New Practice Note Tightens Access to the Commercial Court
Introduction
A new Practice Note for the Commercial Court and London Circuit Commercial Court was issued on 6 June 2025. This Practice Note raises the value thresholds at which cases will generally be transferred out of the Commercial Court to the London Circuit Commercial Court and the County Court.
The changes reflect a concerted effort to manage judicial resources more efficiently, ensuring that the Commercial Courts can focus on the most complex and high-value cases.
Increased Claim Value Transfer Thresholds
With effect from 1 July 2025, cases issued in the Commercial Court with a value under £7 million (excluding interest and costs), or the equivalent in a foreign currency, will generally be transferred to the London Circuit Commercial Court.
The London Circuit Commercial Court will generally transfer claims with a value of under £1 million (excluding interest and costs) are likely to be transferred to an appropriate County Court.
These thresholds represent an increase in the previously applicable financial thresholds (approximately £5 million or less, and less than £500,000 respectively) for transfer, compared to previous practice.
Key Factors Influencing Transfer Decisions
The Practice Note recognises that retention by the Commercial Court or London Circuit Commercial Court will be justified in certain circumstances.
In deciding whether retention is justified, the factors set out in CPR r. 30.3(2) must be considered. These include:
The financial value of the claim and the amount in dispute, if different
Whether it would be fairer or more convenient for hearings to be held in a different court
The availability of specialist judges in the relevant court
The nature and complexity of the facts, legal issues, remedies, or procedures in the case
Whether the outcome of the claim is important to the public in general
The facilities available to the court
Whether a declaration under s.4 of the Human Rights Act 1998 is sought or may be required
These factors give the court flexibility to retain cases in the Commercial Court or London Circuit Commercial Court lists where appropriate, despite the updated value thresholds.
Opportunity to Make Representations
Importantly, the Practice Note confirms that the issuing party (and any other parties who have been served) will continue to have the opportunity to make representations before any transfer takes place.
This means that where a party believes the Commercial Court or London Circuit Commercial Court remains the appropriate forum, whether due to the nature of the dispute, its urgency, its international character, or its complexity, they will have the opportunity to make that case.
Parties should be prepared to respond proactively to any invitation to make representations to explain their views on the most appropriate court to hear their claims.
What the Threshold Increases Mean for Parties
As a result of the increased thresholds, a wider range of cases are now likely to be transferred out of the Commercial Court and London Circuit Commercial Court.
This may affect parties’ expectations when choosing the forum to resolve their commercial disputes, particularly for claims valued between £1 million and £7 million that might previously have proceeded in the Commercial Court or London Circuit Commercial Court.
Parties should carefully consider whether to challenge a transfer when the value of their claim is close to the new transfer limits, particularly if a claim involves complexity, urgency or international elements that might justify retention by the court in which the claim was issued.
Strategic Considerations
For parties involved in commercial disputes in England and Wales, the new guidance underscores the importance of early procedural planning. Parties may wish to review:
Forum selection clauses in existing and future contracts, particularly where access to the Commercial Court is a strategic priority.
The value of any claims to be issued in the Commercial Court or London Circuit Commercial Court, to ensure claims are issued in the correct court or retention by a more senior court is likely to be justified by reason of the CPR r. 30.3(2) factors.
Litigation budgets, considering any potential cost implications of a transfer and/or the claim proceeding in a different court.
Conclusion
Parties involved in commercial proceedings, or considering issuing a claim, should be mindful of the new value thresholds that apply. In certain cases, it may be appropriate to issue claims in a County Court instead, or anticipate the need to prepare representations to justify retention of a claim by the Commercial Court or London Circuit Commercial Court.
The Practice Note is available in full on the Court and Tribunals Judiciary website here.
This article is intended for information purposes only and provides a general overview of the relevant legal topic. It does not constitute legal advice and should not be relied upon as such. While we strive for accuracy, the law is subject to change, and we cannot guarantee that the information is current or applicable to specific circumstances. Costigan King accepts no liability for any reliance placed on this material. For further details concerning the subject of the article or for specific advice, please contact a member of our team.
Amanda Lee
Disputes Specialist
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