In truth, it does not mean they can be accepted by banks, shops or businesses for cash transactions. It says: 'The coins are issued for commemorative purposes only and are not intended to be used as cash. ', 'The Royal Mint can't have it both ways and to continue to use such a description would be a deliberate attempt to deceive the average consumer.'. The views expressed in the contents above are those of our users and do not necessarily reflect the views of MailOnline. The Sovereign , known as the “chief coin of the world”, is struck in 22 carat gold and both Britannia and Lunar Series coin ranges are struck in either 999.9 fine gold (24 carat), 999 fine silver or 999.5 fine platinum. However, while it is legal tender, it has not been designed to be used as a circulating coin. MORE than £120million worth of old pound coins are still missing three years after they stopped being legal tender. A Royal Mint spokesman has since said: 'Under our standard terms and conditions, customers are entitled to a full refund within 14 days, if they are not entirely happy with their purchase. 'As such, UK shops and banks are not obliged to accept them in return for goods and services.'. 'Again, most people would not wish to trade in a commemorative coin. According to the Royal Mint, 1p and 2p coins are only legal tender for transactions up to the value of 20p, while 5p and 10p coins need only be accepted for transactions up to £5. On the Royal Mint homepage, commemorative coins are proudly described as being 'face value.'. While the coins will remain legal tender, the Royal Canadian Mint will no longer distribute pennies as of February 4, 2013. 50p - for any amount not exceeding £10. ... 'Legal tender' simply means that an item can be used to settle debts to a court. Previously, a spokeswoman from coinage experts the London Coin Company, said: 'We think the Buckingham Palace coin will just about hold its value - the buzz has gone over £100 silver coins after the previous version which also had 2oz of silver with a £100 denomination. 25K 961 6. 'There is an arrangement with some Post Offices to accept £5 crowns at their discretion in exchange for goods and services, but this arrangement does not extend to any other commemorative coins, including those in the face value range.'. James would buy the coins in bulk on his credit card to garner points, which in turn earned him miles to put towards flights. If you click on them we may earn a small commission. The Royal Mint Limited whose registered office is at Llantrisant, Pontyclun, CF72 8YT, United Kingdom (registered in England and Wales No. Mist001. Some links in this article may be affiliate links. As such, investments in Bullion involve a degree of risk, which may make them unsuitable for certain persons. peculiartomrfish. B ritish people have been urged to check their sofas and piggy banks as 145m old pound coins still have not been returned to the Royal Mint.. Yet, the belated move to clarify these strict definitions means thousands of buyers who already snapped up coins may not have seen what the terms face value and legal tender actually mean. £2 - for any amount. 'They are intended for collectors and gift buyers, and demonstrate the detailed hand-finished processes and expert skills of The Royal Mint's craftspeople.'. £50 - for any amount. I feel like I have been conned. Another, Tony from Dartford, said: 'I have just bought two £50 coins for my grandchildren celebrating the long reign of Queen Elizabeth. The Gospel According To Tony Day. Please note that certain products, storage and delivery services will be dependent on the type of account you hold. Fake coin - these are from The Royal Mint which is legal tender. 'The reason I bought them was that I thought they were legal tender and that the price would remain at £50 and as they are limited should go up in value to collectors. 'Products must be returned to us in as-new condition in their full packaging. Public chargers per electric car at LOWEST level in two years highlighting the uphill task government faces to boost infrastructure, Building society bosses plead with government to 'taper' stamp duty holiday for those with approved mortgages, Barclays hit with £26m fine over poor treatment of indebted borrowers for four years while some HSBC customers are receiving £100 payouts, BUSINESS CLOSE: Unemployment rate rises to 4.9%; LoveHolidays agrees to pay £18m in refunds; LV to sell part of business to Bain, H&M and Zara count the cost of Covid on clothing sales as industry body warns that the jobs outlook for Britain's retail sector remains 'bleak', JD Sports increases its US footprint by snapping up Shoe Palace weeks after pulling out of talks over a rescue deal for Debenhams, Blackburn's Issa brothers - who bought Asda for £6.8bn - sign a £440m deal to buy 285 petrol stations in Germany, 1.3m LV= members in line for a cash payout as the insurer is sold to US private equity firm for £530m, Shares in Purplebricks shoot up after the firm revealed it has cashed-in heavily on the property market boom, The top dividend payers of 2020: Income from FTSE 100 firms was slashed 20%, but these 16 blue-chips are paying out, House prices forecast to climb another 4% in 2021 after a 7% rise this year despite Covid, Brexit and the stamp duty holiday ending, Savings rates hit a record low with easy-access deals paying just a third of the interest that they did last year, Are you a scam-savvy driver? Since then, it has been struck both as a bullion coin and beginning in 1979 for collectors. Another commenter on our story suggested that high value coins must be accepted by the Post Office by law as legal tender for purchases. But how can it be if it cannot be exchanged over the counter of a bank? As part of our investigations, This is Money obtained a letter sent out to bank branches by Royal Mint, dated 5 January. The coinage and the commercialization of commemorative coins and medals has been awarded to the Royal Dutch Mint. For example, the Buckingham Palace £100 coin is made from 62.86g of 999 silver – or just over two ounces. Like a jet for the road: Hennessey reveals the 311mph Top Gun-style supercar that it claims will be the most powerful on the planet, Is the collapse of the high street impacting YOUR business? The Royal Mint would like to keep you up to date with information about our competitions, products, services, offers and news that may interest you. The Royal Mint has launched a £50 coin, but the value of the metal is much lower. It adds: 'In practice this means that although the face-value UK coins in denominations of £5, £20, £50 and £100 are approved as legal tender, they have been designed as limited edition collectables or gifts and will not be entering general circulation. Benefits of The Exclusive Legal Tender Bar: Guaranteed for weight and purity (.9999 fine gold) by the Royal Canadian Mint; Ideal for barter in a crisis situation; May be included in a precious metals IRA; Fractional size offers a lower price point and greater flexibility than one ounce coins and bars when it comes to liquidation and distribution It means that a debtor cannot successfully be sued for non-payment if he pays into court in legal tender. ', GamblingJoe, from Salcombe, adds: 'The Royal Mint were/are clearly misleading people with the term "legal tender".'. Banks warn over negative interest rates: Big lenders urge caution as BoE weighs up whether to go below zero for the first time in history, 'UK equities could be the perfect way to play a global reopening at a fair price': Tom Becket talks opportunities for 2021 on the INVESTING SHOW. The Royal Mint says: 'The "face value" description used for this coin range refers to the fact that the coins are available to buy for their denomination figure – the figure shown on the coin "face". 'Members should not accept the coins at bank branches and customers who wish to return the coins should be referred to the Royal Mint. The international ranges of gold bullion coins which are sold by The Royal Mint including The Krugerrand and Maple are also VAT free. Here's how you could boost sales and visibility during the pandemic and beyond, My mother is being moved to end of life care which is totally funded by the NHS: Is she still entitled to claim her state pension? Legal Tender Gold Bar Sunday, 27 September 2020. According to the Royal Proclamation under the Coinage Act of 1971, the £20 coin, like the £5 coin, and all other United Kingdom coins of the realm, IS legal tender (including commemorative 10p, 50p, £1 or £2 coins in cupro-nickel, silver or bronze). 'Guidelines have for some time been available, however, we have taken steps to include the definition on our face value coins page to ensure that the definition is in a place that customers can view it more easily, should they have a query.'. However, like many buyers, James didn't realise what the strict definition of 'legal tender' entails and was hit by the Royal Mint's crackdown, which saw a letter sent to banks telling them not to accept the coins. GamblingJoe, from Salcombe, adds: 'The Royal Mint were/are clearly misleading people with the term "legal tender".' … In legal terms, it means “the money approved in a country for paying debts.” 'The first issue, which was the first time they had released a £100 silver coin got collectors interested but it seems the Royal Mint, like others, is launching as many products as possible. Which Royal Mint Bullion products are free from Capital Gains Tax (CGT)? British marque completes reborn 1920s racer, Lord Blunkett 'never envisaged' disabled Child Trust Fund issues, Electric cars could reap benefits from new green number plates, 'UK shares can do well when the world reopens': Tom Becket, Experts urge Government not to go ahead with hands-free driving. All information contained on or available through this website is for general information purposes only and does not constitute investment advice. The 999 aspect is the percentage of the fine metal in the coin, so 99.9 per cent. Calls for legalisation of e-scooters grow as Halfords reports a huge rise in sales of the controversial products during the pandemic. £20 - for any amount. Originally, "penny" referred to a two-cent coin. Bullion markets can be volatile and the value of Bullion may fluctuate dependent on the market value of precious metals. Please check the box below, by doing so you are acknowledging that you are above the age of 16 and consent to being contacted. Collector coins may be used to purchase goods and services to the value stated on the coin (or ‘face value’), or can be exchanged at a bank for regular circulating currency to the same face value. We do not write articles to promote products. All Australian legal tender coins have been designed and struck in high detail and quality by the Royal Australian Mint. The Royal Mint told This is Money that it will only accept returns of the coins within 14 days and those who want to sell the coins in the future will have to 'consult with a reputable coin trading agent. Steve Webb replies. Since its introduction in 1988, the iconic Royal Canadian Mint Silver Maple Leaf (SML) has been a highly sought-after bullion investment coin. The Royal Mint is facing accusations that it is duping the public into buying commemorative coins that have no actual monetary value. US Coins Dec 7, 2020, 10 PM. The coins are legal tender and can be purchased from the Mint's online store. The Royal Mint cannot accept returns of such coins outside of the 14 days return policy. 'Products sold from the mintages of most of its products over the last two to three years are way down.'. In England and Wales, it’s Royal Mint coins and Bank of England notes. Legal tender … In order to comply with the very strict rules governing an actual legal tender transaction it is necessary, for example, to offer the exact amount due because no change can be demanded. Many will idly see this as a guarantee that a £100 coin is indeed worth £100. This is Money is part of the Daily Mail, Mail on Sunday & Metro media group, Get a discount code to save on your internet security, Listen to podcasts and books for less with these offers, Get the ultimate broadband and entertainment bundle, Get great deals on existing and new plans, Have a clean house and save money with these offers, The most vulnerable time of the year: Britons bombarded as fraudsters impersonate DPD and Royal Mail to grab personal and card details. Please take 5 minutes to complete our customer survey. Before making any investment decision, you may wish to seek advice from your financial, legal, tax and accounting advisers. Silver coins, regardless of the country of issue, are subject to VAT at the current rate of 20%. Mist001. The primary purpose of the legal tender value on British coinage is to settle debts in court. There are also some restrictions when using small coins. But it turns out this is not true either. The Royal Mint adds: 'Legal tender is a concept that can be misunderstood. Legal tender allows UK coins to be accepted for payment of debts in court, but only circulating legal tender coins are designed to be spent and traded at businesses and banks.” The Royal Mint also represents the Belgian State on an international level. 674 1,057 7. The Royal Mint is suffering a backlash after it sent a memo to banks telling them not to accept high-value 'legal tender' commemorative coins over the counter. Our energy supplier went under days after I switched for a better deal - but I was £100 in credit: Will I automatically get money back? Some of his pile of coins is pictured here, Its terms and conditions section on the website describes legal tender as having 'a very narrow and technical meaning in the settlement of debts.'. £1 - for any amount. © The Royal Mint Limited. According to UK law, all coins made by The Royal Mint are classed as legal tender, whether they are commemorative coins or those in circulation. We do not allow any commercial relationship to affect our editorial independence. Although the sovereign is no longer in circulation, it is still legal tender in the United Kingdom. The coin was still used in the Middle East and demand rose in the 1950s, to which the Royal Mint eventually responded by striking new sovereigns in 1957. Investments in Bullion should only be made as part of a diversified investment portfolio and investment advice should be sought before any investment is made. In other words, they're taking your money and sending you a round bit of metal with a pretty picture that you cannot use - despite claiming it's legal tender on their website (which I witnessed having looked just before xmas and thinking of buying one). ', Our investigation into James' story prompted a furious backlash from readers who felt duped by the coins. What the coin is actually worth, in terms of silver, may also come to a surprise to some who have bought coins. I wonder if they'll do tu'ppence? Published: 10:51 GMT, 14 January 2016 | Updated: 15:41 GMT, 14 January 2016. If for any reason customers should wish to sell their coin at a later date, we recommend that they consult with a reputable coin trading agent. Both parties to a transaction are free to agree to accept any form of payment whether legal tender or otherwise according to their wishes. When the two-cent coin was discontinued, penny took over as the new one-cent coin's name. Special coins: The Royal Mint has been marketing the coins as being 'face value' and 'legal tender' - many will not know what those terms mean. This means that many, who thought they could exchange the coins in the future for 'face-value' at banks, will have no option but to attempt to sell them to collectors. Coins are legal tender throughout the United Kingdom for the following amount: £100 - for any amount. Download the 2020 $100 Gold Lunar Investment - Year of the Rat Reverse Download the 2020 $100 Gold Lunar Investment - Year of the Rat Obverse 06964873). It means it is made with under £10 worth of silver. 'No one knows the future and one day they might need £50 in an emergency and now they have to go to do dealers. ', Royal Mint memo: The coin-maker has told banks not accept coins over the counter. Would a 'wealth tax' work in Britain and could it help pay off the Covid-19 debt. It could mean the value of some of the coins, which can cost up to £100, is at the mercy of collectors and rarity of the product. This new £60,000 BMW iX3 electric SUV has a soundtrack written by composer Hans Zimmer: Will it hit the right note with drivers? It does not mean that any ordinary transaction has to take place in legal tender or only within the amount denominated by the legislation. The Royal Mint said: 'As per our previous response, businesses, banks and Post Offices are not obliged to accept the coins as they are not intended for commercial transactions – they are collectibles. Cunning ruse: James would bulk buy commemorative coins on his credit card to gain airline points and then cash them in at the bank. Buyers have flocked to the special edition coins in recent years, with many believing they would always be worth their face value, but This is Money readers have hit out as banks have now been told to stop cashing them in. What’s classed as legal tender varies throughout the UK. In Economic Action Plan 2012, the Government of Canada announced that it will modernize Canada's currency set by eliminating the penny from Canada's coinage system. There are a fair few for sale on e-bay for about £100 Banks will not touch them. At the same time, it appears the Royal Mint has been busy updating its website to make it clearer banks and shops are not 'obliged' to take the coins. Halifax will pay off the mortgage of 10 customers next month in a prize draw: What do you need to do to take part? Money metals exchange llc blogger in investing in gold krugerrand coins gold bullion legal tender bar 1 10 oz gold bullion legal tender bar 1 10 oz 10 oz royal canadian mint legal tender pin by linwood coins coin collecting. By signing up to our newsletter The Royal Mint will keep you up to date with information about our competitions, products, services, offers and news that may interest you. * Bullion product prices displayed include the precious metal price and any applicable premium. Should you have a more detailed question relating to your account or a recent order please get in touch with our customer services team. The technicality is that a debtor can’t be sued for not paying IF they pay into court with legal tender, of which precious metal bullion and proof coins from the Royal Mint count as a legitimate contribution. £5 (Crown) - for any amount. All bullion coins struck by The Royal Mint are official United Kingdom legal tender, and similar to all UK coins they carry the coinage portrait of Her Majesty The Queen. One reader, Dekka from Birmingham, commented on the story: 'These coins should no longer be marketed as "face value" or "legal tender". 'They are intended as collectable items, and are not promoted as investment items or intended for use in daily commercial transactions. Post 4:28 PM - Nov 17 #4 2020-11-17T16:28. She added: “As set out by law, all UK coins made by The Royal Mint are classed as legal tender, whether commemorative or circulating. About 122m round £1 coins have not been returned to the Royal Mint, nearly three years after they stopped being legal tender. I opened a BA Amex to earn a free flight voucher: I've now cancelled the £195 credit card - have I lost the reward too? The term ‘legal tender’ allows UK coins to be accepted for payment of debts in court. Bank notes issued by the Bank of Canada, together with coins issued by the Royal Canadian Mint, are what is known as “legal tender.” That’s a technical term meaning the Government of Canada has deemed them to be the official money we use in our country. Please note that whilst these coins are legal tender, they are not designed for general circulation, so banks and shops are unlikely to accept the coins. It is the job of The Royal Mint to literally make money - and yet in 2017, ... until the old design lost its legal tender status in October of that year. This means that in common with coins in general circulation these coins have legal tender status. Historic financial performance of Bullion is not indicative of and does not guarantee future financial performance. For example, 1p and 2p coins only count as legal tender for any amount up to 20p. The SML is minted with one troy ounce ... each coin being legal tender weighing 1 g. NEW for 2016, each Gold Maple Leaf coin features precisely machined radial lines. She added: “As set out by law, all UK coins made by The Royal Mint are classed as legal tender, whether commemorative or circulating. In Scotland and Northern Ireland it’s only Royal Mint coins and not banknotes. The Royal Mint is promoting the coin as the first UK coin in “space,” stating in a press release ... Canada notes in obsolete denominations losing legal tender status. DVLA warns of a 603% surge in fraudulent emails and texts - here's how to spot dodgy alerts. So two ounces would be $28 – or little more than £19. Your coins ARE NOT legal tender and the royal mint has instructed banks not to accept them. 25K 961 6. We are no longer accepting comments on this article. 'As such, investments in Bullion involve a degree of risk, which may make them unsuitable certain... Bullion coin and beginning in 1979 for collectors any promotions or discounts are applied to the Royal Mint facing... Agree to accept any form of payment whether legal tender, the Royal Dutch Mint 5... Are free from Capital Gains tax ( CGT ) of its products the... For purchases `` have you got change of a bank, Royal Mint coins and bank of England notes coins! For example, 1p and 2p coins only count as legal tender for.... If you click on them we may earn a small commission some restrictions when using small coins dvla warns a! Commercial transactions to three years after they stopped being legal tender aspect is the percentage of the controversial products the! On the type of account you hold price itself Mint 's online store on British coinage is settle... Made from 62.86g of 999 silver – or just over two ounces for purchases not on the Royal Canadian will! With coins in general circulation these coins have legal tender value on coinage. Years are way down. ' per cent surge in fraudulent emails and texts - here 's how to dodgy! £100 coin is made from 62.86g of 999 silver – or just over two ounces be. A small commission pays into court in legal tender how can it be if it can not be.: 25p ( Crown ) - for any amount not exceeding £10 touch them as tender. Since then, it has not been designed to be used as a guarantee a! And one day they might need £50 in an emergency and now they have to go to do dealers Royal. Have not been designed to be used to settle debts to a court a surprise to some who bought... 'The apparent worth or implication of something. ' data, one ounce to! No longer distribute pennies as of February 4, 2013 guarantee that a £100 coin is from! Of 20 % currently trading for $ 14: £100 - for any amount up to 20p a coin... Mint homepage, commemorative coins are legal tender or otherwise according to their wishes amount exceeding! Are free from Capital Gains tax ( CGT ) decision, you may to! Full packaging 62.86g of 999 silver – or just over one ounce, 10 PM are obliged... Services will be dependent on the Royal Canadian Mint will no longer distribute pennies as of February 4 2013. Stopped being royal mint legal tender tender status 's online store following amount: £100 for! Allows UK coins to be used as a guarantee that a debtor can successfully! Took over as the new one-cent coin 's name using small coins PM - Nov 17 # 4 2020-11-17T16:28 from! Were/Are clearly misleading people with the term ‘ legal tender or only within the amount denominated by the are. The contents above royal mint legal tender those of our investigations, this is not true either but it out. £100 - for any amount up to 20p certain persons there are a fair few sale... Any promotions or discounts are applied to the Royal Mint including the Krugerrand and Maple are also VAT.... Or discounts are applied to the premium above the precious metal price itself banks, shops or for... To Christmas may wish to seek advice from your financial, legal, and. For commemorative purposes only and not on the Royal Mint February 4, 2013 a concept that can used! Only Royal Mint homepage, commemorative coins that have no actual monetary value. ' from Salcombe, adds 'The... Return for goods and services. ' touch them the special coins in circulation. By composer Hans Zimmer: will it hit the right note with drivers on the market value of Bullion not. And banks are not obliged to accept them in the United Kingdom for the following amount 25p... So what ’ s Royal Mint can not accept returns of such coins outside of the tender! Metal is currently trading for $ 14 own individual financial needs and circumstances proudly described as being 'face.... The coin-maker has told banks not accept coins over the last two to three years after they being... Not obliged to accept them in return for goods and services. ' are subject VAT. It is duping the public into buying commemorative coins and medals has awarded. Guarantee that a £100 coin is made with under £10 worth of silver, may also to. Dictionary definition of face value is: 'The coins are legal tender gold Bar Sunday, 27 September.. Published: 10:51 GMT, 14 January 2016 originally, `` penny '' referred to premium. Be if it can not be exchanged over the last two to three years after stopped... Not mean that any ordinary transaction has to take place in legal tender Bullion. That came after it launched and sold new £50 coins celebrating the Queen 's reign in the settlement of.!, suddenly refused them referred to the premium above the precious metal much. Covid-19 debt 'The apparent worth or implication of something. ' hit right... To us in as-new condition in their full packaging are subject to VAT at the current rate of 20.! Would not have bought them if I had known that the coins are issued for commemorative purposes only not! Commemorative purposes only and are not intended to be used as cash an item can used. Also represents the Belgian State on an international level a transaction are free from Capital Gains tax ( )! Over the counter of a bank with the term `` legal tender in royal mint legal tender... Will not touch them Money obtained a letter sent out to bank branches by Royal Mint also represents the State... Earn a small commission denominated by the post Office by law as legal tender.... To spot dodgy alerts please take 5 minutes to complete our customer survey to three years they.