The standard circulating coinage of the United Kingdom, British Crown Dependencies and British Overseas Territories is denominated in pennies and pounds sterling, and ranges in value from one penny sterling to two pounds. Since decimalisation, on 15 February 1971, the pound has been divided into 100 (new) pence. Before decimalisation, twelve pence made a shilling, and twenty shillings made a pound.

The Kingdom of Scotland was a sovereign state in northwest Europe traditionally said to have been founded in 843. Its territories expanded and shrank, but it came to occupy the northern third of the island of Great Britain, sharing a land border to the south with the Kingdom of England. During the Middle Ages, Scotland engaged in intermittent conflict with England, most prominently the Wars of Scottish Independence, which saw the Scots assert their independence from the English. Following the annexation of the Hebrides and the Northern Isles from Norway in 1266 and 1472 respectively, and the capture of Berwick by England in 1482, the territory of the Kingdom of Scotland corresponded to that of modern-day Scotland, bounded by the North Sea to the east, the Atlantic Ocean to the north and west, and the North Channel and Irish Sea to the southwest. In 1603, James VI of Scotland became King of England, joining Scotland with England in a personal union. In 1707, during the reign of Queen Anne, the two kingdoms were united to form the Kingdom of Great Britain under the terms of the Acts of Union.