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How the Court Funds Office works

The Court Funds Office provides a banking administration service for the civil courts in England and Wales, including the High Court.

Cases where money can be held by the Court Funds Office include:

• when a child is awarded damages as a result of civil legal action in a county court or High Court
• when the Court of Protection decides someone is unable to make decisions for themselves
• when money is held in court waiting for a court case to be settled

The Court of Protection will usually appoint a deputy if someone is unable to make their own decisions. This deputy will have certain responsibilities and powers that the court will make clear to them.

Money held for a child or someone who is unable to make their own decisions is held in a ‘special account’. If the money is being held until a civil case is settled, it is put into a ‘basic account’.

Special accounts and basic accounts pay different rates of interest. This will affect the value of the accounts over time. You can find more about the interest rates and how the Court Funds Office invests money using the link below.

• How the Court Funds Office invests money

Children's accounts with the Court Funds Office

Children under 18 years old are sometimes awarded money as part of a court case or hearing. This money can be held for them by the Court Funds Office. You can find out more about children’s accounts using the link below.

• Children's accounts with the Court Funds Office

Money held by the Court Funds Office before a case is settled

Money can be held in a Court Funds Office account before a case is settled. This happens if one side offers an amount of money to settle a case but the other side rejects the offer and continues the legal action. This is called a 'defence of tender'.

The money will be held by the Court Funds Office until the case is settled.

Court Funds Office accounts and tax

Money held in Court Funds Office accounts can earn interest and increase in value because of investments made with the money. Tax will have to be paid if the interest or dividends received are more than the person’s tax allowance. There may also be further tax to be paid on dividends received if the person is a higher-rate tax payer.

The Court Funds Office also issues tax vouchers. These show how much interest has been added to the account for that period or give details of any dividends credited. These may be required when preparing a tax return.

Money in a Court Funds Office account can be used to invest in the stock market. If any investments have been sold for more than their original value, tax may also be payable. This is the case if the difference in value is higher than the person’s Capital Gains Tax allowance.

• Introduction to tax allowances and reliefs

Receiving account statements from the Court Funds Office

The Court Funds Office automatically issues statements in spring (April/May) for all Court of Protection clients and children's cases. A further statement is issued in autumn for all Court of Protection and children's accounts that hold funds of £100,000 or more.

The statement will show how much money is in the account, and any transactions that have taken place on the account.

Statements may be requested in writing at anytime outside of these dates. They do not show the value of any equity investments.

To request a statement you should contact the Court Funds Office by calling their customer service helpline on 0845 223 8500 or by emailing them:

enquiries@cfo.gsi.gov.uk

Statements include the following information about any transactions:

• your case name, case number and Court Funds Office account number
• the date, description and cash value of any transactions in or out of the account
• the balance of the account for which you can’t earn interest, known as the cash balance
• the balance on the account for which you can earn a lower rate of interest, known as the basic account
• the balance on the account for which you can earn a higher rate of interest, known as the special account

Keep your details up to date

If there are any changes in your address or the address of the person you are responsible for, you should tell the Court Funds Office. Incorrect details could mean that payments are delayed or documents get lost.

To update your details, you need to contact the Court Funds Office by writing to the following address:

Court Funds Office
Glasgow
G58 1AB

You will need to tell the Court Funds Office both the old and new address. You will also need to include the Court Funds Office account number or name of the person you are acting on behalf of. You should include any court reference numbers if you know them.