Practice Direction 19B (Fixed Costs in the Court of Protection) supplementing Part 19 of the COP Rules 2017 sets out fixed costs that may be claimed by solicitors and office holders in public authorities appointed to act as deputy for P. However, the court may direct that its provisions shall also apply to other professionals acting as deputy including accountants, case managers and not-for-profit organisations.

Where the proceedings concern P’s property and affairs, the general rule is that the costs of the proceedings should be paid by P or charged to his estate. The provisions of Practice Direction 19B apply where the professional deputy is entitled to be paid out of P’s estate. They do not apply where the Court Order provides for one party to receive costs from another.

Usually the Court Order or Direction will state whether fixed costs or remuneration applies, or whether there is to be a detailed assessment by a Costs Officer. Where a Court Order or Direction provides for a detailed assessment of costs, professional Deputies may elect to take fixed costs or remuneration in lieu of detailed assessment.

The categories of fixed costs are as follows:

Solicitors’ costs in court proceedings

Category I: Work up to and including the date upon which the court makes an order appointing a deputy for property and affairs – an amount not exceeding £950 (plus VAT).

Category II: Applications under s36(9) or s54 of the Trustee Act 1925 or s20 of the Trusts of Land and Appointment of Trustees Act 1996 for the appointment of a new trustee in the place of “P” and applications under s18(1)(j) of the Act for authority to exercise any power vested in P, whether beneficially, or as a trustee, or otherwise – an amount not exceeding £500 (plus VAT).

Category I and II apply to all orders appointing a deputy for property and affairs or to all applications for appointment of a new trustee made on or after 1 April 2017.

Remuneration of solicitors appointed as deputy for P

The following fixed rates of remuneration will apply where the court appoints a solicitor to act as deputy (but not where an office holder of a public authority is appointed and employs a solicitor, or a solicitor employed by a public authority is appointed as an office holder of a public authority):
Category III: Annual management fee where the court appoints a professional deputy for property and affairs, payable on the anniversary of the court order.

(a) for the first year – an amount not exceeding £1670 (plus VAT).

(b) for the second and subsequent years – an amount not exceeding £1320 (plus VAT).

(c) Where the net assets of P are below £16000.00, the professional deputy for property and affairs may take an annual management fee not exceeding 4.5% of P’s net assets on the anniversary of the court order appointing the professional as a deputy.

Category IV: Where the court appoints a professional deputy for health and welfare, the deputy may take an annual management fee not exceeding 2.5% of P’s net assets on the anniversary of the court order appointing the professional as deputy for personal welfare up to a maximum of £555.

Category V: Preparation and lodgement of the annual report or annual account to the Public Guardian – an amount not exceeding £265 (plus VAT).

Category VI:

(a) Preparation of a Basic HMRC income tax return on behalf of P – an amount not exceeding £250 (plus VAT).

(b) Preparation of a Complex HMRC income tax return on behalf of P – an amount not exceeding £600 (plus VAT).

In cases where fixed costs are not appropriate, professional deputies may, if preferred, apply to the SCCO for a detailed assessment of costs. However, this does not apply if P’s net assets are below £16,000 where the option for detailed assessment will only arise if the court makes a specific order.

Remuneration of public authority deputies

Separate categories of fixed rates of remuneration apply where the Court appoints a holder of an office of a public authority to act as deputy. Those categories are as follows:

Category I: Work up to and including the date upon which the court makes an order appointing a deputy for property and affairs – an amount not exceeding £745.

Category II: Annual management fee where the court appoints a local authority deputy for property and affairs, payable on the anniversary of the court order.

(a) for the first year; an amount not exceeding £775.

(b) for the second year and subsequent years – an amount not exceeding £650.

(c) Where the net assets of P are below £16,000, the local authority deputy for property and affairs may take an annual management fee not exceeding 3.5% of P’s net assets on the anniversary of the court order appointing the local authority as deputy.

(d) Where the court appoints a local authority for personal welfare, the local authority may take an annual management fee not exceeding 2.5% of P’s net assets on the anniversary of the court order appointing the local authority as deputy for personal welfare up to a maximum of £555.

Category III: Annual property management fee to include work involved in preparing property for sale, instructing agents, conveyancers, etc, or the ongoing maintenance of property including management and letting of a rental property – an amount not exceeding £300.

Category IV: Preparation and lodgement of an annual report or account to the Public Guardian – an amount not exceeding £216.

Category V: Preparation of a Basic HMRC income tax return on behalf of P – an amount not exceeding £70. Preparation of a Complex HMRC income tax return on behalf of P – an amount not exceeding £140.

In most straight forward or routine cases, solicitor deputies will usually opt to take fixed costs because they can be paid quickly and easily. However, the Court recognises that in some cases this will not be appropriate, therefore in all categories of work solicitor deputies may, if they prefer, apply for an assessment of their costs.

Excerpt from the Senior Courts Costs Office Guide 2021