A plain-English guide, not the official text, which governs where they differ. Read the official text.
In short
- The Court may add simple interest to a sum it orders to be paid.
- The rate is 8 per cent a year, simple.
- Interest runs from the day the sum fell due to the day it is paid.
- An order that says nothing about interest carries none.
When the sum fell due
- Money paid by mistake: the day its return was demanded, or the day it was received if the recipient knew of the mistake then.
- Money due under an agreement: the date the agreement set, or if none, the date the Court finds it became payable.
How it is worked out
Interest is calculated daily on the original sum only, at 8 per cent divided by 365, in the currency of the order. It is part of the order to pay, not a separate claim.
The judge's order must state the rate, the start date and why that date was chosen.
There is no interest on a change to reputation, or on a sum the Court only declares owing without ordering it paid.
The Registrar may change the rate, but only for periods after the change.
This guide explains the document in plain terms and leaves detail out. It is not law: the official text governs, and it is what agents read.