Legal Tender and Regional Issues
Legal tender in the UK means (according to the Royal Mint) "that a debtor cannot successfully be sued for non-payment if he pays into court in legal tender." It does not mean that any ordinary transaction has to take place in legal tender or only within the amount denominated by the legislation. Both parties are free to agree to accept any form of payment whether legal tender or otherwise according to their wishes. In order to comply with the very strict rules governing an actual legal tender it is necessary, for example, actually to offer the exact amount due because no change can be demanded.
Throughout the UK, £1 and £2 coins are legal tender for any amount, with the other coins being legal tender only for limited amounts. In England and Wales, Bank of England notes are also legal tender for any amount. In Scotland and Northern Ireland, no banknotes are currently legal tender, although Bank of England 10/- and £1 notes were legal tender, as were Scottish banknotes, during World War II (Currency (Defence) Act 1939; this status was withdrawn on 1 January 1946). However, the banks made deposits with the Bank of England to cover the bulk of their note issues. In the Channel Islands and Isle of Man, the local variations on the banknotes are legal tender in their respective jurisdictions.
Scottish, Northern Irish, Channel Islands and Manx notes can be used anywhere in the UK as a means of payment. Guernsey, Jersey, the Isle of Man are in currency union with the United Kingdom and these currencies are not a separate currency from the British pound but are just a local issue of banknotes and coins denominated in pound sterling.
It is legal for shopkeepers to choose to reject any payment, even if it would be legal tender in that jurisdiction, but not in their interest because no debt exists when the offer of payment is made at the same time as the offer of goods or services. When settling a restaurant bill after consuming the meal, or settling another debt, the laws of legal tender do apply and the payment can not be rejected. But usually any reasonable method of settling the debt (such as by credit card) will be accepted.
Commemorative £5 and 25p (crown) coins, rarely seen in circulation, are legal tender, as are the bullion coins issued by the Mint.
| Coin | Maximum usable as legal tender |
|---|---|
| £5 (post-1990 crown) | unlimited |
| £2 | unlimited |
| £1 | unlimited |
| 50p | £10 |
| 25p (pre-1990 crown) | £10 |
| 20p | £10 |
| 10p | £5 |
| 5p | £5 |
| 2p | 20p |
| 1p | 20p |
Further, any coin or bank note ceases to be legal tender if it is 100× the amount of the debt (for example, offering a £20 note to settle a 20p debt).
Read more about this topic: Pound Sterling
Famous quotes containing the words legal, tender and/or issues:
“It has come to this, that the friends of liberty, the friends of the slave, have shuddered when they have understood that his fate was left to the legal tribunals of the country to be decided. Free men have no faith that justice will be awarded in such a case.”
—Henry David Thoreau (1817–1862)
“And that is ... how they are. So terribly physically all over one another. They pour themselves one over the other like so much melted butter over parsnips. They catch each other under the chin, with a tender caress of the hand, and they smile with sunny melting tenderness into each other’s face.”
—D.H. (David Herbert)
“How to attain sufficient clarity of thought to meet the terrifying issues now facing us, before it is too late, is ... important. Of one thing I feel reasonably sure: we can’t stop to discuss whether the table has or hasn’t legs when the house is burning down over our heads. Nor do the classics per se seem to furnish the kind of education which fits people to cope with a fast-changing civilization.”
—Mary Barnett Gilson (1877–?)