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HMRC internal manual

Debt Management and Banking Manual

Ordinary Cause: Taxation of expenses

 Before extract decree is obtained any expenses allowed must be taxed by the auditor of court.

Action by the debt manager

As soon as decree has been awarded, the debt manager should prepare an account of expenses and submit it together with the appropriate fee to the sheriff clerk.

The account of expenses is split into two sections. – One being outlays and the other being fees.

Outlays are the actual expenses paid to the sheriff officer for serving writs, motions and court fees.

The fees chargeable are laid down by the Rules of the Court and from time to time are updated by means of an Act of Sederunt. The current fees chargeable are as detailed in the table at DMBM681880. Debt Management Edinburgh Group Office will update this table as and when the fees change and will inform you when this is necessary.

Debt Management offices are entitled to charge at the rate of two thirds of the fee chargeable by a Solicitor and these fees are shown in the right-hand column of the table.

Whenever HMRC Solicitors Office have been involved in any part of the defended action process, when completing an account of expenses, you must check with them to ensure that you also detail any fees they wish included in the account.

Receiving an intimation of a diet of taxation

On receipt of such an intimation from the auditor of court you must intimate by means of a recorded delivery letter the date fixed for the diet of taxation to the defender. You must at the same time supply the defender with a copy of the account of expenses.

Attending diet of taxation

The debt manager must attend the diet of taxation and if the defender does not attend, will require to provide the auditor with proof of intimation.

Procedure for diet of taxation

At the diet of taxation, the auditor will hear parties and after taxing the account will append a certificate to the account certifying the amount at which the account has been taxed.

If the defender attends the taxation, he may lodge an objection with the sheriff clerk within 7 days of the taxation. If no objection is lodged, the sheriff will approve the auditor of court’s report and grant decree for the taxed expenses.

Some sheriff’s may ask that you enrol a motion for the court “to approve the auditor’s report on the pursuer’s account of expenses and for decree in terms thereof”.

If asked to do this you should comply but no fee should be required and there should be no need to intimate this action to the defender.