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The Act of Settlement is an Act of the Parliament of England that was passed in 1701 to settle the succession to the English and Irish crowns on Protestants only. The next Protestant in line to the throne was the Electress Sophia of Hanover, a granddaughter of James VI of Scotland, I of England and Ireland. After her the crowns would descend only to her non-Roman Catholic heirs.

The act was prompted by the failure of King William III & II and Queen Mary II, as well as of Mary's sister Queen Anne, to produce any surviving children, and the Roman Catholic religion of all other members of the House of Stuart. The line of Sophia of Hanover was the most junior among the Stuarts, but consisted of convinced Protestants. Sophia died on 8 June 1714, before the death of Queen Anne on 1 August 1714. On Queen Anne's death, Sophia's son duly became King George I and started the Hanoverian dynasty in Britain.

The act played a key role in the formation of the Kingdom of Great Britain. England and Scotland had shared a monarch since 1603, but had remained separately governed countries. The Scottish parliament was more reluctant than the English to abandon the House of Stuart, members of which had been Scottish monarchs long before they became English ones. English pressure on Scotland to accept the Act of Settlement was one factor leading to the parliamentary union of the two countries in 1707.

Under the Act of Settlement anyone who became a Roman Catholic, or who married one, became disqualified to inherit the throne. The act also placed limits on both the role of foreigners in the British government and the power of the monarch with respect to the Parliament of England. Some of those provisions have been altered by subsequent legislation.

Along with the Bill of Rights 1689, the Act of Settlement remains today one of the main constitutional laws governing the succession not only to the throne of the United Kingdom, but to those of the other Commonwealth realms, whether by assumption or by patriation. The Act of Settlement cannot be altered in any realm except by that realm's own parliament and, by convention, only with the consent of all the other realms, as it touches on the succession to the shared crown.

Following the Perth Agreement in 2011, legislation amending the act came into effect across the Commonwealth realms on 26 March 2015, and removed the disqualification arising from marriage to a Roman Catholic.

Original context
Following the Glorious Revolution, the line of succession to the English throne was governed by the Bill of Rights 1689, which declared that the flight of James II from England to France during the revolution amounted to an abdication of the throne and that James' daughter Mary II and her husband, William III (who was also James' nephew),[8] were James' successors. The Bill of Rights also provided that the line of succession would go through their descendants, then through Mary's sister Anne and her descendants, and then to the issue of William III by a possible later marriage. During the debate, the House of Lords had attempted to append Sophia and her descendants to the line of succession, but the amendment failed in the Commons.

Mary II died childless in 1694, after which William III did not remarry. In 1700, Prince William, Duke of Gloucester, who was Anne's only child to survive infancy, died of a fever at the age of 11. Thus, Anne was left as the only person in line to the throne. The Bill of Rights excluded Catholics from the throne, which ruled out James II and his descendants. However, it did not provide for the further succession after Anne. Parliament thus saw the need to settle the succession on Sophia and her descendants, and thereby guarantee the continuity of the Crown in the Protestant line.

With religion and lineage initially decided, the ascendancy of William of Orange in 1689 would also bring his partiality to his foreign favourites that followed. By 1701 English jealousy of foreigners was rampant, and action was considered necessary for correction