Set-Off
A defence or counterclaim that allows a defendant to reduce the claimant's claim by an amount the claimant owes to the defendant. Legal set-off requires liquidated (fixed or ascertainable) cross-claims.
Independent editorial summary — not the official statute text. Read the official version on legislation.gov.uk.
Set-off in civil litigation is governed procedurally by rule 16.6 of the Civil Procedure Rules, which addresses the situation where a defendant 'contends that they are entitled to money from the claimant' and relies on this as a defence to the whole or part of the claim. The rule allows that contention to be pleaded within the defence itself and set off against the claimant's claim, reducing or extinguishing the sum for which judgment can be given.
A distinctive feature of set-off under CPR r.16.6 is that it can be raised 'whether or not it is also an additional claim' — meaning a defendant can rely on the same facts both as a straightforward set-off reducing the claimant's recovery and, separately, as a counterclaim for any balance owed to them. This dual character is what distinguishes set-off from a bare counterclaim: a successful set-off operates as a shield within the existing claim, rather than requiring the defendant to establish an independent cause of action to recover the excess.
Related terms
Official sources
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