Is it illegal to pay with fake money?
Reviewed on 1 September 2026 · By the Detectalia technical team
The short answer: it depends on whether you knew the note was fake. The Forgery and Counterfeiting Act 1981 punishes making, passing and tendering counterfeit currency — but it protects anyone who received a note in good faith and then does the right thing.
Receiving one unknowingly is not an offence
Anyone who accepts a counterfeit note believing it to be genuine commits no offence. You are the victim: all the law expects is that, as soon as you suspect the note, you take it out of circulation and hand it in for analysis — to the police or to your bank, which forwards it to the Bank of England.
Knowingly using one is
Under the Forgery and Counterfeiting Act 1981 it is an offence to pass or tender a counterfeit note as genuine, knowing or believing it to be counterfeit — with penalties of up to 10 years' imprisonment. The Act also covers making counterfeits, and even having custody or control of one intending to pass it on.
In practice: «someone palmed it off on me» does not justify palming it off on the next person. From the moment you doubt a note, the only lawful way out is to hand it in.
What a court weighs up
The heart of the offence is knowledge: the prosecution must show the person who paid knew or believed the note was counterfeit. Circumstances such as passing fake notes repeatedly, using them for small purchases to harvest change, or carrying several identical notes all point to that knowledge. A member of the public who once spends a note that was passed to them, with no sign they knew, is unlikely to face conviction — but they do lose the money.
For businesses: the best defence is not accepting it
A business does not need forensic experts: it needs the fake note never to enter the till. Automatic verification at the moment of payment removes the legal and the financial problem at the root — and it spares your staff the awkward decision of accepting or refusing a doubtful note in front of a customer.
Frequently asked questions
What is the penalty for knowingly paying with counterfeit notes?
Passing or tendering counterfeit currency under the Forgery and Counterfeiting Act 1981 carries up to 10 years' imprisonment on indictment; the sentence depends on the case (value, quantity, repetition and any link to the counterfeiters). Passing on a note received in good faith, once you know it is fake, is also an offence.
What if I paid with one without knowing it was fake?
There is no offence without knowledge. If it is detected later, cooperate: explain where the note came from and hand it in. The financial loss, however, is not compensated.
Is photocopying or printing banknotes illegal even «as a joke»?
Reproducing banknotes outside the rules set by the Bank of England and the ECB can be unlawful even if they are never used to pay. Lawful reproductions must meet strict size and marking requirements.