Scottish bank notes are technically not legal tender in England and Wales, according to the Bank of England. However, if the parties involved in a financial transaction agree, Scottish bank notes can be used for transactions in England and Wales.
Bank notes in Scotland are issued by one of three Scottish retail banks rather than by a government source. All Scottish bank notes are backed by the Bank of England, which allows them to be used unofficially with confidence outside of Scotland but inside the United Kingdom. A Scottish bank note used in England or Wales is technically a promissory note; as such, recipients of these notes in England and Wales have the choice to refuse them.