Interest on Client Funds
We hold client money in a designated client account in accordance with Rule 7 of the Solicitors Regulation Authority (SRA) Accounts Rules. This section explains our policy on the payment of interest on funds held on your behalf.
1. Entitlement to Interest
We will pay a fair and reasonable amount of interest on client money where it is appropriate to do so, having regard to:
- The amount of money held
- The length of time it is held
- The current interest rates available
- The administrative costs involved
2. When Interest Is Not Payable
No interest will be paid:
- Where the amount calculated is less than £20, as this is considered a de minimis amount.
- Where funds are held for short periods or in circumstances where minimal interest would accrue.
- Where money is held in an instant access account for transactional convenience.
3. Calculation and Payment
Interest is calculated at a rate comparable to that available from a high street bank on an instant access business account. Unless otherwise agreed, any interest due will be calculated and paid at the conclusion of your matter or at appropriate intervals in longer matters. It is unlikely that a client will receive as much interest as might have been obtained had the funds been invested by the client itself.
4. Designated Deposit Accounts
If we hold significant sums of money for you over an extended period, we may place those funds in a separate designated client deposit account. In such cases, you will receive the full amount of interest earned on that account, subject to any applicable tax.
Note: Interest is paid gross and it is the client’s responsibility to declare gross interest received to HMRC.