CA-2024-001898 - [2025] EWCA Civ 1392

“35A Power of High Court to award interest on debts and damages.

Subject to rules of court, in proceedings (whenever instituted) before the High Court for the recovery of a debt or damages there may be included in any sum for which judgment is given simple interest, at such rate as the court thinks fit or as rules of court may provide, on all or any part of the debt or damages in respect of which judgment is given, or payment is made before judgment, for all or any part of the period between the date when the cause of action arose and—

in the case of any sum paid before judgment, the date of the payment; and

in the case of the sum for which judgment is given, the date of the judgment.

…

Interest under this section may be calculated at different rates in respect of different periods.”

Although s.35A SCA 1981 is expressed in discretionary terms, it is well established that interest is required to be awarded to claimants in order to provide an adequate remedy under EU law. Further, under the terms of the FII SC3 Order the interest rate payable under s.35A in respect of claims to surplus ACT has been fixed at a rate which is, from February 2009, bank base rate plus 2%.

Section 85 FA 2019 makes specific provision in respect of “unlawful ACT”. It relevantly provides: