Views sought on the removal of 1p, 2p and 5p coins from circulation and the rounding of cash transactions

Overview

The Treasury is considering the removal of 1p, 2p and 5p coins from general circulation at a date in the future (yet to be decided). From this date these coins (and their UK equivalent denominations) would cease to be legal tender on the Isle of Man. This would mean that from the agreed date members of the public could not use the 1p, 2p and 5p coins for day to day use, and retailers and institutions would not be required to accept them for payment.

At the same date from which the coins cease to be legal tender, the Treasury proposes to introduce the concept of compulsory rounding in respect of all cash transactions. Rounding will not apply to digital transactions.

The Treasury is therefore seeking views from members of the public, retailers and financial institutions, amongst others, on the proposed changes to the Currency Act and the introduction of rounding.

Why your views matter

This consultation will help the Treasury to receive views from all sectors, and groups, and understand any issues that would need to be addressed in order to implement the future proposed change. Your views will help the Treasury to determine whether to withdraw any or all of these coins from circulation.

Your views will also assist the Treasury, in the event this matter receives general support, to prepare a communication plan showing how the withdrawal of low value coins, and the introduction of rounding, would operate.

What happens next

Following the closure of the consultation, the Treasury will publish a summary of the responses. In the light of opinions and views expressed, Treasury will then consider whether or not to proceed with proposals to withdraw 1p, 2p and 5p coins from circulation, or to withdraw 1p and 2p coins only, and in either case to introduce the rounding of cash transactions. If the general feedback is positive in regard to the changes consulted on, it is likely the changes would be introduced over a period of time.