This morning, the Lord Chancellor confirmed that the discount rate applicable to personal injury claims in England and Wales would be amended from the current rate of 2.5% to -0.75%.
Currently there is no change to the discount rate in so far as it applies to the Isle of Man cases. By the Damages (Personal Injury) Order 2014 (with reference to Section 24(1) of the Law Reform Act 1997) the rate applicable to the Isle of Man was set at 2.5% by the Treasury. It was confirmed in the decision of De Yoxall v Moore that this rate would be upheld and would be departed from in exceptional cases only in which the specific facts of the case meant that a different rate would be more appropriate.
The discount rate in the Isle of Man will remain at 2.5% unless and until it is amended (or the Damages (Personal Injury) Order 2014 is superseded) by the Treasury.