I know that English pound sterling notes ar elegal tender in Scotland. But are Scottish notes (those issued by the Bank of Scotland) legal tender in England?

Aye, well that's a wee bit of a sore point actually. I have had English store keepers refuse to accept a "Jockie Note". You can exchange them at the banks in England for good English Pounds, but it's no fair ye ken.

Also there are certain banks in OZ that refuse to take the Scottish notes, or try to discount your exchange rate (pay you less that the worth in ponds sterling). There was a big upcry about that about a year ago, and the bank lost the court case (and so they should have).

For those of you who fel like delving deeper into this fascinating subject, here is a good place to start ;)

And just to show what a nice person I am, if you send me high denomination notes of the world's major currencies (Dollars, Euros, Yen etc.), I will be more than happy to compare them with my native notes. However, due to exchange controls and various international laws on money laundering I will be unable to return any of the donated currency :D

Scottish notes are legal tender as are the notes issued in Northern Ireland. The problem is that we don't see these notes in London very often and so don't really know what they look like. Also there are a number of Scottish banks which issue notes and they all have different designs. There have been a number of counterfeit Scottish notes passed in pubs in London and that's why people can be wary.