The currency of the UK is £ (Pound) Sterling. There are 100 pence (p) to the £. Notes of the denomination of £50 (red), £20 (purple), £10 (brown), £5 (blue) are available and coins are £2, £1, 50 pence, 20 pence, 10 pence, 5 pence, 2 pence and 1 pence. Scottish bank notes are also legal currency throughout the UK.
The UK has not, as yet, joined the European currency – the Euro.
Bureau de change
When exchanging money, you're likely to get a better rate for traveler’s checks than for cash. London banks generally offer the best rates of exchange; they're usually open Monday to Friday from 9:30am to 3:30pm. Many of the "high street" branches are now open until 5pm; a handful of central London branches are open until noon on Saturday, including Barclays, 208 Kensington High St., W8 (tel. 020/7441-3200). Money exchange is now also available at competitive rates at major London post offices, with a 1% service charge. Money can be exchanged during off-hours at a variety of change bureaus throughout the city, found at small shops and in hotels, railway stations (including the international terminal at Waterloo Station), travel agencies, and airports, but their exchange rates are poorer and they charge high service fees. Examine the prices and rates carefully before handing over your dollars, as there's no consumer organization to regulate the activities of privately run change bureaus.
In a recent Time Out survey of various exchange facilities, American Express came out on top, with the lowest commission charged on dollar transactions. They're at 30-31 Haymarket, SW1 (tel. 800/221-7282 or 020/7484-9600) and other locations throughout the city. They charge no commission when cashing traveler's checks. However, a flat rate of £2 ($3.40) is charged when exchanging the dollar to the pound. Most other agencies tend to charge a percentage rate commission (usually 2%) with a £2 to £3 ($3.40 to $5.10) minimum charge. Other reputable firms are Thomas Cook, 6 Mount St., WI (tel. 800/223-7373 or 020/7707-8501), branches of which can also be found at Victoria Station, Marble Arch, and other city locations; and, for 24-hour foreign exchange, Chequepoint, at 548 Oxford St., W1N 9HJ (tel. 020/7723-1005) and other locations throughout London (hours will vary). Try not to change money at your hotel; the rates they offer tend to be horrendous.
Travellers cheques
These are the safest way of carrying money. American Express offices will exchange Dollar travellers cheques without commission. They have branches in Victoria, Bloomsbury, Mayfair, Knightsbridge, the City, Kingston and Croydon, among others.
International money transfers
Western Union, American Express and Thomas can all provide this service.
Tax free shopping
If you are visiting from a country outside the European Union you will be able to reclaim some of the tax you pay on certain goods. The tax you can reclaim is known as VAT ( Value Added Tax) and is 17.5%. You will need to carry your passport with you and fill in a form at the time of purchase. You can either reclaim the tax at the airport or send the forms off to have your credit card refunded.
Global Refund or Vatback Tax-Free Shopping can help you with the process.
Tipping and service charges
Tipping is not as common in the UK as in the Unites States, for example. However, there are situations when you should tip.
In restaurants, it is common for the restaurant to add service charge to your bill. This varies from 10% to 17% but 12.5% is most common. This is discretionary and you are entitles to have it removed if you did not enjoy the service. However, this would be an unusual occurrence. If service is not added to your bill, you should leave approximately 10%.
