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Free Promissory Note Template

A promissory note is a written, unconditional promise by one party to pay a specific sum of money to another party on demand or by a specified date. It is a negotiable instrument recognised under English law and provides clear evidence of a payment obligation.

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PROMISSORY NOTE
England And Wales  ·  Bills Of Exchange Act 1882, Ss.83–89
MAKER (PROMISOR)
Thomas Bradley
33 Ash Grove, Sheffield S1 2PX
By: DOB: 14 February 1985, The person promising to pay
PAYEE (PROMISEE)
Helen Bradley
8 Cedar Avenue, Sheffield S3 7QR
Principal: £3,500.00 · Place: Sheffield, England
Date: 1 April 2026 · Interest: 4% per annum
FOR VALUE RECEIVED, Thomas Bradley (the "Maker") of 33 Ash Grove, Sheffield S1 2PX, unconditionally promises to pay to Helen Bradley, or to Helen Bradley's order of 8 Cedar Avenue, Sheffield S3 7QR the sum of £3,500.00 (three thousand five hundred pounds sterling), together with interest thereon at the rate of 4% per annum, on the terms set out below. This Note is made and delivered on 1 April 2026 at Sheffield, England.
1.
PAYMENT
The principal sum and all accrued interest shall be due and payable in full on 1 October 2026 (a "time note" within section 83 of the Bills of Exchange Act 1882). Payment shall be made at 33 Ash Grove, Sheffield. Payment shall be made by bank transfer to NatWest Bank, sort 55-44-33, account 66778899 or to such other account as the holder may in writing direct. If the due date is not a business day in the United Kingdom, payment shall be made on the immediately preceding business day.
2.
INTEREST
Interest shall accrue on the outstanding principal balance at 4% per annum, calculated on a daily basis from (and including) the date of this Note to (but excluding) the date of actual payment, and compounded annually on each anniversary of this Note. In the event of any default in payment, interest shall continue to accrue on the overdue amount at the default rate of 8% per annum above the Bank of England base rate from the due date until payment in full. Interest payable under this Note is simple unless otherwise expressly stated.
3.
DEFAULT AND ACCELERATION
If the Maker fails to pay any sum when due under this Note, or if any of the following occurs: (a) the Maker becomes insolvent, has a bankruptcy petition presented, enters into an individual voluntary arrangement, or has a receiver, administrator or liquidator appointed over any part of its assets; (b) the Maker makes any material misrepresentation in connection with this Note; or (c) the Maker commits any material breach of the terms of this Note that is not remedied within 14 days of written notice, the holder may, by written notice to the Maker, declare the whole outstanding principal (and any accrued interest) immediately due and payable. The Maker shall be liable for all reasonable and proportionate costs of collection, including legal fees (subject to the court's discretion).
4.
WAIVER AND NOTICES
The Maker hereby waives presentment for payment, protest, notice of dishonour and any diligence in collection, to the extent permitted by sections 48 and 49 of the Bills of Exchange Act 1882 (as applied to promissory notes by section 89). No failure or delay by the holder in exercising any right under this Note shall operate as a waiver of such right, nor shall any single or partial exercise preclude any further exercise of any other right. Every notice under this Note shall be in writing and delivered personally, by pre-paid first-class post, or by email.
5.
NEGOTIABILITY
This Note is payable to the Payee or to the Payee's order and is a negotiable instrument. It may be transferred by endorsement completed by delivery, in accordance with the Bills of Exchange Act 1882. A holder in due course (as defined by section 29 of the Bills of Exchange Act 1882) takes this Note free from any defect in title of prior parties and free from personal defences available to prior parties among themselves, save as otherwise provided by law.
6.
GOVERNING LAW AND JURISDICTION
This Note shall take effect as a promissory note within the meaning of the Bills of Exchange Act 1882 and shall be governed by and construed in accordance with the law of England and Wales. The parties submit to the exclusive jurisdiction of the courts of England and Wales in respect of any dispute arising out of or in connection with this Note (including non-contractual disputes).

The limitation period applicable to any claim on this Note is six years from the date on which the cause of action accrues, in accordance with section 5 of the Limitation Act 1980 (or the corresponding provision in Scotland and Northern Ireland).
IN WITNESS WHEREOF, the parties have executed this Agreement as of the Effective Date first written above.
MAKER
Thomas Bradley
Date: ____________________
WITNESS
2 Oak Street, Sheffield S1 3AA
Occupation: Solicitor
Peter David Walsh
Date: ____________________

What Is a Promissory Note?

A promissory note is a financial instrument in which the maker (the person who owes the money) gives a written, unconditional promise to pay a specified sum to the payee (the person owed the money) either on demand or at a fixed future date. It is governed by the Bills of Exchange Act 1882 in England and Wales.

Unlike a loan agreement, a promissory note is a one-sided instrument — only the maker signs it. It is simpler and more portable than a full loan contract, which makes it useful for documenting straightforward payment obligations between individuals or businesses.

UK promissory notes are negotiable instruments, meaning they can (in principle) be transferred to a third party under English law. In practice, most British promissory notes used between individuals are non-negotiable or contain restrictions on transfer. They are commonly used for personal loans, business debts, and property transactions in England and Wales.

What's Covered in This Template

Our promissory note template includes all the elements required for a valid instrument:

Maker Details

Full name and address of the person promising to pay.

Payee Details

Full name and address of the person to be paid.

Principal Amount

The specific sum promised, in figures and words.

Date of Issue

When the promissory note is signed.

Payment Date

When payment is due — a fixed date, on demand, or a specified number of days after the date of issue.

Interest

Whether interest is payable and at what rate.

Payment Method

How payment will be made — bank transfer, cheque, etc.

Unconditional Promise

The core legal wording: an unconditional promise to pay.

Default Provisions

What happens if payment is not made on time.

Maker Signature

The maker's dated signature confirming the promise to pay.

How to Create a Promissory Note

Follow these steps to create a valid promissory note under English law:

  1. 1

    Agree the Terms

    Settle on the amount, payment date, and whether interest will be charged before drafting the note.

  2. 2

    Use Unconditional Language

    The promise to pay must be unconditional — no conditions or contingencies. The Bills of Exchange Act 1882 requires this for the note to be a valid promissory note.

  3. 3

    Specify the Amount Clearly

    State the principal amount in both figures and words. If interest applies, state the rate and how it is calculated.

  4. 4

    Set the Payment Date

    Specify a fixed date, "on demand," or a period after the date of issue. "On demand" means the payee can request payment at any time.

  5. 5

    Sign the Note

    The maker signs and dates the note. Only the maker needs to sign — it is a unilateral promise.

Legal Considerations

Promissory notes in England and Wales are governed by the Bills of Exchange Act 1882.

This template is for informational purposes only and does not constitute legal advice. Consult a qualified solicitor for advice specific to your situation.

Reviewed for England & Wales law

Bills of Exchange Act 1882

Section 83 of the UK Bills of Exchange Act 1882 defines a promissory note as an unconditional promise in writing, signed by the maker, to pay a specified sum of money to a specified person or to the bearer, on demand or at a fixed or determinable future time. The note must meet these requirements to qualify as a UK promissory note under English law.

Stamp Duty

Historically, UK promissory notes were subject to stamp duty. The Finance Act 1971 abolished stamp duty on most promissory notes in England and Wales, but notes payable on demand that are used as bank notes may still attract duty. For most British private promissory notes, no stamp duty is payable.

Limitation Period

The UK payee has six years from the due date (or from the date of demand) to bring an action on the promissory note under the UK Limitation Act 1980. If the note is executed as a deed in England and Wales, the limitation period extends to twelve years.

Negotiability

UK promissory notes are negotiable instruments and can be transferred by endorsement or delivery under English law. If you want to prevent transfer, include the words "not negotiable" or "not transferable" on the face of the British note.

Frequently Asked Questions

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