- The SRA Standards and Regulations Accounts Rules require that where we hold money in Client Account for a client or for a person funding all or part of our fees, we must account for interest when it is fair and reasonable to do so in all the circumstances.
- Our main general Client Account is with Lloyds Bank plc. The rate of interest that the banks provide may not be as high as each individual client might be able to achieve in their own personal current accounts.
- We must be able to release a client’s money without delay when required by the client so the rate of interest paid by the bank may not be as high as would be paid if the money was held in a deposit account or an account where a minimum notice of withdrawal has to be given to the bank.
- We will pay a fair sum of interest to clients on any client money we hold of their behalf which may change from time to time depending on the rates we receive.
- Monies held on Client Account for the same client but in respect of separate matters will be treated as separate balances for the purposes of payment of interest.
- Interest will only be paid on cleared funds. How quickly funds clear will depend largely on the method by which they are paid into our bank.
- Interest will generally be calculated at the end of the tax year or at the conclusion of the matter, whichever first occurs.
- We will not generally pay interest:
- when the interest payable under 4 above does not exceed £50
- on money held for payment of a professional disbursement (such as counsel’s or expert’s fees) when the professional has requested a delay in settlement of his/her/their fees
- where the money in Client Account is an advance from us to fund a payment on behalf of a client
- where there is a written agreement between us and the client contracting out of Standard 7.1 of the Accounts Rules
- When we pay out interest this is subject to tax. If the recipient is resident in the UK, the payment is passed on without deduction and the recipient is responsible for declaring the income to the relevant tax authorities. If the recipient is resident outside the UK, different rules apply and we will confirm the arrangements with the recipient in that eventuality.
