THE sale of a Highland estate by a Russian billionaire that is by-passing farmers' rights to buy their farms is an “outrageous” example of “casino culture” that has developed in Scotland’s land market, campaigners have said.
A row has erupted between farmers and Yuri Viktorovich after the 58-year-old Russian billionaire put the Tulchan Estate on the River Spey, Moray, up for sale with a guide price of £67 million.
Viktorovich has been accused by a farmers' action group for using a “significant loophole” designed to deny those who work on the five farms on the estate their rights to buy the land as outlined in the Agricultural Holdings Bill.
The listing by Savills states that in a purely legal sense, the estate is not for sale and in fact, it is a 100% share in Tulchan Sporting Estates Limited, the company which owns the land.
Meaning, because it’s a transfer of shares rather than a direct land sale, the farmers on the land will not be able to exercise their right to pre-emptively declare their interest in buying their farm.
Dr Josh Doble, director of Policy and Advocacy at Community Land Scotland, has criticised the sale, stating that it ignores good practice and the spirit of the law.
“The proposed sale of Tulchan is an outrageous example of the casino culture that has developed in the Scottish land market, and it vividly illustrates, again, why landownership in this country is in desperate need of radical reform,” he said.
Dr Doble (below) added: “It means the public loses out on £3.3 million on Land and Buildings Transaction Tax, and potentially millions more in Capital Gains Tax, which is a disgrace.
“The loophole also allows the sellers to ignore the local community and the tenant farmers, and there has been no negotiation with either of these groups about the sale.
“Because there is ‘no sale of the estate’, tenants cannot exercise their right to buy.”
“This loophole also enables the landowner to avoid provisions set out in the new Land Reform Act for lotting and prior notification, effectively avoiding the clear will of Parliament.”
Dr Doble also questioned the “opaqueness” of the sale as the company Tulchan Sporting Estates Ltd is owned by SF Scottish Properties Ltd, a firm registered in Guernsey, which is in turn ultimately controlled by The Tulchan Trust, also registered in the tax haven Guernsey, meaning it will not be liable to pay capital gains tax.
He also said he’s concerned about the “vastly inflated” value for the land, £67m for 8809 hectares, which equates to £7605 per hectare, a sale price he says is “completely divorced” from economic value.
“Serious questions should be asked about how that valuation has been reached, when the sales advert seems to focus on the estate’s sporting credentials rather than focusing on the usual drivers of land values in renewables, forestry and natural capital,” Dr Doble said.
Tulchan’s sale price comes after an “alarming trend” of Scottish estates being put up for sale as last year, Griffin Forestry was sold for £145m, Strathconon for £25.2m, Dorback for £28.5m and Waterhead of Dryffe for £28.9m.
Dr Doble said that prior to 2025, the highest maximum price between 2020 and 2024 was £25m.
“It’s a deeply concerning trend that takes landownership even further out of the reaches of local people, communities and farmers,” he added.
“How are farmers, communities or smallholders supposed to be buying land for housing, growing food, or meeting community need, when the market is being set as these ludicrous prices?”
Dr Doble added: “I think most people can see that the loophole in this case is shameful and we cannot allow the casino culture of anonymous billionaires and corporations trading huge areas of Scotland’s precious land like chips on a betting table.”
“This loophole must be addressed urgently. There must be a change in the relevant section of Company Law, which is a devolved responsibility.”
The Scottish Tenant Farmers Association ’s chairperson, Christopher Nicholson, has called for the sale to be halted.
He said: “This is a significant loophole which needs to be addressed, not just for the farm tenants and communities denied their pre-emptive rights, but also for Scottish and UK taxpayers who are funding the tax avoidance.
“With the shares of Tulchan Estate Company held offshore in Guernsey, the seller will avoid a HMRC capital gains tax liability of over £10m, if sold for £67m, and the buyer will not incur any land and building transaction tax.”
Cabinet Secretary for Rural Affairs, Land Reform and Islands Secretary Mairi Gougeon said: “I share the concerns raised about this sale by STFA, CLS and others. The Scottish Government remains resolutely committed to a future in which this kind of scenario is relegated to the history books.
“Unfortunately, under the current devolved settlement we lack the powers to directly intervene in the sale of this land through a company registered outside of the UK, as most aspects of company law are reserved to the UK Government . However, I would call on the sellers to do the right thing, to treat the tenants of Tulchan estate with the respect they deserve and to negotiate with those who have been cut out of the pre-emptive right to buy process.”
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