Interest Policy
Section 1: Scope and purpose of policy
We are required by the Solicitors accounts rules to pay clients fair and reasonable interest on
client money held by us on their behalf, as part of carrying out their instructions to us.
Section 2: Application of interest for client funds held.
2.1 Where the holding of client monies is incidental to the carrying out of instructions for
legal work, the interest rate is unlikely to be as high as the rate clients might be able
to achieve when depositing the money themselves in a bank or savings account. This
is because client money held in our client account must be available immediately or on
demand when required for the purpose of the work instructed.
2.2 All client monies held in our general client account will have interest applied at the rate
that would apply to a standard current account with our primary bank, HSBC.
2.3 Interest will be payable for the period we hold the relevant client money and will be
calculated from when the funds have been cleared through the banking system.
2.4 Interest will be calculated at the conclusion of the relevant matter and on a quarterly
basis, 1 March, 1 June, 1 September and 1 December. If the amount of interest as at
any such calculation date is less than the minimum specified in 2.5 below, interest will
not be payable and will not be credited to the client ledger balance.
2.5 Due to regulatory requirements and administrative costs involved, we will not pay
interest if the sum calculated is less than £50 in total for the full period during which
we hold money in our client bank account.
2.6 We will not provide periodic interest statements but will account to clients for interest
at the conclusion of the matter, with a written statement of the interest earned. Clients
are welcome to enquire about the amount of interest, if any, earned on their matter at
any time, by contacting the lawyer advising them.
2.7 We reserve the right to set off any interest due to clients against any amounts due to
us.
2.8 Where we agree with a client that funds should be held in a separate designated
deposit account, interest will be payable at the rate of interest which is received by us
on the monies held. The rate of interest will vary depending on the specific account
being used and the circumstances of the arrangement.
Section 3: Circumstances in which Interest will not be paid.
3.1 Where the amount of interest is below £50 as defined in 2.5 above.
3.2 On money held by us on account of costs received from a third party.
3.3 On money held by us on account of any professional disbursement.
3.4 On balances held by us for a public funded matter (Legal Aid).
Section 4: Tax Liability
Interest will be credited before deduction of tax. It will be the responsibility of the client to
declare interest received to HMRC and any other, relevant authority, and to pay any tax due
as a consequence.
Section 5: Monitoring and Review
5.1 This policy will be reviewed on an annual basis by the firm’s Compliance Officer for
Finance and Administration (COFA).
5.2 The rate of interest paid to our clients will be reviewed monthly.
5.3 The policy and any updates will be published on the firm’s intranet site and
communicated via any other appropriate communication tool in use within the firm at
that time.
20th January 2025