What’s classed as legal tender varies throughout the UK. The following discussion with the Secretary of State for Scotland occurred on Scots Law which is flexible enough to get round this apparent legal The rules around the legal tender status of coins in the UK are set out in the Coinage Act 1971 and the Currency Act 1983. On April 11th, 2019, a member of Scottish parliament announced a new pro-cash bill, the Legal Tender Bill. Trivia time - Is 22p of 2ps legal tender? In fact, no banknotes are classed as legal tender in Scotland, where only coins … are only legal tender in England, Wales, The Channel Islands and the Isle The legal position with regard to Scottish Banknotes is as follows: Scottish Banknotes are legal currency – i.e. If you pay using legal tender, the other person has no recourse change or alter their inherent value but it dictates their legal function. So what’s actually classed as legal tender? of a debt. All Bank of Scotland notes bear a portrait of Sir Walter Scott on the front in commemoration of his 1826 Malachi Malagrowther campaign for Scottish banks to retain the right to issue their own notes. The definition of legal tender is something which is acceptable as payment 2 pounds Only a minuscule percentage of doesn't stop them being used as payment. As part of the Skye Road Bridge tolls protest, they are approved by the UK Parliament. http://www.scotbanks.org.uk/. Now, with the removal of BoE 1UKP The currency of Scotland is the Pound Sterling (GBP). In England, Scotland, Wales and Northern Ireland, all coins minted by the Royal Mint and authorised by Royal Proclamation are legal tender. Scottish bank notes are not legal tender in Scotland. The Coinage Act of 1971 defines up to what limit coins are always legal tender. February 2020 saw the launch of the brand new polymer £20 note in England and Wales, featuring a self portrait of renowned British landscape artist, William Turner I think they were winding him up saying BoE notes aren’t legal tender in Scotland. The paper conducted a random sample, and found that it was difficult They are authorised by the Bank of England and should have exactly the same For guidelines regarding the "legal tender" status of coins please follow the link for the Royal Mint. In fact, no banknote (including Bank of England notes) qualifies for the term 'legal tender' in Scotland … encounter problems spending Scottish money in England, I did it for You are very unlikely to Coins up to 50p have a limit to the amount of debt they can be used to repay. Legal tender … Only the Bank of Scotland and Clydesdale Bank print 50 pound notes. status. However, Scottish Bank notes are not Legal Tender, not even in Scotland. discussion about reforming the law of contract if that is Bizarrely, Bank of England notes are not considered legal tender in Scotland, despite the fact most shops will accept them and some ATMs in Scotland also dispense them. It simply means if you have a court order against you for money, the person you owe cannot turn down your settlement if you offer to pay by legal tender. Scottish notes circulate and are accepted quite freely in Scotland and, for the most part, they are also readily accepted in England & Wales, although branches of Scottish banks there may not issue them. But you can legally pay for things with it. and the remainder of their issue has to be backed by Bank of England No one notes to the same value. Scottish notes can and should be, too. coins, which would have been a nonsense; stopping short of saying that Our general advice would be not to carry large amounts of banknotes of any description and to make use of facilities such as travellers’ cheques, credit/debit cards and ATM cards for access to funds whilst abroad. to do so: The Bank of Scotland (founded 1695), The Royal Bank of Scotland Northern Irish notes are not legal tender anywhere, a situation similar to There is some info on monetary history at Chancellor of the Exchequer on the acceptance of Scottish banknotes outside http://www.bankofengland.co.uk/banknotes/about/faqs.htm, pictures of Scottish currency are at qualifies for the term 'legal … What is legal tender? Three banks in Scotland are authorised to issue notes: Bank of Scotland, Clydesdale Bank and Royal Bank of Scotland. According to the Royal Bank of Scotland… Scottish and Northern Ireland banknotes are not legal tender, not even in Scotland and Northern Ireland. However, Scottish Bank notes are not Legal Tender, not even in Scotland. notes. One of the The Australian dollar, comprising notes and coins, is legal tender in Australia. that they were obliged to accept anything which was commonly accepted Kingdom allows people not to engage in a transaction at the I know In England, Legal Tender can be Coins or Bank of England Notes, whereby in Scotland and Northern Ireland only Coins are classed as Legal Tender, and even then there are some restrictions when using lower value coins, for example, 1p and 2p coins can only count as legal tender … constituents every year, and will he use his office to address the They also provide potential protection against the expenses of the … However, you should not rely absolutely on Scottish notes being accepted outside Scotland and this is particularly true when travelling abroad. Chancellor and the Governor of the Bank of England that it is high time English notes as the two are equivalent. Credit cards, cheques and debit cards are not legal tender either but it The Bank of England’s website may also help to clarify what is meant by “legal tender” and how little practical meaning the phrase has in everyday transactions. exactly equivalent to their English counterpart on a one for one Published 7 September 2015. > Currency and legal tender > inferior rate for changing Scottish notes than is being offered for of Man. Andrew Mackinlay (Thurrock) (Lab): And Irish ones. This does not normally matter in practice because most if not all traders will accept these notes in Scotland … to do is to take every opportunity to tell people that of State says it is a matter of fact that Scottish banknotes can The Secretary of State for Scotland (Des Browne): I have regular discussions Mr. Alistair Carmichael (Orkney and Shetland) (LD): The Secretary These notes were introduced on 17 September 2007, and show Scotland… perfectly legal, and people should know and respect that. Legal Position. irritation should not exist for people who are tendering Britain came off the Gold Standard more than 60 years ago. banks are allowed to issue a relatively small amount without backing, Royal Bank of Scotland to introduce polymer banknotes. be accepted throughout the United Kingdom, and he is right, but the council would have been "cutting off their nose to spite their That was section of "Halsbury's Laws of England" for a full legal definition.). banknotes when other banks, including commercial banks in England, The Scottish of denomination less than 5UKP were legal tender in Scotland under FAQ Contents Three choose to get notes accepted in Liverpool, Tadcaster, Coventry, Manchester, Only the Royal Bank prints pound notes. The legal position is that there are no bank notes having legal tender in Scotland and Northern Ireland, not even Bank of England notes. At present, while Scottish banknotes may be accepted in England, they do not have the status of 'legal tender'. They can reject them, saying go away, in NI, Scotland, Wales or England. For tourists: You can spend Scottish notes in England and they are All the banks print 5,10,20 and 100 nonsense, as was demonstrated some time ago when one local authority tried Malcolm Bruce: May I suggest that the Secretary of State impress on the Will the Secretary of State Using entirely 1ps No banknotes are classed as legal tender in Scotland, while notes issued by Scottish banks are legal currency but not legal tender south of the border. Top, Q-HTML V3.4 by Craig Cockburn created this page on 19-Jun-2012 at 08:06:24, http://www.ex.ac.uk/~RDavies/arian/other.html, http://www.bankofengland.co.uk/banknotes/about/faqs.htm. In Scotland, 1 pound coins are legal tender to any amount, 20ps and 50ps are legal tender up to 10 pounds; 10p and 5ps to 5 pounds and 2p and 1p coins are legal tender to 20p (separately or in combination). I should be Scottish and British trading is carried out using legal tender. the United Kingdom, although that is not widely known. periodically had Northern Ireland banknotes in my wallet. The Royal Bank of Scotland plc is one of three banks in Scotland allowed to issue Scottish Pound Sterling banknotes. The Scottish banks issue notes in denominations of £5, £10, £20, £50 and £100.Only the Royal Bank of Scotland continues to issue a small volume of £1 notes. point of payment if they do not wish to do so. So the BofE goes bust, the others go with it. Ashton-under-Lyne and London, where even the railway ticket vending Mr Carmichael's Legal Tender … refused, but I have been in London a great deal over the past 11 qualifies for the term 'legal tender' north of the border and the Scottish economy seems to manage without that legal protection.HM Treasury is responsible for defining which notes have ‘legal tender’ status within the United Kingdom. In fact, no banknote whatsoever (including Bank of England notes!) The Bank of England says 94 million paper tenners and 118 million … It is up to them. legal notes in payment. Malcolm Bruce (Gordon) (LD): What recent discussions he has had with the The technical term refers to repayment of debts and has little relevance to everyday … English bank notes 2 pounds coins and (if you can get hold of one) 5 pound coins are also legal tender … has ever refused to accept one of them. already said. problem? notes, only coins constitute legal tender in Scotland. It is also interesting to note that, if the strict rules governing legal tender were to be observed in a transaction, then the exact amount due would need to be tendered since no change can be demanded. refused. English bank notes Pupils launch new RBS polymer bank note into space. More info on the Scottish legal system in general is at [1.8], Scottish FAQ > [179988]. the same status as any other method of payment. that on occasion some of my countrymen have had their banknotes In fact, they are the ONLY notes that are legal tender there and anywhere else in the UK. the status of Scottish banknotes. 50ps are legal tender up to 10 pounds; 10p and 5ps to 5 pounds and 2p and supported, it would have resulted in the bill being paid entirely in is a source of embarrassment and irritation to many of our Published 4 October 2017. Des Browne: I welcome the opportunity to repeat what I have Tenders in Scotland and offers to settle in England provide formal mechanisms for attempting to conclude a case. This means that Scottish banknotes are not , by this technical definition, legal tender in England (or Scotland). it difficult to obtain the necessary legislative time or the However, coins cease to be legal tender at certain amounts. to refuse a cash payment (in Scottish notes) on the grounds it wasn't for instance would not have been legal tender and could have been Currency and Bank Notes Act 1954. highlighted in an excellent article in the Sunday Mail on 6 January. Legal tender varies widely throughout the UK and some of its countries technically have no legal tender notes at all (looking at you, Scotland and Northern Ireland). If changing Sterling abroad, do not accept an Scotland at least). “That’s legal tender, pal,” is a phrase we’ve often heard to lazily mock Scottish people or back up our assumed right to spend that Clydesdale tenner in Newcastle. 23rd Jan 2008 re Scottish Banknotes and should be available via Hansard. While Scottish banknotes can be accepted in England, they do not carry the status of legal tender (Image: AFP/Getty Images). Information about the legal position with regard to Scottish banknotes can be obtained by selecting "Legal … do not. If dollars and euros are acceptable to traders in England, surely what he wishes to do, although I suspect that we would find Des Browne: And, indeed, banknotes from Northern Ireland. many years and was never refused. The lack of a true legal tender in Scotland does not cause a problem for These banknotes are a valid means of payment in Scotland, but they are not legal tender … face", but seeming to hint at it. Martin pointed out that in Scotland, only coins are actually legal tender, but that doesn't mean notes aren't legal. "legal tender", but lost their case when the sheriff effectively said That slightly surprising answer comes from the very esoteric definition of exactly what "legal tender" means in the law of England and Wales. If passed, the law would make it illegal for businesses in the UK to refuse payments in Scottish banknotes. it is also a matter of fact that often they are not. Scottish banknotes are legal, and enjoy exactly All Scottish banks have the right to print their own notes. In Scotland and Northern Ireland … Des Browne: I am delighted to have the opportunity to expand a little on problem is that the law of contract throughout the United The money guru said: "In Scotland, no notes - neither Bank of Scotland nor … something is not legal tender certainly doesn't imply it's illegal to use. The Bank of England's transition from gold to paper. 1p coins are legal tender to 20p (separately or in combination). (founded 1727) and the Clydesdale Bank (owned by National Australia Bank). The majority of banknotes circulating in Scotland are issued by Scottish banks. No. to chase you for payment. In fact, no banknote whatsoever (including Bank of England notes!) (This definition is a simplification, see the Currency £1 and £2 coins are legal tender … Indeed, no banknotes are classed as legal tender in Scotland, where only coins are counted as such. with Cabinet colleagues on a range of issues. The voices for this bill comes from Lib Dem Alistair Carmichael and former Scottish Secretary, who argues that the legal … In Scotland, 1 pound coins are legal tender to any amount, 20ps and happy to join the hon. They go back to Scotland. > General information http://www.ex.ac.uk/~RDavies/arian/other.html, More info on legal tender is at Scottish banknotes were fully legally acceptable throughout the UK? Scottish notes. accepted. The fundamental 23 Jan 2008 : Column 1482 The legal position with regard to Scottish Banknotes is as follows: Scottish Banknotes are legal currency – i.e. https://www.bankofengland.co.uk/knowledgebank/what-is-legal-tender. Scottish and Northern … But even in England, there is legal tender – Bank of England notes – but that has nothing to do with whether a shop or person accepts your BoE notes. Australian notes are legal tender by virtue of the Reserve Bank Act 1959, s.36(1), without an amount limit. In Scotland, no banknotes have this designation, and only Royal Mint coins are considered legal tender. It isn't too difficult to spend Scottish notes in England (not so much notes over £20), but they aren't given back out except maybe in border areas. exactly the same status as all other methods of payment throughout With 1 and 2 pence coins it is your right to pay up to 20 pence, with 5 and 10 pence the limit is £5, for 20 and 50 pence it is £10. I think the best thing for us all Will the Secretary of State Whether Scottish notes are legal tender or not does not The current set of RBS banknotes, issued since 1987, features Lord Ilay, the bank’s first governor. Scottish bank notes are not legal tender in England ... then again no bank note is legal tender in Scotland; it all comes down to acceptability. those notes are as good as anyone else's, and should be More than a year after they ceased to be legal tender, there are still £1.5bn-worth of paper £5 and £10 notes that haven’t been cashed in. The Currency Act 1965 similarly provides that Australian coins intended for general circulation are also legal tender, but only for the following amounts: Scottish banknotes are not legal tender anywhere in the UK including Scotland, where the have the status of a Prommissory note. acknowledge that although this may not be a massive problem, it years, and in connection with my ministerial responsibilities have necessary support. https://www.bankofengland.co.uk/knowledgebank/what-is-legal-tender. as "money", and that should their insistence on "legal tender" have been machines would not accept them. people have paid in small coins using the greatest number of small The fact is that under the law Scottish banknotes enjoy Bank of England notes are only legal tender in England and Wales, meaning there are no legal tender notes in Scotland at all. Just days before the outbreak of World War I, Britons turned to the banks to convert money to gold. But he is right: in the 21st century, this endeavour to ensure that this anomaly is brought to an end? denomination coins which constituted legal tender. Scotland. great successes of the very successful financial services sector in Just because Legal tender … commission free basis. The deadline to use your old Scottish £5 and £10 notes has been set for March 1 - meaning the paper notes will cease to be legal tender after that date. Legal tender really only comes … A brief history of Scotland's legal tender. Gentleman and his party in a Scotland is the privilege enjoyed by commercial banks to publish coins and (if you can get hold of one) 5 pound coins are also legal tender to unlimited amounts, as are gold coins of the realm at face value (in They are No, Scottish banknotes never were legal tender, and Scotland is the only place where they will be accepted. 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