The Ministry of Justice has amended the Court Funds Rules 2011 to separate how sterling and foreign‑currency deposits in court are held, invested and credited with interest. The Court Funds (Amendment) Rules 2025 were laid before Parliament on 8 December 2025 and come into force on 19 January 2026. They also update the evidence required for certain payments out under the Civil Procedure Rules.
Investment instructions for foreign‑currency funds are now set out alongside the sterling regime in rule 11. Where a court issues a payment schedule, or directions are given under rule 17(2), the Accountant General must invest or reinvest the specified foreign currency accordingly. If no such direction exists, the default is an interest‑bearing account in that currency which permits withdrawals at any time without penalty. Where investment in the required currency is not possible, the Accountant General must seek directions from the court. This replaces and consolidates provisions that previously sat in rule 16.
Rule 13 is revised to make clear that accrued interest is credited gross, without deduction of income tax, across both sterling and foreign‑currency deposits. For sterling deposits, interest accrues on a daily basis from the relevant effective date until the day before withdrawal; for foreign currency, accrual follows the terms of the underlying account. In both cases, crediting points are specified, including on reinvestment and account closure, subject to any direction by the Accountant General.
Operational costs linked to foreign‑currency holdings are addressed directly. Any charge incurred when placing foreign currency into its account is to be met from that foreign‑currency account. Unless a court, deputy or investment manager directs otherwise, dividend payments received in a foreign currency will be converted into sterling and invested under Part 3 of the Rules. These points were previously contained in rule 16 and are retained in substance.
Rule 14 is amended to specify that it applies only to investment in sterling. In tandem, the instrument omits rule 16 in its entirety and redistributes its foreign‑currency content to rules 11 and 13, providing a single, clearer structure for practitioners handling funds in different currencies.
For payments out, rule 27 is updated in relation to CPR rule 37.3 (payment out of money paid into court). The Accountant General may act on either a written request from the claimant or written confirmation from the defendant that funds in court may be used to satisfy an offer, with electronic equivalents where electronic processes apply. The change removes the previous requirement for a written request from an executor in certain cases.
The Rules are made by the Lord Chancellor with the concurrence of the Treasury under section 38(7) to (9) of the Administration of Justice Act 1982, which provides for rules on the administration, investment and interest on funds in court. The framework also allows the Accountant General to apply to the court for directions where needed.
The instrument is issued free of charge as it corrects defects identified in the 2023 amendment to the Court Funds Rules. The Joint Committee on Statutory Instruments previously reported S.I. 2023/987 for defective drafting, and the 2025 instrument clarifies the interaction between sterling and foreign‑currency provisions and aligns interest and payment‑out processes with the electronic routes introduced in 2023.
For court users, deputies and litigation solicitors, the practical effect is a more explicit split between sterling and foreign‑currency management. Firms holding foreign‑currency awards or settlements should check whether any existing directions need refreshing, confirm the applicable account terms for accrual and crediting, and factor account charges into case planning. For settlement administration, ensure payment‑out requests align with the revised rule 27 documentation options, including electronic submissions where enabled.
For the Court Funds Office and public bodies placing funds in court, the commencement on 19 January 2026 allows a short implementation window to update templates, guidance and case management systems so that interest crediting, currency conversion of dividends and charge allocation operate consistently with the amended rules.