- Subject to the circumstances set out in this policy and the Solicitors Accounts rules 7.1 and 2, if we hold money for you in our general client account, we will pay you a gross sum in lieu of interest and it is your responsibility to inform HMRC of the interest received.
- We will not account to you for any interest in the following situations:
(i) if the amount calculated is £50 or less.
(ii) on money held for the payment of a professional disbursement if the person to whom the money is owed has requested a delay in settlement.
(iii) on an advance from us into our general client account to fund a payment on your behalf.
(iv) If you have contracted out of receiving interest by signing a written agreement with the firm as per 7.2 of the Solicitors Accounts rules.
- We will calculate the interest and pay it to you when your matter has been concluded or unless as otherwise requested.
- If any money is held on your behalf for a fixed term over a long period of time (e.g. rent deposit) we will calculate and pay interest quarterly or as agreed with you or other third parties where applicable.
- This must be notified to the accounts department.
- In calculating interest, we apply a rate that we believe reflects the market rate of interest paid on an instant access Business Reserve Instant Access Account offered by our bank, the Royal Bank of Scotland plc, over the period that interest is due. See below link:
https://www.rbs.co.uk/business/savings/business-reserve.html?q=Business+Reserve+Account+Rates+effective+from+4th+July+2023&brand=RBS§ion=business&enginekey=Tf8TzMXzi9r4vwvyu4pg#interestrates
(i) the period between the date when the relevant funds received by us clear our account.
(ii) if we send funds electronically, the date when the funds are sent; or
(iii)if we send funds by cheque, four days after a cheque is raised.
- We believe a rate of 1.45% with effect from 14.12.2023 is fair and reasonable and is the rate we will use if we account to clients for interest. For funds held prior to that date prior interest rates will be used. This rate will be reviewed in six months’ time: 14.06.2024 or if there is an operational requirement do so.
- Interest on funds held in our client account is paid without any deduction of tax. It is therefore your responsibility to inform HMRC, or relevant tax authority, of any amounts of interest you receive from us.
