These Rules amend the Court Funds Rules 2011 to provide enhanced detail on how the Accountant General manages and invests sterling deposits separately from foreign currency deposits held in court.
Key changes involve specifying when interest accrues daily (for sterling) versus under foreign account terms, outlining investment procedures for foreign currency based on court schedules or directions, and simplifying payment-out procedures under the Civil Procedure Rules.
Arguments For
Provides clearer delineation of rules applicable to sterling versus foreign currency deposits, improving operational clarity for the Accountant General.
Ensures foreign currency funds are held in accessible interest-bearing accounts unless specific court direction requires otherwise, potentially optimizing asset management.
Simplifies procedures for payment out of funds under CPR rule 37.3 by removing the requirement for a written request from an executor in certain circumstances, streamlining administrative processes.
Retains and reorganizes existing provisions for handling foreign currency investment schedules (previously in Rule 16) within the updated structure, maintaining essential functionality.
Arguments Against
Although no significant impact is foreseen, changes to established rules governing the accrual and crediting of interest for foreign currency deposits could introduce unforeseen complexities in financial reconciliation.
The omission of the entire Rule 16, even with reinsertion of content elsewhere, requires careful tracking by users familiar with the previous structure of the 2011 Rules.
Removing the requirement for written confirmation from an executor for certain payments out (Rule 27 amendment) could potentially introduce risks if adequate electronic safeguards or clear authorization pathways are not in place across all necessary court systems.
The Lord Chancellor, in exercise of the powers conferred by section 38(7) to (9) of the Administration of Justice Act 1982, and with the concurrence of the Treasury, makes the following Rules.
The Lord Chancellor formally enacts these Rules using powers granted by sections 38(7) to (9) of the Administration of Justice Act 1982, with the agreement of the Treasury.
Citation, commencement, interpretation and extent
- (1) These Rules may be cited as the Court Funds (Amendment) Rules 2025 and come into force on 19th January 2026.
(2) In these Rules, a reference to a rule by number alone means the rule so numbered in the Court Funds Rules 2011.
(3) These Rules extend to England and Wales.
Rule 1 establishes that the official title is the Court Funds (Amendment) Rules 2025 and they take legal effect on January 19, 2026.
Unless context dictates otherwise, references to rule numbers refer to the existing Court Funds Rules 2011.
The jurisdiction of these Rules covers England and Wales only.
Amendment of the Court Funds Rules 2011 2. The Court Funds Rules 2011 are amended in accordance with rules 3 to 7 of these Rules.
Rule 2 states that the subsequent provisions, Rules 3 through 7, constitute the amendments being made to the Court Funds Rules 2011.
Amendment to rule 11 (interest bearing accounts) 3. In rule 11— (a) at the beginning insert— “A1 Paragraphs (1) to (3) apply to funds deposited in sterling.”;
(b) after paragraph (3) insert— “(5) Paragraphs (6) to (8) apply to funds deposited in foreign currency.
(6) The Accountant General shall invest money in accordance with any: (a) payment schedule signed and authenticated by a court, or if the case is one where the Accountant General has directed that electronic means may be used, an electronic authenticated copy of such schedule from the court, directing the investment or reinvestment of the foreign currency; or (b) directions in accordance with rule 17(2) directing the investment or reinvestment of the foreign currency.
(7) Where paragraph (6) does not apply, the Accountant General shall invest money in an interest bearing account of that currency that allows for withdrawals of money at any time without penalty.
(8) Where it is not possible to invest money in any currency in which the fund is required to be invested by virtue of paragraph (6) or (7), the Accountant General shall apply to the appropriate court for directions.”.
Rule 3 amends Rule 11 concerning interest-bearing accounts by inserting a provision (A1) specifying that the existing paragraphs (1) to (3) relate specifically to sterling deposits.
New paragraphs (5) through (8) are inserted to govern foreign currency deposits.
For foreign currency, the Accountant General invests according to valid court schedules or directions (6), or places the money in an easily accessible interest-bearing account of that currency (7).
If investment according to (6) or (7) is impossible, the Accountant General must seek directions from the appropriate court (8).
Amendment to rule 13 (accrual of interest) 4. In rule 13— (a) in paragraph (2)— (i) omit “and rule 16(2)”; (ii) omit “on a daily basis”;
(b) after paragraph (3) insert— “(3A) The Accountant General shall credit accrued interest without deducting income tax.
(3B) Paragraphs (3C) and (4) apply to funds deposited in sterling.
(3C) Interest shall accrue on a daily basis.”;
(c) omit paragraph (5);
(d) at the end insert— “(6) Paragraphs (7) to (10) apply to funds deposited in foreign currency.
(7) Interest shall accrue under the terms of the foreign currency account.
(8) Unless the Accountant General directs otherwise, accrued interest shall be credited: (a) when credited under the terms of the foreign currency account; (b) when money is reinvested; and (c) when an account is closed.
(9) The Accountant General shall pay any charge incurred in placing foreign currency into a foreign currency account from the account in which the foreign currency is held.
(10) Unless a court, deputy or investment manager directs otherwise, the Accountant General shall convert dividend payments received in a foreign currency into sterling and invest the proceeds in accordance with this Part.”.
Rule 4 amends Rule 13 regarding interest accrual by removing references to the now-omitted Rule 16(2) and the phrase 'on a daily basis' from the general provisions in paragraph (2).
New provisions clarify that interest is credited without deducting income tax (3A).
Specific rules (3C) are inserted to confirm interest accrues daily only for sterling deposits.
For foreign currency deposits (6), interest accrues according to the account terms (7), and crediting occurs when the account specifies, upon reinvestment, or upon closure (8).
The Accountant General pays any charges for establishing the foreign currency account from that account (9), and handles foreign currency dividend payments by converting them to sterling for reinvestment unless otherwise directed (10).
Amendment to rule 14 (investment) 5. In rule 14(1), after “court” insert “in sterling”.
Rule 5 amends Rule 14(1) to explicitly state that the investment provisions described there apply only to funds invested 'in sterling'.
Omission of rule 16 (foreign currency) 6. Omit rule 16.
Rule 6 completely removes Rule 16 from the Court Funds Rules 2011, as its necessary provisions concerning foreign currency have been relocated and amended in Rules 3 and 4.
Amendment to rule 27 (payment under CPR rule 37.3 (payment out of money paid into court)) 7. In rule 27, for the words from “either” to the end substitute— “( a) either— (i) a written request from the claimant; or (ii) written confirmation from the defendant that all or part of the fund in court may be used to satisfy the offer in whole or in part; or (b) where rule 22A1 applies, either— (i) an electronic request from the claimant; or (ii) an electronic copy of the confirmation from the defendant that all or part of the fund in court may be used to satisfy the offer in whole or in part.”.
Rule 7 amends Rule 27, which governs payments out of money paid into court under CPR rule 37.3.
The previous wording is substituted to clearly outline two potential authorization pathways: either standard written requests/confirmations (a) or equivalent electronic versions (b) if Rule 22A1 applies.
This replaces the requirement previously involving an executor's written request for certain payments.
Explanatory Note (This note is not part of the Rules) These Rules amend the Court Funds Rules 2011 (“the 2011 Rules”). The 2011 Rules govern the administration and management of funds in court by the Accountant General. The primary purpose of these Rules is to provide more detail on differences in treatment between the accounts and investments of sterling deposits and foreign currency deposits.
Rule 3 amends rule 11 of the 2011 Rules to insert new rules 11(A1) and 11(5), to make clear which rules apply to sterling and which to foreign currency. It inserts rules 11(6) and 11(7) to make clear that foreign currency will be held in an easily accessible account of that currency unless and until a payment schedule or directions are received to the contrary. Rules 11(6)(a) and (b) are not new and have moved from previous rule 16(1)(a) and (b), with some minor language changes for readability.
Rule 4 amends rule 13 of the 2011 Rules to insert new rules 13(3B) and 13(6) to make clear which rules apply to sterling and which to foreign currency. Previous rule 13(5) is omitted and inserted as rule 13(3A) to make clear it applies to both sterling and foreign currency. Rule 13(3C) is inserted to make clear that interest only automatically accrues on a daily basis for deposits in sterling. Rule 13(7) and (8) are inserted to explain how interest is accrued and credited for foreign currency deposits. Rules 13(9) and (10) are inserted to provide detail on the payment of charges and dividends for foreign currency. These are not new rules and were previously rules 16(3) and (4).
Rules 5 amends rule 14 of the 2011 Rules to make clear that it only applies to sterling deposits.
Rule 6 omits the entirety of rule 16 of the 2011 Rules, although as set out above, some of the rules have been retained and inserted elsewhere.
Rule 7 amends rule 27 of the 2011 Rules to remove the rule that requires the provision of a written request from an executor of the deceased’s estate when the Accountant General is making certain payments out under Part 37.3 of the Civil Procedure Rules.
A full impact assessment has not been produced for this instrument as no, or no significant, impact on the private, voluntary or public sectors is foreseen.
The Explanatory Note confirms that the overall aim is to better distinguish between rules for sterling and foreign currency funds managed by the Accountant General.
Rule 3 clarifies rule applicability by currency and details foreign currency holding instructions, moving content from the old Rule 16.
Rule 4 similarly separates sterling and foreign currency rules for interest accrual, confirms daily accrual for sterling, and outlines foreign currency interest handling, incorporating old Rule 16 provisions elsewhere.
Rule 5 limits Rule 14 to sterling deposits.
Rule 6 effects the removal of Rule 16.
Rule 7 updates Rule 27 to remove an executor's written request requirement for specific payments out under Civil Procedure Rules.
No significant impact assessment was required.