In line with Rule 7.1 of the Solicitors Accounts Rules 2019, we are required to account to our clients for an amount in lieu of interest on monies we hold on behalf of clients on a fair and reasonable basis.
Thank you for reading this post, don't forget to subscribe!
To this end, our policy is as follows:
- All client monies (except those in respect of disbursements or an advance by the firm to a client or mortgage advances) are deposited and pooled in an undesignated (general) client account, allowing instant access in order to facilitate transactions performed on behalf of our clients.
- Because this account is instant access, it is highly unlikely that the rate of interest we pay you, less our administration costs of 0.5% of the rate paid from time to time by our bank, will be as high as you would receive were you to invest the monies yourself.
- Interest is always calculated at a rate equivalent to that available from time to time to this firm after the transaction has concluded and with reference to the date funds became cleared for interest purposes.
- Like many other firms, we will make no interest payment unless it exceeds a minimum sum. In this instance, our minimum sum is £100.00.
- In respect of funds held on behalf of an estate, interest is apportioned to each individual having a beneficial interest in the estate and the minimum sum referenced in point 4 above accordingly applies to each said individual.
- We reserve the right to offset any interest due under this policy against any sums owing to us, including interest applicable on bills raised but not yet paid.
- Please note that any interest paid is paid gross of tax. It is therefore your responsibility to declare the sum of interest received and, subject to your individual circumstances, pay any tax liability arising from the declared payment.
- You may, should you wish (e.g. for religious or other reasons), contract out of this policy. In that instance, please contact the fee earner noted in your Terms of Business.
