fee. The court or tribunal will calculate whether you are required to pay a contribution towards the fee, known as a partial remission.

If your gross monthly income is over the below figures, or your expected contribution is higher than the fee required, you will not be eligible for a fee remission:

Refunds

A fee remission can be applied for before the case is issued, or a refund can be applied for following payment of the court fee.

However, the time limit in which a refund of a court fee can be applied for is stated as within six months of paying the fee in Schedule 2 of The Civil Proceedings Fees Order 2008 and within three months of paying the fee on page 19 of the HM Courts & Tribunals Service’s own guidance on EX160.