In the UK, you need authority under a Treasury licence to melt down or break up a metal coin that is currently in use in the UK, or that stopped being current on or after 16 May 1969. That is the rule in section 10 of the Coinage Act 1971.
This page is a plain-English guide to that provision, not legal advice. If a particular coin, project or business activity is involved, check the current law and obtain appropriate advice before acting.
What section 10 says
Section 10 says that, except under the authority of a licence granted by the Treasury, a person must not melt down or break up a metal coin that is current in the United Kingdom, or that previously was current and ceased to be so at any time after 16 May 1969.
The Royal Mint gives the same summary in its guidance on destroying coinage. The licence exception matters: this is not a general permission to alter coins, and the page does not explain how to apply for one.
Does the rule cover old coins?
It can. The wording includes a coin that was once current in the UK and ceased to be current on or after 16 May 1969. Whether that description applies to a particular older coin depends on its history, not simply on whether it is still accepted in shops.
Do not assume that a former design, an older monarch or a pre-decimal date puts a coin outside the rule. Check the legislation and the coin’s circulation history before relying on an exception.
What about foreign and Isle of Man coins?
This article explains the UK provision. It does not determine the law for foreign coins or Isle of Man coins. Those questions require the rules that apply to the issuing country or territory and, where relevant, further legal advice.
Useful distinction: legal tender and the melting rule
Legal tender describes a narrow rule about settling debts. It is not the same question as whether section 10 applies. A coin can have ceased to be current and still fall within the wording in section 10 because of when it ceased to be current.
Sources
Read the legislation directly: Coinage Act 1971, section 10. See also the Royal Mint’s guidance on destroying coinage.