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