In a case which has been allocated to the small claims track, the court may not order a party to pay costs to another party except in the limited circumstances set out in CPR 27.14(2). These include the fixed costs attributable to issuing the claim payable under CPR Part 45 Section I, and any costs which the court summarily assesses and orders to be paid by a party who has behaved unreasonably.

The court also has the power to order a party to pay court fees paid by another party and expenses which a party or a witness has reasonably incurred in attending court. The Part 27 Practice Direction (paras 7.2 and 7.3) set out the maximum amounts which the court may allow.

The limits on costs also apply to any fee or reward for acting on behalf of a party to the proceedings, charged by a lay representative exercising a right of audience (CPR 27.14(4)).