100+ Free Costs Lawyer Practice Practice Questions

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2026 Statistics

Key Facts: Costs Lawyer Practice Exam

50%

Pass mark for module assessments

ACL Training / CLSB Regulations

£3k–£4.5k

Program fee range for Diploma

ACL Training Course Specifications

£75,000

Provisional assessment financial limit

CPR 47.15

1/5th (20%)

Solicitors Act 1974 s.70(9) cost-shifting threshold

Solicitors Act 1974 s.70(9)

21 days

Deadline to serve Points of Dispute after N252

CPR 47.9

25% / 50%

Damages-Based Agreement (DBA) percentage caps

DBA Regulations 2013

The Costs Lawyer Qualification leads to entitlement to conduct costs litigation and advocacy under the Legal Services Act 2007. Administered through ACL Training and regulated by the CLSB, the program fee ranges from £3,000 to £4,500 with a 50% pass mark required per module. Official qualification assessments are written scenario examinations and practical assignments. Our practice question bank provides a 100-question multiple-choice study adaptation covering CPR Parts 44-47, Precedent H budgeting, Electronic Bills of Costs, CFAs/DBAs under the Courts and Legal Services Act 1990, Part 36 costs consequences, and Solicitors Act 1974 bill assessments.

Sample Costs Lawyer Practice Practice Questions

Try these sample questions to test your Costs Lawyer Practice exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Under Civil Procedure Rules (CPR) Rule 44.2(2)(a), what is the general starting rule regarding liability for costs in civil litigation in England and Wales?

A.The unsuccessful party will be ordered to pay the costs of the successful party

B.Each party must bear their own costs regardless of the outcome of the litigation

C.The successful party must pay 50% of the unsuccessful party's incurred legal costs

D.Costs are automatically split equally between the claimant and defendant by default

Explanation: CPR 44.2(2)(a) establishes the foundational principle that if the court decides to make an order about costs, the general rule is that the unsuccessful party will be ordered to pay the costs of the successful party. However, under CPR 44.2(2)(b), the court retains full discretion to make a different order having regard to all the circumstances, including conduct and partial success.

2When costs are assessed on the standard basis under CPR 44.3(2), how does the court resolve any doubt as to whether costs were reasonably incurred or reasonable in amount?

A.In favour of the paying party

B.In favour of the receiving party

C.By splitting the disputed amount equally between the parties

D.By referring the issue to an independent costs mediator

Explanation: Under CPR 44.3(2)(b), on a standard basis assessment, the court will resolve any doubt as to whether costs were reasonably incurred or reasonable in amount in favour of the paying party. Conversely, on an indemnity basis assessment under CPR 44.3(3), doubts are resolved in favour of the receiving party.

3Under CPR 44.3(5), which of the following is NOT one of the five mandatory statutory factors the court must consider when determining whether costs assessed on the standard basis are proportionate?

A.The subjective financial means and net wealth of the paying party

B.The sums in issue in the proceedings

C.The complexity of the litigation and any difficult novelty of questions raised

D.The conduct of all the parties and work generated by the party incurring costs

Explanation: CPR 44.3(5) lists five specific factors for assessing proportionality: (a) sums in issue, (b) value of non-monetary relief, (c) complexity, (d) additional work generated by conduct, and (e) wider public interest. The subjective net wealth or financial means of the paying party is not a statutory proportionality factor.

4If costs assessed on the standard basis are found by the Costs Judge to be reasonable in amount and reasonably incurred, but disproportionate under CPR 44.3(2)(a), what action must the court take?

A.Disallow the disproportionate costs even if they were reasonably incurred

B.Allow the costs in full because reasonableness overrides proportionality

C.Transfer the case to the indemnity basis of assessment

D.Order the receiving party to pay a court penalty fine

Explanation: Under CPR 44.3(2)(a), costs assessed on the standard basis will only be allowed if they are proportionate to the matters in issue; costs which are disproportionate may be disallowed or reduced even if they were reasonably or necessarily incurred.

5How does the rule of proportionality apply when costs are ordered to be assessed on the indemnity basis under CPR 44.3(3)?

A.The requirement of proportionality does not apply to indemnity basis assessments

B.Proportionality applies with stricter caps than on the standard basis

C.Proportionality is assessed by reference to the hourly rates only

D.The receiving party must prove that every single item was strictly proportionate

Explanation: CPR 44.3(3) expressly provides that on an indemnity basis assessment, the court will disallow costs which have been unreasonably incurred or are unreasonable in amount, but the requirement that costs must be proportionate does not apply.

6In which scenario is the court required to conduct a summary assessment of costs, unless there is good reason not to do so under CPR 44.6 and Practice Direction 44?

A.At the conclusion of a fast-track trial or an interim application hearing lasting less than one day

B.At the end of a multi-track commercial trial lasting three weeks

C.Upon the filing of a Notice of Commencement for detailed assessment

D.In all solicitor-client assessments under the Solicitors Act 1974

Explanation: CPR PD 44 paragraph 9.2 states that the court will generally perform a summary assessment at the conclusion of any fast-track trial or any interim application hearing that has lasted not more than one day.

7A solicitor representing a party at an interim application hearing intends to seek a summary assessment of costs. Under CPR Practice Direction 44 paragraph 9.5, when must Statement of Costs Form N260 be served on the opponent?

A.Not later than 24 hours before the time fixed for the hearing

B.At least 2 days before the date of the trial

C.Within 14 days after the hearing has concluded

D.At the exact moment the judge enters the court room

Explanation: CPR PD 44 para 9.5(4)(a) specifies that for interim applications, Form N260 must be served on the other party as soon as possible and in any event not later than 24 hours before the time fixed for the hearing (or 2 days before a fast-track trial).

8Where the court orders a party to pay costs to be assessed on a detailed assessment, what is the court's duty regarding interim payments on account under CPR 44.2(8)?

A.The court must order a reasonable sum on account of costs unless there is good reason not to do so

B.The court can only order an interim payment if both parties explicitly consent in writing

C.Interim payments on account are prohibited prior to the issuing of a Final Costs Certificate

D.The court must order 100% of the claimed costs to be paid immediately into court

Explanation: CPR 44.2(8) stipulates that where the court orders a party to pay costs subject to detailed assessment, it must order that party to pay a reasonable sum on account of costs by a specified date unless there is good reason not to do so.

9At an interim hearing, the judge makes an order that costs be 'costs in the case'. What is the practical legal effect of this order under CPR Practice Direction 44?

A.The party who is awarded costs at the final outcome of the main action gets the costs of the interim hearing

B.The applicant pays the respondent's costs of the interim hearing regardless of who wins trial

C.Neither party can ever recover the costs of the interim hearing from each other

D.The court reserves the costs decision to be determined by the Supreme Court

Explanation: Under CPR PD 44 para 4.2, 'costs in the case' means that the party who ultimately wins the overall proceedings and receives a final order for costs will also recover their costs of that specific interim hearing.

10What happens if a judge makes an order of 'costs reserved' at an interim application and no subsequent costs order mentioning those reserved costs is made at trial?

A.The reserved costs automatically become costs in the case

B.The reserved costs are permanently extinguished and unrecoverable

C.The applicant must automatically pay the respondent's reserved costs

D.The file must be referred back to the judge who reserved the costs for a mandatory hearing

Explanation: Under CPR PD 44 para 4.2, where costs are reserved and no further order is made regarding them at trial or final order, the reserved costs automatically follow the outcome of the overall case and become 'costs in the case'.

About the Costs Lawyer Practice Exam

The Costs Lawyer Qualification (Diploma in Costs Law and Practice) is the qualifying course for regulated Costs Lawyers in England and Wales. Regulated by the Costs Lawyer Standards Board (CLSB) and delivered by ACL Training, the program costs between £3,000 and £4,500 and requires a 50% pass mark. The official assessment consists of written and scenario-based assessments across civil costs law, solicitors' retainer law, cost budgeting, and detailed assessment. This study hub provides 100 English-language MCQ practice questions adapted from the underlying statutes (CPR Parts 44-47, Solicitors Act 1974, Courts and Legal Services Act 1990) and Senior Courts Costs Office (SCCO) practice.

Assessment

Performance-based assessment

Time Limit

Varies by module assignment/assessment

Passing Score

50%

Exam Fee

£3,000–£4,500 program fee (Costs Lawyer Standards Board (CLSB) / ACL Training)

Costs Lawyer Practice Exam Content Outline

20%

CPR Parts 44-47 & General Cost Principles

Standard vs indemnity basis, CPR 44.3(5) proportionality test, summary assessment rules, interim payments on account, orders for costs, misconduct, interest on costs under Judgments Act 1838

20%

Detailed Assessment Procedure & Bills of Costs

N260 summary assessment, Electronic Bill of Costs (Precedent S), Notice of Commencement (N252), Points of Dispute, Replies, provisional assessment (£75k limit, £1,500 costs cap), detailed assessment hearing

20%

Cost Budgeting & Management (Precedent H)

Precedent H phase breakdown, Precedent R discussion report, Cost Management Orders (CMO), budget variation applications under CPR 3.15A, CPR 3.18 good reason departures on assessment

20%

CFA, DBA & Funding Arrangements (Solicitor-Client)

Conditional Fee Agreements (CFA), Damages-Based Agreements (DBA Regulations 2013), ATE insurance, Solicitors Act 1974 s.70 detailed assessment, one-fifth rule (s.70(9)), interim statute bills vs on-account bills

20%

Costs Advocacy, Settlement & Part 36 Costs

Part 36 offers and statutory costs consequences (CPR 36.17), Calderbank offers, costs advocacy before Costs Judges/Masters, wasted costs orders (s.51 SCA 1981), ADR and mediation costs

How to Pass the Costs Lawyer Practice Exam

What You Need to Know

Passing score: 50%
Assessment: Performance-based assessment
Time limit: Varies by module assignment/assessment
Exam fee: £3,000–£4,500 program fee

Keys to Passing

Work through all 100 available questions
Review every answer and explanation
Track weak areas and revisit them
Use our AI tutor for tough concepts

Costs Lawyer Practice Study Tips from Top Performers

1Memorise the two-stage proportionality test under CPR 44.3(5): first assess reasonableness of individual items, then apply the overall proportionality check against the 5 statutory factors.

2Master the Precedent H phase structure (Pre-action, Issue/Pleadings, CMC, Disclosure, Witness Statements, Experts, PTR, Trial Prep, Trial, Settlement/ADR).

3Understand CPR 36.17 consequences for both claimant and defendant offers, including the 4 distinct remedies awarded to a claimant who beats their own Part 36 offer at trial.

4Distinguish an interim statute bill (which triggers the 12-month s.70 clock) from a request for payment on account (which does not start the statutory assessment period).

5Know the cap on provisional assessment costs under CPR 47.15 (£1,500 plus court fee and VAT) and the 20% improvement threshold required to recover costs of an oral hearing request.

6Remember the DBA percentage caps: 25% for first-instance personal injury (excluding future care/loss), 35% for employment tribunals, and 50% for commercial litigation.

Frequently Asked Questions

What is the official assessment format for the Costs Lawyer Qualification?

The official qualification delivered by ACL Training and regulated by the CLSB uses written scenario assessments, drafting exercises, and coursework assignments. Candidates must achieve a 50% passing score in each module. Our practice bank offers an English-language MCQ study adaptation to test key statutory rules and procedural mechanics.

What are the fees and pass mark for the Diploma in Costs Law and Practice?

The overall program fee typically ranges between £3,000 and £4,500 depending on module enrollment and study mode. The passing score for all module assessments is 50%.

What legislation and procedure rules are tested?

The qualification covers CPR Parts 44-47, CPR Part 36, Courts and Legal Services Act 1990 (ss.58 & 58AA for CFAs and DBAs), Solicitors Act 1974 (ss.70-74 for solicitor-client assessment), LASPO 2012, and Senior Courts Costs Office (SCCO) Practice Directions.

What rights of audience does a qualified Costs Lawyer hold?

Under the Legal Services Act 2007, qualified Costs Lawyers registered with the CLSB hold statutory rights of audience to conduct costs litigation and advocacy in all courts in England and Wales.

How are costs budgets reviewed on detailed assessment?

Under CPR 3.18, where a cost management order has been made, the court on detailed assessment will not depart from the agreed or approved budget for each phase unless there is a 'good reason'. Under-spending on budgeted phases cannot be automatically transferred to over-spent phases without court approval.

What is the 'one-fifth rule' under section 70 of the Solicitors Act 1974?

On a solicitor-client detailed assessment under section 70(9) of the Solicitors Act 1974, if the solicitor's bill is reduced by one-fifth (20%) or more, the solicitor pays the costs of the assessment. If the reduction is less than one-fifth, the client pays the costs of the assessment.