In England, Royal Mint coins and Bank of England banknotes are legal tender, while in Scotland and Northern Ireland, only Royal Mint coins are legal tender. The good news for anyone who is able to lose their legal tender is that the vast majority of clearing banks will be happy to exchange Scottish notes for English notes for free. The question of “legal tender” is therefore a kind of diversionary manoeuvre. What is more important is whether banknotes are accepted south of the border and what recourse a person has if they are not. In 1727, the Royal Bank of Scotland began issuing twenty shilling notes (equivalent to £1). The first banknotes were monochrome and printed only on one side. The first twenty shilling notes were in Grade 8. December 1727 and were signed by a bank teller and provided with a unique number. The cashier also added by hand the equivalent in old Scottish pounds – a currency that had been abolished 20 years earlier in the Acts of Union of 1707, which united the kingdoms of England and Scotland into the Kingdom of Great Britain. Twenty shillings were equivalent to £12 Scots. The bank continued the custom of including the value in old Scottish pounds until 1792 to encourage acceptance of its banknotes. This series of banknotes was also the first British banknote with a royal portrait, as it featured a vignette of King George II, who ascended the British throne earlier this year. At that time, printing portraits was a difficult and expensive process, and including a portrait of the king was an effective way against forgery.

Banknotes were kept in bundles bound to the bank, similar to modern checkbooks. During distribution, the cashier cut the note with a wavy line; When the note was subsequently presented for payment, a bank employee verified that the note was not a counterfeit note by comparing the cutting edge of the note with the shape of the stub sheet and also checking whether the serial number on the note and the counterfoil matched. [7] The legal tender status of Scottish banknotes still applies today. Although it is not legal tender anywhere in the UK, not even in Scotland itself! For instructions on the legal status of coins, please follow the link for the Mint. Let`s discuss what legal tender is and whether or not Scottish banknotes are accepted in other parts of the UK. The counter-argument, of course, is that companies should take the time to teach their employees more about legal tender for customers. The question of “legal tender” is therefore a kind of diversionary manoeuvre. More importantly, whether the ranks south of the border are accepted and what recourse a person has when they are not. Our tickets are no longer legal tender if we withdraw them. We usually indicate several months in advance the date on which we withdraw a note.

The Bank of England`s website can also help clarify what is meant by “legal tender” and how little practical meaning the term has in everyday transactions. www.bankofengland.co.uk/knowledgebank/what-is-legal-tender The legal tender status of Scottish banknotes still exists today. Although it is not legal tender anywhere in the UK, not even in Scotland itself! There is no reason to distinguish between Scottish banknotes and other banknotes as an acceptable means of payment. It is high time we gave force of law to the well-known term “legal tender,” said Carmichael. “I hope this law will encourage businesses across the UK to recognise and accept Scottish currency.” Although Scottish banknotes can be accepted in England, they are not legal tender. First, Scottish banknotes are legal tender. However, legal tender is the only method of payment that a creditor must accept when offered in exchange for a debt. Although Scottish currency can be accepted; It is legal for creditors to reject Scottish banknotes if they are offered for debt. Legal tender has a narrow technical meaning that has no use in everyday life.

This means that if you offer to pay a debt to someone who is legal tender, they cannot sue you for non-repayment. Yes, you can, but it doesn`t need to be legally accepted. Three Scottish banks are authorised to issue banknotes: Bank of Scotland, Clydesdale Bank and Royal Bank of Scotland. There are also four central banks in Northern Ireland: Bank of Ireland; AIB Group (operating as First Trust Bank in Northern Ireland), Northern Bank and Ulster Bank. Scottish banknotes are sterling banknotes issued by three Scottish retail banks and circulating in Scotland. The issue of banknotes by retail banks in Scotland is governed by the Banking Act 2009, which repealed all previous banknote issuing laws, and the Scottish and Northern Ireland Banknotes Regulations 2009. [1] Currently, three retail banks are authorised to print banknotes for circulation in Scotland: Bank of Scotland, Royal Bank of Scotland and Clydesdale Bank. In England, Royal Mint coins and banknotes are classified as legal tender by the Bank of England, while in Scotland and Northern Ireland, only Royal Mint coins are legal tender.

Scottish banknotes are legal tender, so why are banknotes that should be accepted everywhere are not? This only shows to what extent legal tender is a technical formality. For your own safety, exchange any Scottish money you have for English banknotes to avoid inconvenience when travelling south of the border. And as a final surprising fact, it is also true that Scottish banknotes are not legal tender, not even in Scotland. Scottish banknotes are legal tender, i.e. they are approved by the British Parliament. However, Scottish banknotes are not legal tender, not even in Scotland. In fact, no banknote (including Bank of England banknotes!) is suitable for the term “legal tender” north of the border, and the Scottish economy seems to lack this legal protection. Hm Treasury is responsible for determining which banknotes are legal tender in the United Kingdom. Scottish banknotes are unusual, firstly because they are issued by retail banks rather than state central banks, and partly because they are technically legal tender anywhere in the UK – not even in Scotland, where no banknotes – including those issued by the Bank of England – are legally defined as legal tender. [2] [3] Formally, they are classified as promissory notes, and the law requires issuing banks to hold a sum of Bank of England notes or gold equal to the total value of the notes issued. It is a common misconception that Scottish banknotes are legal tender. The truth comes as a shock to many, but especially to English tourists, who hope to spend their Scottish banknotes on their return home, only to discover that the currency has been legally rejected.

In fact, Scottish banknotes are so rarely seen outside Scotland that a third of English residents think Scottish banknotes are counterfeit! But why are they rejected? And why do they still exist? It is also worth noting that if a transaction were to comply with the strict rules on legal tender, the amount due should be proposed, as no changes can be requested. If, for example, you get change in the form of Scottish banknotes in England, you don`t have to accept them either. By and large, it is up to companies to accept or not these notes, as they are not legal tender. As you can see, there are two sides to the issue. For one, Scottish money is technically and legally allowed to pay for goods and services throughout the UK. On the other hand, practical reality shows us that consumers still find it difficult to use their Scottish notes and coins, and that they can do nothing about it. The fact that banknotes are not defined as legal tender means that they are not withdrawn from circulation in the same way as Bank of England banknotes, which cease to be legal tender at some point. Instead, Scottish banks withdraw old notes from circulation when they are in the bank. All notes still in circulation will continue to be cashed by banks,[5] but retailers may refuse to accept older notes. [6] First, Scottish banknotes are legal tender. However, legal tender is the only method of payment that a creditor must accept when offered in exchange for a debt.

Although Scottish currency can be accepted; It is legal for creditors to reject Scottish banknotes if they are offered in exchange for debt. In fact, no banknote is classified as legal tender in Scotland, where only coins are counted as such. The technical term refers to debt repayment and has little relevance to day-to-day business transactions.