Interest Policy

This policy sets out how we deal with interest on money held by Gosschalks LLP. In accordance with the Solicitors Accounts Rules.

Money held in a designated client account – we will account to you for all the interest earned on that account (net of any tax deducted at source).

Money held in a general client account – we will account to you for interest when it is fair and reasonable to do so in all circumstances having regard to the principles and practices below.

  • We will normally calculate and pay interest once your matter has been concluded.

  • When calculating interest, we will apply a rate equivalent to Lloyds instant access account, the rate(s) of gross interest being those published by the bank.

  • Interest paid will be calculated over the whole period for which the funds are treated as cleared in the firm’s client bank account.

  • Where we are conducting more than one matter for you, balances will not be aggregated for calculation purposes.

  • Where interest is paid gross, i.e., prior to deduction of tax. It remains the responsibility of the client to declare the interest earned to HM Revenue and Customs.

  • We will not pay interest on money held:

    a. For payment of a professional disbursement once counsel or other professional has requested a delay in settlement.

    b. For the Legal Aid Agency.

    c. On an advance from us into our general client account to fund a payment on your behalf in excess of funds already held for you in that account.

    d. If there is an agreement to contract out of the provisions of this policy.

    e. If the sum calculated is less than £50 in total for the full period during which we hold your money in client account.

If the bank in which the firm holds funds should fail, the firm reserves the right to disclose to the FSCS the names and other details for clients whose money is held on the general client account for the client to claim compensation, the limit of which is currently £85,000.

This policy is reviewed by the Compliance Officer for Finance and Administration (COFA).

Last updated:March 2023