The Scottish Parliaments
controversial land reforms were supposed to sweep away the ancient feudal
system of land ownership and hand power to the people.
Instead they may leave the taxpayer with a bill for £55
million and deliver large chunks of cash to Scotlands ancient landed
families, while reducing their inheritance tax liabilities.
At the root of the problem is nothing so mundane as
access to the hills and glens but the booming industry in Scottish barony
titles that sell on average for £55,000 each. About 1,000 good titles
are believed to exist.
Dismissed by some as vanity titles, upheld by others as
Scotlands heritage, these are not aristocratic titles, but go with land
these days no more than a token plot to keep things legal.
But a baron can call himself Baron So-and-so, his wife
takes the courtesy title of lady and, crucially, he can apply, regardless
of nationality, for a barons coat of arms that can be passed on to heirs.
(Women dont bother, they dont see the point.) But in an attempt to
grapple with the implications of land reform legislation, Scotlands
heraldic supremo, the Lord Lyon King of Arms, has said that he can no
longer recognise barons.
The nouveau baronage, often foreigners of Scots
descent, believe his edict devalues their baronies. They are planning a
judicial review to overturn the ruling and, if unsuccessful, say they will
demand compensation for loss of assets under European Human Rights
legislation now enshrined in Scots law.
The ancien baronage, on the other hand, has little to
lose and much to gain. Many old families who own bundles of baronies, yet
disdain the trade, see the soaring value of baronies as a liability.
Niall Livingston, Younger of Bachuil, the spokesman for
the Convention of the Baronage of Scotland, said: The majority of our
members have become increasingly worried about the sale of barony titles.
This worry has been exacerbated by the Inland Revenue practice of charging
death duties (inheritance tax) on a nominal valuation.
As long as the nouveau baronage is defeated and Lord
Lyons edict stands, Livingstons members can die happy. But the man
orchestrating the legal action, title-broker Brian Hamilton, Baron of
Rockhall in Dumfriesshire, says that he knows whose bespoke Edinburgh
lawyers will be first in the queue for compensation if things get that
I know of one aristocrat with more than 20 titles who
has never had any intention of selling his baronies and considers the
title trade very infra dig. But I dont imagine he and others will ignore
the prospect of compensation and I dont blame them.
Lord Lyon, in real life a retired Edinburgh lawyer,
Robin Blair, insists that he has not abolished baronies. But now that
Parliament has decreed baronies will no longer be entered in public land
registers, he says he has no way of checking who owns them. If he cannot
be sure he cannot grant a barons coat of arms, one of the key reasons for
buying a barony.
The only change I have indicated is I will not in
future grant the baronial addittament (a red cap or chapeau on a coat of
arms) because I will have no foolproof method of knowing whether an
applicant is the only owner of the barony, he said.
Fair enough, says Hamilton, a former North Sea welder
with a degree in land economy, but the real effect is to render the titles
almost worthless. Its abolition by the back door, he says, while
pointing out that the Scottish Law Commission warned Parliament, which
agreed, that abolition of baronies could incur claims for compensation.
The Scottish Executive says it is entirely Lord Lyons
affair: although it may change its mind if a bill for £55 million drops
through the Holyrood letterbox.