Ban on non-EU corporate ownership of Scottish land dropped from final land reform legislation

The proposal was one of several set out in a consultation on land reform at the end of last year, following the recommendations of an expert 'Land Reform Review Group' commissioned by the Scottish government. Other proposals consulted on were included in the Land Reform (Scotland) Bill, which was introduced to the Scottish parliament this week.

"The Bill is primarily targeted at rural land concerns, such as changes to the rules on agricultural tenancies," said Scottish property law expert Alan Cook of Pinsent Masons, the law firm behind Out-Law.com.

"There are, however, matters of some interest to the property development and investment sectors beyond the rural estates. It introduces mechanisms for landowners to provide information about who actually controls the land - that is, its ultimate ownership as opposed to, say, a nominee company. This is a welcome improvement on the previously-mooted measures to prohibit non-EU entities from acquiring land in Scotland, in relation to which Pinsent Masons made strong representations to the Scottish government," he said.

"The Bill also introduces a new 'community right to buy', this time aimed at furthering sustainable development. We will need to understand more about the circumstances when this might be invoked and the potential impact on existing property development proposals in relation to the land, and we will continue to engage with the Scottish government and parliament on this and other issues as the Bill works its way through parliament," he said.

If passed in its current form, the Bill would establish a Scottish Land Commission to ensure that "issues of fairness, equality and social justice" connected to land use, ownership and access are given permanent statutory footing. Part of the body's role would be to assess the impact of existing land laws and make future recommendations for reform. The Bill would also require the Scottish government to produce a statement on 'rights and responsibilities' over land, and to issue guidance to landowners on engaging responsibly with communities.

Practical measures included in the Bill would give communities the right to buy land in both urban and rural parts of Scotland in order to "further sustainable development". Communities and individuals would also be given access to better information about the ownership of land through the Land Register. The legislation would also end rates exemptions for shooting and deerstalking estates, with the money potentially used to provide more funding to the Scottish Land Fund and help support community buyouts of land.

Dr Aileen McLeod, the Scottish government's minister for land reform, said that publication of the Bill was a "significant step forward in ensuring our land is used in the public interest and to the benefit of the people of Scotland".

"At the heart of these proposals is the principle of responsibility that comes with all land ownership, and while there are many exemplary landowners in Scotland, the message is clear, it is no longer acceptable to own land in Scotland and not take the public responsibilities that come with that ownership seriously," she said. "I know this Bill will be good for the people of Scotland, encourage greater public interest and participation in land and help our communities reach their potential."