Ponder on this heard on a radio station today....

Money expert to Interviewer...are Scottish bank notes legal tender in England?

Interviewer...yes...

Money expert answer...no

 

Money expert to interviewer...are Scottish bank notes legal tender in Scotland?

Interviewer...yes...

Money expert answer...no 

 

Think on that one 

Original Post

The expert is correct.

This is an old chestnut, and is based on the GBP's confusion between "legal currency" and "legal tender". "Legal tender" is a very specific legal term that only refers to methods legally guaranteed for the payment of debt - it doesn't affect general transactions. No UK&NI banknotes are legal tender other than Bank of England notes, but they can of course all still be used in shops.

 

As an aside; all UK coins below £1 are restricted as legal tender in that they can only be used for debts below certain amounts (so, for example, you can't pay a £200 bill with pennies...)

 

[I'm on my mobile ATM so can't post links, but you can read all about this on Wiki.]

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