Scotland ended England's hopes of a Grand Slam with a gutsy display at a wet and windy Murrayfield on Saturday.
The sides went in level at the break after a penalty apiece from Charlie Hodgson and Chris Paterson.
Hodgson then edged England ahead but two Paterson penalties and a Dan Parks drop goal gave Scotland a 12-6 lead.
In the final 20 minutes, Hodgson landed two penalties for England but Paterson slotted two for Scotland to clinch a deserved victory for the hosts.
Scotland took the lead through a second-minute Paterson penalty but England were level five minutes later courtesy of Hodgson's first penalty.
As the half wore on, conditions worsened and the rain began to fall, inhibiting both sides' attempts to move the ball wide.
Just after the 20-minute mark, England lost second-row Danny Grewcock to the sin-bin when he took out a Scotland player after the whistle.
But when the Scots kicked the resulting penalty into the corner, the throw at the line-out was not straight and England cleared their lines.
England missed a chance to edge in front when Hodgson failed with a long-range penalty, but the visitors managed not to concede any points while Grewcock was off the field.
The world champions had the advantage in both territory and possession in the first half and went close to scoring tries through Lewis Moody and Ben Cohen, who dropped the ball with the line at his mercy.
Man of the match Jason White hammers England's Ben Cohen
Several England attacks were halted by an inability to control the ball at the breakdown, and the sides went in level at the break.
Within 60 seconds of the game getting underway again Hodgson edged England in front with his second penalty, but they infringed at the re-start and Paterson levelled the scores.
Three minutes later, the Scottish winger landed his third kick after Josh Lewsey turned the ball over as he tried to run out of defence.
The Scots dominated territory for the first 20 minutes of the half and went further ahead through Parks' drop goal, but Hodgson trimmed the gap with his third penalty with 20 minutes to go.
England brought on Lawrence Dallaglio for captain Martin Corry while Scotland replaced both their half-backs.
With 10 minutes to go, Scotland attacked deep into England territory only for a fine tackle by Andrew Sheridan to bundle Allister Hogg into touch at the corner flag.
The Scots edged six points clear when Paterson was given the chance to land his fourth penalty, but England hit back, Hodgson once again trimming the gap to three with five minutes to go.
However, England infringed yet again and Paterson calmly slotted his fifth penalty to give Scotland their first victory over the "auld enemy" since 2000.
Scotland: Southwell; Paterson, Di Rollo, Henderson, Lamont; Parks, Blair; Kerr, Hall, Douglas; MacLeod, Kellock; White (capt), Taylor, Hogg.
Replacements: Ford, Smith, Hines, Petrie, Cusiter, Ross, Webster
England: Lewsey; Cueto, Noon, Tindall, Cohen; Hodgson, Ellis; Sheridan, Thompson, White; Borthwick, Grewcock; Worsley, Moody, Corry (capt).
Replacements: Chuter, Freshwater, Shaw, Dallaglio, Dawson, Goode, Voyce.
Referee: Alan Lewis (Ireland).