Interest on damages calculator: general damages, past losses and the special account rate

Last updated 28 September 2026 · By Mustafa Bilgic · Rules from the Senior Courts Act 1981, the County Courts Act 1984 and published court judgments; rates from the Court Funds Office

This page explains where each rate comes from, lists every special account rate since 2009 and works out the interest on your general damages, past losses and one-off expenses up to a trial or settlement date. It follows the approach of the courts in England and Wales, with notes on interest after judgment, tax and Scotland.

What the law says

Section 35A of the Senior Courts Act 1981 lets the High Court include simple interest, at such rate as it thinks fit, on damages for all or part of the period between the date the cause of action arose and the date of judgment, or the date of an earlier payment. For a judgment for damages for personal injuries or death which exceed £200, the words change from "may be included" to "shall be included", unless the court is satisfied that there are special reasons to the contrary. Interest may be calculated at different rates for different periods. Section 69 of the County Courts Act 1984 says the same for the county court.

The Act leaves the rate to the judge, so the rates in practice come from case law:

In Jefford v Gee, Lord Denning explained that interest on lost wages could in principle be worked out week by week, but that it would be fair in ordinary cases to allow interest on the total special damages from the accident to the trial at half the rate. For future losses there should be no interest, because the claimant receives that money in advance. In Wright v British Railways Board, Lord Diplock said the 2% guideline adopted in Birkett v Hayes should continue to be followed, with interest running from service of the writ, now the claim form. As the Court of Appeal later summarised Birkett v Hayes, general damages already take account of inflation up to the trial, so the interest on them should be low.

Special account rates since 2009

The special account rate is the interest rate the Court Funds Office pays on money held for children and for people who lack capacity. The Lord Chancellor sets it with the concurrence of HM Treasury, and the recent changes were made in response to changes in the Bank of England base rate. Because it changes, interest on past losses is worked out period by period. The calculator uses every rate in this table.

Two dates in the official record differ. The audited 2022-23 accounts show 0.645% from 29 April to 1 September 2022, while the GOV.UK notice for 2 September 2022 says the rate rose "from 1.25% to 1.75%" without giving a start date for 1.25%; the calculator follows the accounts. The GOV.UK notice gives 21 April 2023 for the rise to 4.25%, while the 2023-24 accounts give 1 April 2023; the calculator uses 21 April. On £10,000 of past losses at half rate, the April difference is under £1.

How the calculation works

• General damages: amount x 2% x days from service to the end date / 365.
• Past losses: amount x half of the sum of each special account rate x its days / 365, from the accident to the end date.
• One-off items: amount x the full rate on the same basis, from the date of the loss.

Interest is simple, as section 35A requires, so interest is never added to interest. The number of days is the difference between the two dates. Judges and schedules of loss sometimes count one day more or less: in Adegboyega v Secretary of State for the Home Department [2025] EWHC 155 (KB) the court found that 2% on £25,000 from 10 May 2018 to 28 January 2025 was £3,361.64, which is 2,454 days, while the difference between those dates is 2,455 days, giving £3,363.01 here.

Past losses example: £10,000 of lost earnings spread over 2023 (accident on 1 January 2023, trial on 1 January 2024) meets six special account rates: 3% for 15 days, 3.5% for 28, 4% for 67, 4.25% for 53, 4.5% for 71 and 6% for 131. That adds up to 4.772%, half of which is 2.386%, so the interest is £238.60.

When a court does something different

These are conventions, not fixed rules, and the judge keeps a discretion. Examples in the reported cases include interest at the full special account rate from the midpoint of a loss that had ended, and in Jefford v Gee Lord Denning gave gross delay by one party as an example of a case where the court may depart from the ordinary rule. In Head v Culver Heating [2021] EWHC 1235 (QB) the claimant argued for the 8% judgment rate on a claim for lost years, and the judge refused, saying there was no good reason to depart from the conventional approach of half the special account rate.

Interim payments, offers under Part 36 of the Civil Procedure Rules and settlements before trial can all change the figures, so treat the calculator's answer as a starting point for a schedule of loss rather than a final figure. For how past and future losses are built up, see our guides to special damages, loss of earnings claims and interim payments.

Interest after judgment

Once judgment is given, a different rule applies. Section 17 of the Judgments Act 1838 says every judgment debt carries interest until it is paid, and the Judgment Debts (Rate of Interest) Order 1993 set that rate at 8% a year for judgments entered from 1 April 1993. In the county court, the County Courts (Interest on Judgment Debts) Order 1991 applies the same rate to judgments for £5,000 or more.

Is interest on damages taxed?

Section 751 of the Income Tax (Trading and Other Income) Act 2005 says no income tax arises on interest on damages for personal injury or death that is included in a sum awarded by a court, as long as it does not relate to the period between the making and payment of the award. The same applies to interest included in a settlement payment.

Scotland

Scotland has its own statute. Under section 1(1A) of the Interest on Damages (Scotland) Act 1958, as amended in 1971, a court awarding damages or solatium for personal injuries must include interest on them, or on such part as it considers appropriate, unless there are reasons special to the case. The rate is whatever the court specifies. Separately, Acts of Sederunt made in 1993 set the rate of interest on Court of Session and sheriff court decrees pronounced from 1 April 1993 at 8% a year. The calculator on this page follows the practice in England and Wales and does not apply the Scottish approach.

Sources and methodology

The calculator applies the rates in the table day by day, adds the periods together and rounds each result to the penny. Dates after 28 September 2026 use the latest rate, 3.75%, until the Lord Chancellor changes it. It does not model interim payments, Part 36 consequences, or interest at the judgment rate.

• Senior Courts Act 1981, section 35A, and County Courts Act 1984, section 69, on legislation.gov.uk.
• Judgments: Head v Culver Heating Co Ltd [2021] EWHC 1235 (QB); Adegboyega v Secretary of State for the Home Department [2024] EWHC 2365 (KB) and [2025] EWHC 155 (KB); Winterbotham v Zaker Sharak [2024] EWHC 2633 (KB); Nicholls v Mapfre [2023] EWHC 1031 (KB); Lynch v Princess Alexandra Hospital NHS Trust [2026] EWHC 657 (KB); Perry v Raleys Solicitors [2017] EWCA Civ 314, on Find Case Law (The National Archives).
• Court Funds Office rate announcements, Ministry of Justice, on GOV.UK, and the Funds in Court in England and Wales annual report and accounts 2022-23 to 2025-26.
• Judgments Act 1838, section 17; Judgment Debts (Rate of Interest) Order 1993; County Courts (Interest on Judgment Debts) Order 1991; Income Tax (Trading and Other Income) Act 2005, section 751; Interest on Damages (Scotland) Act 1958, section 1, on legislation.gov.uk.

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