Legal tender?

[Pagey]

Can you help settle a disagreement...............

Are coins from Jersey and Gibralter legal tender in the UK?

situation is a mate has got a load of 1 pound coins etc and onother mate reckons he cant spend them

[speedy_thrills]

No.

[ninja-lewis]

Not legal tender. Nothing to stop someone accepting them though. I've had Gibraltar pound coins in the past. If no shops take them, just put them in the bank or use them in a machine.

[Famous Graham]

Did you know 21p in pennies isn't technically legal tender either?

http://www.royalmint.com/corporate/policies/legal_...

[Ozzie Osmond]

50p - for any amount not exceeding £10

25p (Crown) - for any amount not exceeding £10

10p - for any amount not exceeding £5

1p - for any amount not exceeding 20p

Anyone seen a 25p coin recently??

Or maybe one of those dodgy Irish nine bob notes!

http://www.independent.ie/national-news/ninebob-no...

[350GT]

That website said said:

In England and Wales the £5, £10, £20 and £50 notes are legal tender for payment of any amount. However, they are not legal tender in Scotland and Northern Ireland.

Uh? How does that work?

[Mr Dave]

BANK OF ENGLAND NOTES:

In England and Wales the £5, £10, £20 and £50 notes are legal tender for payment of any amount. However, they are not legal tender in Scotland and Northern Ireland.

Didnt know about this, always get a hard time with any Northern Irish notes Ive forgotten about and taken to England.

[pits]

so you cant buy 21p worth of 1 penny......3 penny sweets, with 1ps.....damn it, I have £1.78 saved up in 1p to buy a pint with, just to annoy mate who works behind the bar

[V8A*ndy]

350GT said:

That website said said:

In England and Wales the £5, £10, £20 and £50 notes are legal tender for payment of any amount. However, they are not legal tender in Scotland and Northern Ireland.

Uh? How does that work?

Why do some cash machines dispense BOE notes then in NI?

[Famous Graham]

V8A*ndy said:

350GT said:

That website said said:

In England and Wales the £5, £10, £20 and £50 notes are legal tender for payment of any amount. However, they are not legal tender in Scotland and Northern Ireland.

Uh? How does that work?

Why do some cash machines dispense BOE notes then in NI?

Same reason they do in Scotland. "Legal tender" isn't quite the same as being willing to accept them.

[sstein]

350GT said:

That website said said:

In England and Wales the £5, £10, £20 and £50 notes are legal tender for payment of any amount. However, they are not legal tender in Scotland and Northern Ireland.

Uh? How does that work?

What do you mean ?

"Legal tender" has nothing to do with what a shop accepts or doesn't accept. You could go into a shop and buy a sofa using orange peel if the shop owner is willing to accept it.

From a site posted earlier in the thread:

royalmint said:

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.

-

Stuart

Edited by sstein on Tuesday 10th February 00:17

Edited by sstein on Tuesday 10th February 00:18

Edited by sstein on Tuesday 10th February 00:18

[DrTre]

Famous Graham said:

V8A*ndy said:

350GT said:

That website said said:

In England and Wales the £5, £10, £20 and £50 notes are legal tender for payment of any amount. However, they are not legal tender in Scotland and Northern Ireland.

Uh? How does that work?

Why do some cash machines dispense BOE notes then in NI?

Same reason they do in Scotland. "Legal tender" isn't quite the same as being willing to accept them.

And given that Scottish notes are accepted in Scotland despite not being legal tender there then there's precious little people can realistically say about not accepting any other note

[350GT]

sstein said:

350GT said:

That website said said:

In England and Wales the £5, £10, £20 and £50 notes are legal tender for payment of any amount. However, they are not legal tender in Scotland and Northern Ireland.

Uh? How does that work?

What do you mean ?

"Legal tender" has nothing to do with what a shop accepts or doesn't accept. You could go into a shop and buy a sofa using orange peel if the shop owner is willing to accept it.

From a site posted earlier in the thread:

royalmint said:

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.

-

Stuart

That doesn't answer why it isn't legal tender. I'm curious as to why it is the case, and google isn't doing it for me!

[sstein]

This seems to go back to the Currency and Bank Notes Act 1954

Currency_and_Bank_Notes_Act1_954 said:

An Act to amend the law with respect to the issue and recall of bank notes by the Bank of England.

[10th February 1954]
1 Issue and recall of bank notes by Bank of England

(1)The Bank of England may issue bank notes of such denominations as the Treasury may approve and shall not issue any other bank notes, and any bank notes issued under this section may be put into circulation in Scotland and Northern Ireland as well as in England and Wales.

(2)All bank notes issued under this section shall be legal tender in England and Wales, and all such notes of denominations of less than five pounds shall be legal tender in Scotland and Northern Ireland.

(3)Bank notes shall be payable only at the head office of the Bank of England unless expressly made payable also at some other place.

(4)The holder of bank notes of any denominations shall be entitled, on a demand made by him during office hours at the head office of the Bank of England or, in the case of notes payable also at some place other than the head office, either at the head office or at that other place, to receive in exchange for the notes bank notes of such lower denominations, being bank notes which for the time being are legal tender in the United Kingdom or in England and Wales, as he may specify.

(5)The Bank of England shall have power, on giving not less than one month’s notice in the London, Edinburgh and Belfast Gazettes, to call in any bank notes on payment of the face value thereof, and any such notes with respect to which a notice has been given under this subsection shall on the expiration of the notice cease to be legal tender.

(6)All bank notes which, immediately before the commencement of this Act, were legal tender in the United Kingdom, or were legal tender in England and Wales subject to the provisions of section six of the M1Bank of England Act 1833 (under which five-pound notes were not legal tender by the Bank of England), shall be deemed to have been issued under this section and shall be legal tender accordingly in the United Kingdom or, as the case may be, in England and Wales.

So I guess once the £1 note was stopped being printed in 1988, that left no legal tender in Scotland and NI. Since it was the only note under £5 as stated in the act above under part (2) which constituted legal tender.

-

Stuart

Edited by sstein on Tuesday 10th February 00:48

[tomTVR]

http://www.youtube.com/watch?v=-zxNTbsU4ns#t=1m52s

[-JUT-]

What about £5 coins, are they still legal tender???

[tank slapper]

People often confuse legal tender with meaning a valid form of payment. What it refers to is the settling of debt. If you owe money, your creditor is obliged to accept payment from you if you give them legal tender - eg. if you pay your car servicing bill in cash with Bank of England notes, it is considered that the debt is settled.

The restrictions on amounts are to stop stupidity like paying a large bill in 1p coins. For convenience, other forms of settling a debt are used such as credit cards and cheques, but there is no obligation for them to be accepted.

A shop is not obliged to accept legal tender because you are not settling a debt, you are accepting an invitation to treat - a negotiated exchange of goods for money.

Something not being legal tender does not mean it is not a valid method of payment.

[glazbagun]

-JUT- said:

What about £5 coins, are they still legal tender???

I think so. In fact I think they may be the largest denomination of legal tender in Scotland.

[deviant]

The thread title promised so much

[Einion Yrth]

sstein said:

This seems to go back to the Currency and Bank Notes Act 1954

Currency_and_Bank_Notes_Act1_954 said:

An Act to amend the law with respect to the issue and recall of bank notes by the Bank of England.

[10th February 1954]
1 Issue and recall of bank notes by Bank of England

(1)The Bank of England may issue bank notes of such denominations as the Treasury may approve and shall not issue any other bank notes, and any bank notes issued under this section may be put into circulation in Scotland and Northern Ireland as well as in England and Wales.

(2)All bank notes issued under this section shall be legal tender in England and Wales, and all such notes of denominations of less than five pounds shall be legal tender in Scotland and Northern Ireland.

(3)Bank notes shall be payable only at the head office of the Bank of England unless expressly made payable also at some other place.

(4)The holder of bank notes of any denominations shall be entitled, on a demand made by him during office hours at the head office of the Bank of England or, in the case of notes payable also at some place other than the head office, either at the head office or at that other place, to receive in exchange for the notes bank notes of such lower denominations, being bank notes which for the time being are legal tender in the United Kingdom or in England and Wales, as he may specify.

(5)The Bank of England shall have power, on giving not less than one month’s notice in the London, Edinburgh and Belfast Gazettes, to call in any bank notes on payment of the face value thereof, and any such notes with respect to which a notice has been given under this subsection shall on the expiration of the notice cease to be legal tender.

(6)All bank notes which, immediately before the commencement of this Act, were legal tender in the United Kingdom, or were legal tender in England and Wales subject to the provisions of section six of the M1Bank of England Act 1833 (under which five-pound notes were not legal tender by the Bank of England), shall be deemed to have been issued under this section and shall be legal tender accordingly in the United Kingdom or, as the case may be, in England and Wales.

So I guess once the £1 note was stopped being printed in 1988, that left no legal tender in Scotland and NI. Since it was the only note under £5 as stated in the act above under part (2) which constituted legal tender.

-

Stuart

Edited by sstein on Tuesday 10th February 00:48

1954? You forget the 10/- note