1. What Is a No Win No Fee Agreement?
A no win no fee agreement, formally called a Conditional Fee Agreement (CFA), allows you to hire a solicitor without paying any upfront legal fees. If you win your case, your solicitor receives a success fee—a percentage deducted from your compensation. If you lose, you typically pay nothing.
2. What Is the Standard No Win No Fee Percentage?
In the UK, the success fee is usually:
- Capped at 25% of your compensation
- This cap applies to personal injury claims, including road traffic accidents, workplace injuries, and medical negligence
- The 25% maximum is set by the Legal Aid, Sentencing and Punishment of Offenders Act 2012 (LASPO)
Your solicitor must disclose this percentage before you agree to the arrangement.
3. What Does the 25% Cover?
The 25% deduction generally applies to:
- General damages for pain, suffering, and loss of amenity
- Past financial losses, such as lost wages or travel expenses
Future losses (e.g., future income or long-term care) are often excluded from this deduction, meaning you keep 100% of those.
4. Are There Any Extra Charges?
Yes—while the success fee is capped, additional deductions may include:
- After the Event (ATE) insurance: Covers legal costs if you lose
- Disbursements: Costs for medical reports, court filing fees, or expert opinions
- These are usually paid from your compensation, and should be clearly explained in your agreement
Always request a full breakdown of potential deductions in writing.
5. Example Breakdown of a No Win No Fee Case
Let’s say you’re awarded £10,000 in compensation:
- 25% success fee: £2,500
- ATE insurance premium: £500
- Disbursements: £400
- You receive: £6,600
Your solicitor must provide a final settlement statement showing all deductions.
6. Can You Negotiate the Success Fee?
Yes. Some solicitors are open to negotiation, especially if:
- The case is low risk
- You have strong evidence
- The expected compensation is substantial
Don’t hesitate to ask for a lower percentage or consult other firms for comparison.
7. How Do You Know You’re Getting a Fair Deal?
To protect yourself:
- Ensure the fee is clearly stated in writing before signing
- Ask whether disbursements and insurance are included in the fee or charged separately
- Check if the fee applies to all compensation or just a portion
- Choose a solicitor regulated by the Solicitors Regulation Authority (SRA)
Transparency is key—never sign a CFA without fully understanding it.
Frequently Asked Questions
1. What happens if I lose my case under no win no fee?
You typically pay nothing if you lose, especially if you have ATE insurance covering legal costs.
2. Can a solicitor charge more than 25%?
For personal injury claims in the UK, no—they are legally capped at 25%. Higher fees may apply in commercial or non-injury cases.
3. Do I have to pay the success fee out of pocket?
No. It’s deducted from your compensation if you win—there’s no upfront payment.
4. Does the 25% include VAT?
Not always. Ask your solicitor if VAT is included in the success fee percentage.
5. Are success fees tax-deductible?
No. But compensation for personal injury is generally tax-free in the UK.
6. Can I switch solicitors mid-case?
Yes, but the new solicitor must agree to continue under no win no fee terms. Costs may transfer depending on your agreement.
Conclusion
Understanding the no win no fee percentage ensures you’re prepared for what you’ll actually receive if you win your claim. With legal caps in place and clear contracts, this model offers an affordable, risk-free way to pursue justice. Just be sure to choose a reputable solicitor, ask for transparency, and know exactly what will be deducted from your final settlement.
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