Reference · Jurisdiction
Can a UK shop refuse cash, and what does legal tender mean?
The Bank of England says a UK shop can choose which payment methods to accept. Legal tender concerns an offer to pay a debt in full. Which notes or coins count depends on the jurisdiction and denomination.
Sources checked
- 01A new retail purchase
The shop can set the payment methods it accepts. Source 1
- 02An existing debt
Check the agreed payment terms and whether the offer covers the full debt. Source 1
- 03Cash tender
Check which currency is legal tender in that UK jurisdiction and any coin limit. Source 2
The rules for a new sale and an existing debt answer different questions.
The decision at a shop counter comes first
A business can decide which forms of payment to accept for a new purchase, according to the Bank of England. For example, a shop can refuse a large note or use card-only payment even where notes count as legal tender. Source 1
The debt rule has a narrower purpose
The Bank describes legal tender in terms of a full offer to repay a debt where no contract specifies a different payment method. A creditor’s agreement to take another method is separate from whether that method qualifies as legal tender. Source 1
The status of notes varies around the UK
Bank of England notes count as legal tender in England and Wales. The Bank says only Royal Mint coins count as legal tender in Scotland and Northern Ireland. People may still agree to use banknotes there. Source 1 Source 2
A coin’s denomination sets the limit
The Royal Mint lists GBP 1 and GBP 2 coins as legal tender for any amount. It lists caps of GBP 10 for 20p and 50p coins, GBP 5 for 5p and 10p coins, and 20p for 1p and 2p coins. These caps concern legal tender. Source 2 Source 1