Client Account Interest Policy

In accordance with the SRA Accounts Rules we are required to account to clients or third parties for a fair sum of interest on any client money held by us on your behalf.  It is therefore SMB’s policy to account to its clients for interest on a fair and reasonable basis for both the client and the firm.

When money is received on behalf of a client it will be paid into a general client account with Royal Bank of Scotland plc (“RBS”), the firm’s bankers. This general client account will hold pooled amounts for different matters and clients.

The interest rate and threshold for payment will be reviewed at regular intervals by SMB’s finance team – usually when RBS adjust their interest rates after the Bank of England have changed the rates.

SMB will calculate interest on completion of any client instruction/return of monies to clients.  If the calculated interest accrued for the duration of the matter is less than £50 no interest will be paid to the client on the basis that it is a de minimus amount. The firm takes the view that any amount below £50 is reasonably retained by the firm to cover the administrative costs of dealing with client funds.

We reserve the right to set off any interest due to you against any amounts due to us.

Interest will not be paid where we have held monies on account of costs and disbursements.

Where client monies are held in our client account, we will pay interest without deducting tax at source.  Our clients will be responsible for declaring any interest to HM Revenue & Customs.

If we hold money in a separate designated client account on your behalf, we will account to you for all the interest earned on that account.

Where client money is held in a foreign currency, the rate of interest to clients will take into account the rate of interest received from the bank on money held in that currency and will be calculated on a fair and reasonable basis for both the client and the firm.

This policy will be reviewed from time to time to ensure that it continues to deliver a fair outcome to clients.