What you need to know about the Moveable Transactions Act:
The Moveable Transactions (Scotland) Act 2023 (the “Act”) was passed by the Scottish Parliament in May 2023 and will make fundamental, and very positive, changes to the way rights can be transferred between individuals (known as assignations) and new commercial security rights over moveable assets (statutory pledges) when it comes into force.
We expect that the Act will come into force in Spring 2025, although no date has been confirmed yet. The Act modernises the law in this area and we are looking forward to working with our clients to ensure they can take advantage of the changes introduced by the Act.
What is changing?
The Act will simplify the formal requirements making it easier to assign rights or claims to others. It also introduces a new, searchable, register of assignations.
The Act also introduces a new type of security, the statutory pledge. This will allow a pledge (security) to be taken over certain moveable assets such as vehicles, plant and machinery, livestock, whisky and certain intellectual property such as copyright, trademarks, design rights and patents. A register of pledges is also being introduced.
While the new pledge cannot be granted by individuals (unless they are acting in the course of their business), it will be able to be used in commercial arrangements, as it can be granted by companies owned by clients, partnerships and sole traders.
In addition, a pledge will be able to be granted over trust assets by individuals that are charity trustees. Currently the pledge is not available to all individuals that are trustees, however, this could change by the time the new Act is in force – trustees watch this space.
How will this impact on Private Client?
The Act will make assignations easier for our clients as well as enabling us to search the register of assignations when dealing with the administration of client’s estates to ensure all assets are dealt with.
Clients owning businesses will have more security options available to them giving greater flexibility and protection for their business.
Key Contacts
Kirsten Leckie
Director/Knowledge & Development Lawyer
Private Client
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