Claiming interest
Claiming interest

The following Dispute Resolution guidance note provides comprehensive and up to date legal information covering:

  • Claiming interest
  • What interest can you seek to recover in any claim?
  • The different types of interest you might plead in a claim
  • Claiming interest under the court's discretion to award interest
  • Claiming interest under a contractual right to interest
  • Claiming interest under the Late Payment of Commercial Debts (Interest) Act 1988
  • Claiming interest under the court’s equitable jurisdiction
  • When can you seek to recover compound interest, rather than simple interest?
  • Interest on foreign currency claims
  • Pleading interest in the claim form and particulars of claim
  • more

This Practice Note provides guidance on the interpretation and application of the relevant provisions of the CPR. Depending on the court in which your matter is proceeding, you may also need to be mindful of additional provisions—see further below.

This Practice Note provides guidance on claiming interest when issuing a claim. For information on claiming interest on judgment debts, see Practice Note: Interest on judgment debts.

What interest can you seek to recover in any claim?

You should be aware that the following opportunities may arise to seek interest in respect of a claim:

  1. pre-judgment interest—a specific claim to interest—when completing the claim form and particulars of claim you should include a claim for interest as appropriate, see: Pleading interest in the claim form and particulars of claim

  2. post-judgment interest (also known as 'judgment debt interest')—if and when a judgment for a sum of money is ordered, then 'judgment debt interest' (currently at 8%) will (generally) start to run from the date of judgment until satisfaction. See Practice Note: Interest on judgment debts

  3. interest on any costs awarded—where the court determines costs as part of a claim (whether on an interim application and/or on final judgment) there may be scope to seek to recover interest on any costs sum awarded. See Practice Note: Cost orders—interest, payment and enforcement—Interest on costs. This