The Ministry of Justice has made the Court Funds (Amendment) Rules 2025 (S.I. 2025/1275) under section 38(7) to (9) of the Administration of Justice Act 1982, with Treasury concurrence. The instrument was made on 4 December 2025, laid before Parliament on 8 December 2025, and comes into force on 19 January 2026. It applies in England and Wales and is issued free of charge following a defect identified in S.I. 2023/987.
The Court Funds Rules 2011 (S.I. 2011/1734) set the framework for the Accountant General’s administration of money paid into court. The 2025 amendments clarify divergent treatment for sterling and foreign currency deposits, covering investment instructions, how interest is accrued and credited, and who bears operational charges. The aim is to make the currency split explicit in the Rules and remove ambiguity that arose after previous amendments.
Rule 11 now starts by stating that paragraphs (1) to (3) apply to funds deposited in sterling. A new signpost in paragraph (5) confirms that paragraphs (6) to (8) govern foreign currency deposits. This structural change is intended to separate sterling provisions from foreign currency provisions that were previously dispersed and, in part, located in rule 16.
For foreign currency deposits, paragraph 11(6) requires the Accountant General to invest in accordance with a court‑authenticated payment schedule or directions given under rule 17(2). In the absence of such directions, paragraph 11(7) provides that funds must be held in an interest‑bearing account denominated in the relevant currency that permits withdrawal at any time without penalty. Where investment in the specified currency is not possible, paragraph 11(8) obliges the Accountant General to apply to the appropriate court for directions.
Rule 13 is recast to address interest across currencies. New paragraph 13(3A) confirms that the Accountant General will credit accrued interest without deducting income tax, a point that now applies to both sterling and foreign currency. Paragraphs 13(3B) and 13(3C) make clear that the sterling regime continues to accrue interest on a daily basis.
For foreign currency deposits, paragraph 13(6) directs readers to paragraphs (7) to (10). Under paragraph 13(7), interest accrues in line with the terms of the foreign currency account rather than on a daily basis. Unless the Accountant General directs otherwise, paragraph 13(8) provides that interest is credited when the account credits interest, when money is reinvested, and on account closure. Paragraph 13(9) states that any charge incurred in placing foreign currency into a foreign currency account is paid from that account. Paragraph 13(10) provides that dividends received in a foreign currency are converted into sterling and the proceeds invested under the Rules unless a court, deputy or investment manager directs otherwise.
A targeted textual change is made to rule 14(1), inserting the words “in sterling” after “court”. This clarifies that rule 14(1) concerns investment directions given by the court in relation to sterling deposits only, aligning the provision with the new currency split elsewhere in the instrument.
Rule 16 of the 2011 Rules is omitted in its entirety. However, substantive requirements previously found in rule 16 have been retained and relocated-principally into revised rule 11 for investment mechanics and into rule 13 for interest-so that the overall effect is consolidation and clarification rather than policy change.
Rule 27 is amended to streamline how funds in court may be used to satisfy an offer. The Accountant General may proceed on a written request from the claimant or written confirmation from the defendant, with electronic equivalents available where rule 22A1 applies. The amendment removes the earlier requirement for a written request from an executor of a deceased’s estate in certain payments out made under Civil Procedure Rules Part 37.3, simplifying the evidential route for authorising payment.
The instrument is signed by the Lord Chancellor, David Lammy, with concurrence by two of the Lords Commissioners of His Majesty’s Treasury, Gen Kitchen and Taiwo Owatemi. The Explanatory Note records that no full impact assessment has been prepared because no significant impact on the private, voluntary or public sectors is expected. Court users and practitioners should update templates to specify the currency of investment, anticipate gross crediting of interest, and note that daily accrual applies to sterling only from commencement on 19 January 2026.