Coins issued by the Royal Mint come in three broad categories:
Circulation: Exactly what it sounds like, coins issued for general use in circulation
Brilliant Uncirculated “BU”: These are coins usually struck to similar standards as circulation but are put into collector packs.
Proof: These coins are struck differently (usually things like repeatedly struck at higher pressure) which results in the detail being finer. Again, for collector packs but at a higher price point.
If I recall correctly, 1982 was the first year that both BU and proof sets appeared; earlier years were proof only.