On 8 December 2025, the <span class="news-text_italic-underline">Court Funds (Amendment) Rules 2025 (SI 2025/1275)</span> were laid before Parliament of the United Kingdom. The instrument amends the <span class="news-text_italic-underline">Court Funds Rules 2011</span> and will come into force on 19 January 2026.
The amendments are intended to provide greater clarity on the operation of court funds held in foreign currency and, where there are no practical differences, to bring the applicable procedures into closer alignment with those governing sterling. The accompanying explanatory memorandum sets out the policy background and legislative context to the reforms in detail.
Key Amendments
- <span class="news-text_medium">Interest-bearing accounts:</span> Rule 11 has been revised to distinguish expressly between provisions applicable to sterling and those applicable to foreign currency. New rules confirm that foreign currency will be held in accounts permitting withdrawal at any time without penalty, unless a payment schedule applies or directions are given by the court. Provisions previously contained in Rule 16 have also been incorporated into Rule 11.
- <span class="news-text_medium">Accrual of interest:</span> Rule 13 has been amended to clarify that interest on sterling deposits accrues daily, whereas interest on foreign currency deposits accrues in accordance with the terms of the relevant account. Responsibility for managing and crediting interest rests with the Accountant General for both sterling and foreign currency accounts, subject to the updated provisions now set out in Rule 13.
- <span class="news-text_medium">Investment of funds:</span> Rule 14 has been updated to make clear that it applies only to sterling investments.
- <span class="news-text_medium">Foreign currency provisions:</span> Rule 16 has been omitted in its entirety with relevant provisions relocated into other parts of the rules.
- <span class="news-text_medium">Payments out of court funds:</span> Rule 27 has been amended to remove the requirement for a written request from an executor when the Accountant General makes certain payments out of court funds under CPR rule 37.3.
These changes are designed to improve clarity and consistency in the administration of court funds, particularly in relation to foreign currency holdings.
