Interest Policy
Burges Salmon's interest policy is designed to treat our clients fairly and transparently.
Our principal bankers are Lloyds TSB Plc
Monies held on General Client Account
Any monies held on your behalf will be on 'General Client Account'. This account is an instant access account and will track the rate of what is known as the 'Lloyds TSB Corporate Call Account'. For the current rates please check Lloyds TSB's web site.
We will routinely monitor these interest rates in order to ensure that, in our opinion, they are reasonable and competitive for instant access accounts.
Funds are held on instant access accounts to ensure we are able to facilitate your transaction as efficiently as possible. Rates for these types of accounts may not be as high as those you may be able to achieve if you were investing the monies yourselves.
Interest will be calculated on a monthly basis, but may not be paid to you until the end of the matter. There will be exceptions where we have matters which typically by their nature may run on for some time, for example Trust matters.
Interest will not be applied where the sum is less than £20. For clarity, this relates to the whole of the period for which client monies are held and not just the sum in excess of £20.
Any amounts paid in lieu of interest from Burges Salmon LLP are paid gross of any tax liability unless stated otherwise, and will therefore need to be included on your tax return as taxable income.
Designated Accounts
There is a facility to open designated accounts which can offer better rates, but these are subject to a minimum of £250k and have notice periods. If this is required, separate individual discussions will be needed. The banks currently being used for deposits are Lloyds TSB or NatWest Bank Plc. Interest paid on these accounts may be paid net or gross of basic rate tax at source according to your tax status.
Opt Out Process
If for any reason you wish to 'opt out' of any interest being payable on a matter or range of matters please ensure this is made clear and in writing to us when accepting our terms and conditions.
Un-presented Cheques
If you fail to present a cheque drawn on Burges Salmon LLP's Client Bank account we reserve the right not to recalculate the interest and / or make a reasonable charge for the additional administration incurred.