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you need to check first of all whether you can - there are limitations on residency of person being sued, not sure whether Gibraltar is included.
yes, you add on court costs & interest etc. - very good website called Money Claim Online which will talk you through it all: https://www.moneyclaim.gov.uk/
Consider also - if your action is successful, what is the likelyhood that the defendent will pay up and if applicable costs for recovery (assuming successful).