Valuable Diamond is Crux of Assets Dispute in Court
The division of matrimonial assets is often the cause of protracted legal proceedings, where parties differ on what is due to whom. In a recent Family Court case, the question...
Continue readingThis policy sets out how we deal with interest on money held by Hubbard Pegman & Whitney LLP (the firm) for a client. In accordance with the Solicitors Accounts Rules 2019, it is the firm’s policy to account to its clients for interest on a fair and reasonable basis for both the client and the firm.
When monies are received on behalf of the client, it will be paid into general client account currently with Lloyds TSB who are the firm’s bank. The general client account will hold pooled amounts for different matters for its clients. These are held on an instant access account to facilitate the transaction.
Clients are unlikely to receive as much interest as might have been obtained had they held the funds and invested the money by themselves.
The firm’s accounts department will prepare the calculation as instructed by the fee earner.
As of 1st February 2023 the firm will pay to you a rate which is equivalent to the rate our bank pays to the firm on the client account Interest is paid gross and it is the client’s responsibility to declare gross interest received to HMRC.
Interest is paid by Lloyds Bank to the firm on the aggregate of all client money held in the general client account and, subject to any interest paid to the client, is for the benefit of the firm. 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 in order for the client to claim compensation, the limit of which is currently £85,000.
This policy is reviewed from time to time by the COFA and partners of the firm.
Reviewed 2023 ( February)
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