Success Fee Caps in Scotland: What You Can Be Charged
In a Scottish personal injury claim, a solicitor’s success fee is capped by law. Under the Success Fee Agreements Regulations 2020, the cap is 20% of the first £100,000 of damages, 10% of the amount between £100,000 and £500,000, and 2.5% of anything above £500,000. These limits include VAT. They are ceilings, not standard rates, and a firm can charge less. At Scotland Claims Injury Lawyers, the success fee is 0%.
This guide explains how the caps work, shows the sums on real-sized awards, lists the other costs that can still come out of your damages, and gives you questions to ask before you sign anything.
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- The cap on a success fee in a Scottish personal injury claim is 20% on the first £100,000, 10% on £100,000 to £500,000 and 2.5% above £500,000, VAT included.
- The cap is a maximum. The Law Society of Scotland says firms should not treat it as a default, and you are encouraged to shop around.
- On a £40,000 award, the most a firm can take as a success fee is £8,000. With us, a success fee is £0.
- A “no win no fee” deal can still involve other costs, such as an After the Event (ATE) insurance premium, so ask for every deduction in writing.
- The usual time limit to start a personal injury case is three years, so do not let a fee question delay you.
Table of Contents
What a success fee is in Scotland
Scottish law no longer talks about “no win no fee” in the abstract. Since 2020 these deals are regulated as success fee agreements. They take one of two forms: a speculative fee agreement or a damages-based agreement. If you are receiving civil legal aid, you cannot enter into a speculative success fee agreement.
In plain terms, a success fee is an extra amount your solicitor can charge on top of their normal fees if you win. If you lose, you do not pay your own solicitor’s fees. The success fee is the reward for taking that risk, and the law limits how large it can be.
The power to set the limits comes from section 4 of the Civil Litigation (Expenses and Group Proceedings) (Scotland) Act 2018, which lets Scottish Ministers set the maximum success fee by regulation. The resulting regulations came into force on 27 April 2020, according to the Law Society of Scotland’s guidance. They apply to agreements entered into on or after that date.
The caps for personal injury claims
For personal injury, the figures in Regulation 2 work in bands, a bit like income tax. Each rate applies only to the slice of damages inside its band.
| Slice of your damages |
Maximum success fee |
| First £100,000 |
20% |
| £100,000 to £500,000 |
10% |
| Above £500,000 |
2.5% |
The caps include VAT. A firm cannot quote 20% and then add VAT on top. Other types of case have different caps. The Law Society of Scotland Journal noted when the framework was being developed that employment tribunal claims were expected to be treated differently. This article covers personal injury only.
Worked examples
The bands are easier to grasp with numbers. These are my own calculations from the published caps, showing the most a firm could take as a success fee.
| Award |
Calculation at the cap |
Maximum success fee |
Left after success fee |
| £10,000 |
20% of £10,000 |
£2,000 |
£8,000 |
| £40,000 |
20% of £40,000 |
£8,000 |
£32,000 |
| £100,000 |
20% of £100,000 |
£20,000 |
£80,000 |
| £150,000 |
£20,000 + 10% of £50,000 |
£25,000 |
£125,000 |
| £600,000 |
£20,000 + £40,000 + 2.5% of £100,000 |
£62,500 |
£537,500 |
Most injury claims settle in the lower rows. A whiplash claim, a slip on an icy pavement or a broken wrist at work will typically sit well inside the first £100,000 band. For those claims, the 20% rate is the one that matters, and it is the one that takes the largest bite relative to the award.
The figures above are ceilings. They are not a prediction of what any firm will charge you, and they say nothing about other deductions, covered below.
A cap is a maximum, not a price
The regulations say what a firm must not exceed. They do not say what it should charge. The Law Society of Scotland has been explicit in its journal commentary on the new regime: the caps are meant as maximums, and charging the top figure by default undermines the competitive market they were designed to encourage. The same commentary encourages clients to shop around and discuss the percentage with their solicitor, reflecting the real risk and work involved in their case.
That is practical advice. A straightforward road traffic claim where the other driver has admitted fault carries far less risk than a disputed case with weak evidence. A fee that suits one may not suit the other.
So when a firm tells you the percentage, ask three things:
- Is that the maximum, or the rate you will actually charge me?
- Does it include VAT?
- Is anything else coming out of my damages?
What else can come out of your damages
A low or zero success fee does not automatically mean you keep every pound. Here is what the Law Society of Scotland’s guidance and journal articles say you should be aware of.
ATE insurance. After the Event insurance covers the risk of paying the other side’s costs if your claim fails. The Law Society’s journal explains that ATE premiums are a notable exception to the rule that unrecoverable costs cannot be passed to the client: they can be deducted from your damages.
Unrecoverable outlays. Solicitors cannot charge you for outlays such as expert witness fees or counsel fees that the other side does not end up paying, unless they have obtained the sanction or certification needed. If those costs are not covered, the solicitor bears them, not you.
The other side’s costs. The Law Society’s guidance on the style agreement points out that no win no fee protects you from paying basic legal fees if you lose, but not necessarily from all financial liability. Depending on the case, you may be liable for the other side’s costs unless you are protected by qualified one-way cost shifting (QOCS), and solicitors must explain these risks, including ATE, before you sign.
If you want a fuller walk-through of who pays what, our guide to who pays legal costs after an injury claim covers it, and our piece on personal injury fees in Scotland shows what you pay and keep.
What a valid success fee agreement must contain
A success fee agreement is a formal document, and the rules protect you if a firm gets it wrong.
- It must be probative, meaning self-proving under the Requirements of Writing (Scotland) Act 1995, and set out details of the claim, the expected remedy and a description of the work. This is set out in the government consultation on the regime.
- In personal injury cases, if you end the agreement early, the solicitor’s entitlement to payment for work already done must be spelled out in the agreement itself, or it may not be enforceable.
- Solicitors must issue the agreement together with a cooling off notice, and the Law Society publishes a style success fee agreement with an explanatory note. Using it is encouraged rather than mandatory, but failing to follow the prescribed form and content rules can make an agreement invalid or unenforceable.
In practice: read the agreement, use the cooling off period if you want to think, and do not sign something you cannot explain back to a friend.
Why solicitors can do this and others cannot
Scotland has historically kept a line between solicitors and claims management companies. The Scottish Government’s consultation explains that solicitors are bound by conduct rules requiring fees to relate to work actually done. That is why speculative fee agreements are enforceable for solicitors, whereas contingency fees based purely on a percentage of damages, with no link to the work, have historically been void for them.
For you, the lesson is simple. Check who is actually going to run your claim and that they are a regulated solicitor.
Our perspective
We have a simple view of success fees: if your injury was someone else’s fault, the compensation is meant to make up for what you have lost, not to fund your lawyer.
That is why we charge no success fee. Our fees are recovered from the opposing insurer when a case is won, so the success fee in our agreements is 0% and you keep 100% of your compensation from us. That applies to whiplash, road traffic accidents as a driver or passenger who was not at fault, slips and trips, and accidents at work. The legal cap tells you the most a firm may charge. It does not tell you what you should accept, and 0% sits comfortably below any cap.
We would also say, honestly, that a headline percentage is only part of the picture. Ask any firm, including us, to confirm in writing what, if anything, will be deducted from your damages, including any insurance premium, before you sign. A clear answer is a good sign. A vague one is not.
Our scope is narrow on purpose. We handle personal injury claims in Scotland. We do not handle criminal injuries compensation or medical negligence.
— Roger
How our no win no fee claims work
If you were hurt in an accident that was not your fault, you can start with a free claim assessment. We offer a 24-hour callback or helpline and an online form, and the assessment costs nothing. If your claim is accepted and lost, you pay no fees.
Choose the page that matches your situation:
Not sure where you stand? Our personal injury compensation claim page is the place to start, and the compensation calculator gives a rough idea of value.
Questions to ask before you sign
Whatever firm you choose, take this checklist with you.
- What is the success fee percentage, and is it the maximum or the actual rate? Compare it with the bands above.
- Is VAT included? The legal cap includes it.
- Is there an ATE insurance premium, and who pays it? If it is deducted from damages, ask for the amount.
- What happens if I change my mind? The agreement must set out payment for work done before termination.
- Am I protected by QOCS, or could I owe the other side’s costs? This changes the risk if you lose.
- Can I see a worked example on my type of claim? A good adviser will show you figures.
- Is the person running my case a solicitor regulated in Scotland? Our services are regulated by the Law Society of Scotland.
Do not let the fee question delay your claim
Choosing carefully matters, but time matters too. Citizens Advice says personal injury claimants in Scotland typically have three years from the date of injury, or from when they became aware of it, to start court proceedings. Evidence fades well before that. Photographs, witness details and medical records are easiest to gather early.
Our guides on the personal injury claim time limit in Scotland and the work accident time limit explain the exceptions, and our overview of success fees in Scotland goes deeper on the agreements.
FAQ
What is the maximum success fee a solicitor can charge in Scotland?
For personal injury claims it is 20% of the first £100,000 of damages, 10% of the next £400,000 and 2.5% of anything above £500,000. VAT is included. Different caps apply to other types of case.
Do solicitors have to charge the maximum?
No. The cap is a ceiling, and the Law Society of Scotland encourages clients to shop around and discuss the percentage. A firm can charge less, and we charge no success fee at all.
Can I still owe money if I lose a no win no fee case?
You do not pay your own solicitor’s basic fees, but you could be responsible for the other side’s costs unless QOCS applies, and for any insurance premium. Solicitors must explain these risks before you sign, so ask for them in writing.
Can I use a success fee agreement if I am on legal aid?
No. If you receive civil legal aid, you cannot enter into a speculative success fee agreement. Citizens Advice Scotland or a solicitor can tell you which route fits your circumstances.
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