In accordance with the SRA Accounts Rules our Firm is required to account to clients for interest on money held by us in our client account when it is fair and reasonable to do so.
The over-riding objective of this policy is to achieve a fair outcome for both the client and Ames Kent. It is our policy to pay clients interest on funds held on their behalf in our Client Account in accordance with Rule 7 of the SRA Accounts Rules.
The holding of client money is incidental to the carrying out of client’s instructions. We hold our client account funds with banks or building societies regulated by the Financial Conduct Authority and Prudential Regulation Authority.
We do not hold client money in a designated client account.
The rates of interest paid under this policy may not be as high as those obtainable by a client nor the same as the rate we receive from our bank.
Interest will be paid where the amount calculated on the balance held exceeds £50.00. Where money is held in relation to separate matters for the same client, we will treat the matters separately, unless the matters are so closely related that they should be considered together.
We will not pay interest in the following situations:-
on the first £50.00 of interest calculated by us;
on money held for the payment of disbursements;
on estate matters where the HMRC tax to be calculated and paid will be disproportionate to the sum of interest received.
Where client money is held in our general account, we will pay interest without deducting tax at source (unless it is an estate matter or our client is resident overseas, when separate regulations apply and we reserve the right to make a charge for the time spent in complying with those regulations). Our client will be responsible for declaring any interest to HM Revenue & Customs.
Interest will be calculated on a daily basis, using the rate of interest offered on our Client Account where we hold client funds. Interest will be calculated on cleared client funds. In the case of cheques received, this will be 3 days after the cheque has been deposited with our bank, and for amounts received in cash, or via credit card or debit card, standing order, BACS and CHAPS, interest will accrue from the day of receipt into our Client Account.
A client may contract out of receiving interest by signing a written agreement, available from our Accounts Manager, who must ensure that the client has been provided with sufficient information at the outset of the matter to enable them to give informed consent. Any interest credited in relation to the funds held on behalf of the client is held on account and therefore may be earmarked to be transferred against any outstanding bill balances.
This interest policy, including the de minimis limit of £50.00, will be reviewed periodically, particularly if changes are made to the Bank of England Base Rate.
