Abstract. The numerical renormalization group is employed to study a double quantum (DQD) dot system consisting of two equivalent single-level dots, each coupled to its own lead and with a mutual capacitive coupling embodied in an interdot interaction U ′ , in addition to the intradot Coulomb interaction U . We focus on the regime with two electrons on the DQD, and the evolution of the system on increasing U ′ /U . The spin-Kondo effect arising for U ′ = 0 (SU (2) × SU (2)) is found to persist robustly with increasing U ′ /U , before a rapid but continuous crossover to (a) the SU (4) point U ′ = U where charge and spin degrees of freedom are entangled and the Kondo scale strongly enhanced; and then (b) a charge-Kondo state, in which a charge-pseudospin is quenched on coupling to the leads/conduction channels. A quantum phase transition of Kosterlitz-Thouless type then occurs from this Fermi liquid, strong coupling (SC) phase, to a broken symmetry, non-Fermi liquid charge ordered (CO) phase at a critical U ′ c . Our emphasis in this paper is on the structure, stability and flows between the underlying RG fixed points, on the overall phase diagram in the (U, U ′ )-plane and evolution of the characteristic low-energy Kondo scale inherent to the SC phase; and on static physical properties such as spin-and charge-susceptibilities (staggered and uniform), including universality and scaling behaviour in the strongly correlated regime. Some exact results for associated Wilson ratios are also obtained.