1. General Principles:

• This firm aims to treat all clients fairly and transparently in relation to the handling of client monies.
• Interest will be calculated and paid in accordance with the principles outlined in this policy.
• The firm reserves the right to amend this policy from time to time, and any changes will be communicated to clients as appropriate.

2. Compliance with SRA Accounts Rules:

• Rule 7 of the Solicitors Regulation Authority (SRA) Accounts Rules 2019 requires that we account to clients or third parties for a fair sum of interest on any client money held by us on their behalf.
• We may, by written agreement, come to a different arrangement with the client or third-party regarding interest payment, provided we give sufficient information for informed consent.
• It is our policy to account for interest on a fair and reasonable basis for both the client and the firm.

3. Circumstances Where Interest Will Not Be Paid:

• We will not account to you for any interest in the following situations:
  • If the amount calculated is £50 or less, as the administrative costs would exceed the interest due (the “de minimis rule”)
  • On money held for the payment of a professional disbursement.
  • If we have an agreement to contract out of the provisions of this policy.
  • On conveyancing and commercial property matter or other property transactions.
  • On any sum held for 10 working days or less (irrespective of the de minimis rule”

4. Circumstances Where Interest Will Usually Be Paid:

• We will usually pay interest in the following circumstances:
  • Where we are, or are acting for, the personal representatives of a deceased estate and where we collect assets belonging to the deceased prior to distribution to beneficiaries.
  • Where we are, or are acting for, the trustees of any express trust.
  • Where we have specifically agreed in writing that we will do so.

5. Interest Rate and Calculation:

• In respect of 4.1 – 4.4 above, the interest rate we pay may be lower than rates obtainable by direct client deposits.
• The interest rates used are consistent with those published by NatWest for their Client Deposit Accounts.
• Interest will be calculated from the time funds become cleared for interest purposes, subject to the de minimis rule of £50.
• Interest may be calculated at any time, usually towards the conclusion of a matter, and will be added to the Client Account, typically at the request of the Fee Earner managing the matter.

6. Taxation:

• All interest paid under this policy is paid gross.
• It is your responsibility to notify HMRC of any interest received and to calculate and pay any tax due.
• We will not notify HMRC or pay tax on your behalf, unless otherwise advised.

7. Payment of Interest.

• Interest will be credited to the client’s account at the conclusion of the matter or at any period during the administration of the matter as requested by the Person Acting, subject to the conditions above.

8. Review:

• This policy will be reviewed periodically to ensure compliance with relevant regulations and best practice.
• Any changes to this policy will be published on our website.

Version 1.2025