Interest policy 2019—law firms

The following Practice Compliance precedent provides comprehensive and up to date legal information covering:

  • Interest policy 2019—law firms
  • 1 Amount of interest
  • 2 Circumstances in which interest will not be paid
  • 3 Amount of interest
  • 4 Tax liability
  • 5 Monies held on more than one matter
  • 6 Interest payment dates
  • 7 Special cases
  • 8 Unpresented cheques
  • 9 Contracting out
  • More...

Interest policy 2019—law firms

    1. 1

      Amount of interest

      We will pay a fair sum of interest to clients or third parties on any client money we hold on their behalf.

    1. 2

      Circumstances in which interest will not be paid

      We will not pay interest:

      1. 2.1

        on money we are instructed to hold outside a client account in a manner that does not attract interest, eg cash held in our safe;

      1. 2.2

        where the amount of interest, calculated in accordance with this policy, is less than £[20][—on the basis that the costs associated with paying that interest are disproportionate to the amount involved];

      1. 2.3

        where we come to a different arrangement, in writing, with the client or third party for whom the money is held—where we do so, we will provide sufficient information to enable the client or third party for whom the money is held to give informed consent (see ‘Contracting out’ at section 9 below);

      1. 2.4

        [insert other]

    1. 3

      Amount of interest

      1. 3.1

        Client money can be held in a separate designated client account (SDCA) or in our general client account. An SDCA is an account for money relating to a specific client, trust or third party. Our general client account is an account in which we hold money relating to multiple clients or third parties.

      1. 3.2

        Interest on money held in an SDCA

        1. 3.2.1

          As a general rule, where we reasonably expect to hold

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