The UK system of postcodes is an alpha-numeric scheme which consists of an 'outward' code and in 'inward' code.

The 'outward' code consists of up to two letters that signify a town or geographical area and a district number (between 1 and 99).

The 'inward' code consists of a single-digit sector number and a two-character unit identifier.

In London the inner districts are also further subdivided with a alphabetic suffix

Here are exmaples of the various formats:

  B1 1AA   - Birmingham, single character area, single digit district
  B10 1AA  - Birmingham, single character area, double digit district
  NP1 1AA  - Newport, double character area, single digit district
  NP10 1AA - Newport, double character area, double digit district
  W1A 1AA  - London, single character area, alphanumberic district 
  WC1A 1AA - London, double character area, alphanumberic district 
This is the list of area codes as of July 2000:

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