Understanding UK Coinage Laws: Legal Tender Explained

Learn about the legal tender limits for various coins in the UK and what this means for merchants and consumers.

140 views

UK coinage laws state that certain coins are only legal tender up to specific amounts. For example, £1 and £2 coins are legal tender for any amount. In contrast, 20p, 10p, 5p, and 2p coins are legal tender up to £10, £5, £5, and 20p respectively. Merchants aren't obliged to accept more than the specified quantities of these coins.**

FAQs & Answers

  1. What coins are considered legal tender in the UK? In the UK, £1 and £2 coins are legal tender for any amount, while lower denominations have specific limits.
  2. Are merchants required to accept all coins? No, merchants are not obliged to accept coins beyond their legal tender limits, such as accepting 5p coins over £5.
  3. What does legal tender mean? Legal tender refers to the coins or banknotes that must be accepted if offered in payment of a debt.