The court may order costs between the parties to be assessed on either the standard basis or the indemnity basis. On either basis, the court will not allow costs which have been unreasonably incurred or which are unreasonable in amount.

On the standard basis, the court will only allow costs which are proportionate to the matters in issue and will resolve any doubt which it may have as to whether costs were reasonably incurred or reasonable and proportionate in amount in favour of the paying party: (CPR 44.3(2)).

Where the court assesses costs on the indemnity basis it will resolve any doubt which it may have as to whether costs were reasonably incurred or were reasonable in amount in favour of the receiving party (CPR 44.3(3)).

In legally aided cases, costs are payable to solicitors and counsel on the standard basis subject to Regulations which prescribe the amounts to be allowed in certain cases.

In respect of costs payable to a solicitor by his client, the basis of assessment is the indemnity basis to which certain presumptions and limitations apply (see CPR 46.9 and the Part 46 Practice Direction (para 6.1)).