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William was a key player in the Revolt of 1173 – 1174 against Henry II.
In 1174, at the Battle of Alnwick, during a raid in support of the revolt, William recklessly charged the English troops himself, shouting, " Now we shall see which of us are good knights!
" He was unhorsed and captured by Henry's troops led by Ranulf de Glanvill and taken in chains to Newcastle, then Northampton, and then transferred to Falaise in Normandy.
Henry then sent an army to Scotland and occupied it.
As ransom and to regain his kingdom, William had to acknowledge Henry as his feudal superior and agree to pay for the cost of the English army's occupation of Scotland by taxing the Scots.
The church of Scotland was also subjected to that of England.
This he did by signing the Treaty of Falaise.
He was then allowed to return to Scotland.
In 1175 he swore fealty to Henry II at York Castle.

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