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← The Buccleuch Living Heritage Trust

2025-10-31-accounts

Company Registration No. SC377083 (Scotland) Charity No. SC014915 (Scotland)

THE BUCCLEUCH LIVING HERITAGE TRUST

TRUSTEES’ REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2025

THE BUCCLEUCH LIVING HERITAGE TRUST

LEGAL AND ADMINISTRATIVE INFORMATION

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(Companynumber
SC377083		 ee"
(Companynumber
SC377083
Scottish charity number $C014915
Status The organisation is acharitable companylimitedbyguarantee, incorporatedon 19 April2010
in Scotland.
Trustees TheDuke ofBuccleuch andQueensberryKTGCVOKBEFRSE
Dr Tracy Borman
Ian Gow
Bernard Higgins
SirJohnRobinson, Bt
Wilfred Weeks, OBE
Earl ofDalkeith
Secretary ColinHenderson
Registered office 58 Morrison Street
Edinburgh
EH3 8BP
Business address Weatherhouse
Bowhill
Selkirk
TD7 5ES
Independent auditors SafferyLLP
9 Haymarket Square
Edinburgh
EH3 8RY
Bankers TheRoyalBankofScotlandplc.
12 High Street
Selkirk
TD7 4DF
Handelsbanken
18 Charlotte Square
Edinburgh
EH2 4DF
Solicitors Anderson StrathernLLP
58 Morrison Street
Edinburgh
EH38BP

THE BUCCLEUCH LIVING HERITAGE TRUST

CONTENTS

SS...Sa eeee

Page
Trustees’ report 1-8
Independent auditors' report 9-12
Statement offinancial activities 13
Balance sheet 14
Cash flow statement 15
Notestothefinancialstatements 16—34

THE BUCCLEUCH LIVING HERITAGE TRUST

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 OCTOBER 2025

ReEeee eee ee e e e e The Trustees present their report and financial statements for the year ended 31 October 2025. The legal and administrative information as set out on the previous pages forms part of the report.

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) — Charities SORP (FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Principal activity

The principal activity of the charitable company is that of the promotion, education and appreciation of historic, artistic, architectural and aesthetic matters.

Trustees and key personnel

The directors of the charitable company (the charity) are its trustees for the purposes of charity law and throughout this report are collectively known as the trustees.

The following trustees held office since 1 November 2024:

The Duke of Buccleuch and Queensberry KT GCVO KBE FRSE

Dr Tracy Borman

Tan Gow Bernard Higgins Sir John Robinson, Bt Wilfred Weeks, OBE Earl of Dalkeith

Dame Rosalind Savill, DBE CBE (deceased 27 December 2024)

1

THE BUCCLEUCH LIVING HERITAGE TRUST

TRUSTEES’ REPORT (continued) FOR THE YEAR ENDED 31 OCTOBER 2025 Deennn, eee

Personnel

The Trustees are conscious of the diffuse nature of the charity's activities across a number of sites and the responsibilities this entails. The Chairman, the Duke of Buccleuch, maintains a broad oversight of all the key personnel; Rory Powell at Bowhill, Charles Lister at Boughton, Claire Oram at Drumlanrig Castle, Charlotte Rostek at Dalkeith, Graeme Burgess as Financial Controller and Scott Macdonald as Director of Collections.

The charity has an established Finance Committee consisting of the Duke of Buccleuch who acts as chair along with Sir John Robinson, Wilfred Weeks, Benny Higgins and representatives of The MDS Estates Limited. It meets twice a year and takes a more detailed oversight of the finances and subsequently reports to the main Trustee Board. In addition, a panel consisting of the Duke of Buccleuch and Wilfred Weeks acts as a sounding board on collections management issues, loans and other similar issues working closely with Scott Macdonald.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The Buccleuch Living Heritage Trust is a company limited by guarantee governed by its Memorandum and Articles of Association dated 19 April 2010. There are currently seven members (2024: seven), each of whom agrees to contribute £1 in the event of the charity winding up.

Appointment of trustees

The holder of the title of the Duke of Buccleuch and Queensberry has the power to appoint trustees.

Trustee induction and training

The Trustees work within the guidelines of the Articles of Association. There is in place a formal induction process for the trustees and a policy for providing the training to the trustees on matters relevant to their duties.

Organisation

The Board of Trustees administers the charity. It meets regularly to discuss the running of the charity, whilst there are also separate non-trustee meetings for financial planning. The Board is responsible for the day to day running of the charity, although there is a management team of suitably qualified people in place to facilitate effective operations. All major decisions are taken by the Trustees after full consideration and after having taken professional advice where appropriate.

Related parties

The charity is related to a number of companies owned by The MDS Estates Limited under the provisions of FRS 102.

Pay policy for senior staff

The Trustees consider the Board of Trustees and the senior management team comprise the key management personnel ofthe charity in charge of directing and controlling, running and operating the Trust on a day-to-day basis.

All Trustees give of their time freely and no Trustee received remuneration during the year. Details of Trustee expenses and related party transactions are disclosed in Note 23 to the financial statements.

The salaries and benefits paid to the senior staff are reviewed annually. Reference is taken to equivalent roles within equivalent businesses in so far as can be, to ensure that senior staff are properly remunerated.

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THE BUCCLEUCH LIVING HERITAGE TRUST TRUSTEES’ REPORT (continued) FOR THE YEAR ENDED 31 OCTOBER 2025

Risk management

The Trustees have assessed the major risks to which the charity is exposed and in particular those related to the operations and financing. A process of review is in place to ensure that Trustees are aware of the inherent risk within the activities of the Trust and that robust plans and mitigation are in place to reduce this to a residual level of risk and a level at which the Trustees are comfortable.

Key risks identified by the Trustees are:

The Trustees have ensured that they have plans and processes in place to mitigate each risk outlined above. A formal review of these plans and processes takes place at each Finance Committee, any change in the risk assessment is discussed, and actions to bring this assessment back in line with the Trusts agreed risk tolerance are undertaken.

OBJECTIVES AND ACTIVITIES

The general objective of the charity is the advancement of historic, artistic, architectural and aesthetic education. In order to achieve the general objective of the charity, the primary objectives include:

The strategies employed to achieve the charity's objectives are:

The three major areas of activity are:

3

THE BUCCLEUCH LIVING HERITAGE TRUST TRUSTEES’ REPORT (continued) FOR THE YEAR ENDED 31 OCTOBER 2025 i

REPORT ON ACTIVITIES

As we enter 2026, I am delighted to report completion of conservation work on the Egyptian Hall ceiling at Boughton, the final leg of a project that has taken eight years and which has been the largest and most challenging in the Trust’s history. The nine Louis Cheron ceilings dating from c.1700 have required the incredibly skill and patience of up to ten conservators working over cold winter months and the Trustees are hugely grateful to the Perry Lithgow Partnership for taking on and completing this programme of works to such a high standard. We record our special gratitude to Richard Lithgow, one of the founding partners, whose untimely death in October 2023 robbed us of one of the guiding inspirations for the work. The glory of the ceilings, now fully revealed and properly lit, will be celebrated over the coming months and we were delighted to have recognition of the scale of the achievement in an Editorial in the Burlington magazine.

Boughton has been scaffolded externally as well as internally for many months as a major conservation programme on the roof has been undertaken by the Boughton Estates. This work is expected to take nine months to complete and alongside the complete rewiring at Bowhill over a four-year period, is clear evidence of the commitment by the Buccleuch group to maintaining these historic buildings which the Trustees warmly welcome. We were particularly relieved that notwithstanding this heavy programme the Estate at short notice undertook complete replacement of the wool insulation in the Bowhill roof which posed the threat of a serious moth infestation.

Inevitably these programmes have created a variety of different additional pressures for the Trust’s own staff, and I would like to recognise them for their forbearance and ingenuity in coping and for ensuring that as much visitor access as was practical could be maintained.

In other ways this has been an unusually busy year as we have expanded our programme of supporting activities with other organisations. The Venice Music Project was a particularly rewarding example involving academic research in the archives followed by concerts of rare and occasionally unique 18" century music held within them. These took place in the autumn of 2024 in Venice and Milan and at Boughton and Warkton Church last summer. We are particularly grateful to Paul Boucher for overseeing this complex project and for overseeing a beautiful exhibition about Italy and the Grand Tour which drew on the collections across the houses. Once again Boughton was able to play its part in generating sponsorship for the event.

Dalkeith Palace hosted many varied exhibitions this year including the Scottish Furniture Makers Association, Visual Arts Scotland, and our own “Photo Dalkeith”. This was curated by Walter Dalkeith, Charlotte Rostek and Zelda Cheatle and embraced some of Scotland’s leading photographers as well as works by the local Midlothian Camera Club. Alongside these larger more complex events, there were numerous smaller events, including an evening in aid of the Abbotsford Trust.

At Drumlanrig we saw a much quieter period for the castle this year following the very successful filming of series two of the Buccaneers by Apple TV. This year the castle and its gardens busy with visitors taking advantage of the warm and dry summer to visit not only the castle but the wonderful gardens. Indeed, our gardens across the houses were in beautiful bloom across the season and we thank our gardening teams for their efforts to show the houses against their most beautiful backdrops.

Early in 2025 Drumlanrig provided the essential quiet and secure environment for the meeting of Muslim and Jewish leaders which resulted in the Drumlanrig Accords, a copy ofwhich was signed the following month and presented to HM The King at Buckingham Palace. This historic agreement offers the prospect of closer relationships between the two communities, a healing process based on shared values, and we feel privileged to have been able to play our part. In August Drumlanrig played host to musicians and supporters of the Melbourne Symphony Orchestra prior to their appearance at the Edinburgh Festival during which a memorable performance was given in the courtyard. Amongst other events over the course of the year were visits from a Rolls Royce enthusiast group, participants in the “Drive to Maggie’s” fundraising event and guests from the Royal Scot train.

At Bowhill where the house was able to reopen in part notwithstanding the rewiring, we hosted a series of major events engaging with the local community, including an afternoon tea party for Volunteers throughout the Borders run in partnership with Community Action Borders and a special free entry day for the families ofNHS Borders staff at which the NHS Borders Choir performed.

Educational opportunities and links were once again a strong element of the Trust’s work. Rory, Sarah and Andy at Bowhill proved wonderfully creative in running engaging events for local schools. Following the Covid-19 hiatus they and the other teams are once again providing a full range ofranger led activities, art-based education events and providing access to wider areas of the estates for external activities. The Trust remains fully responsible for the funding of the Young Walter Scott Prize which sits alongside the main prize and encourages the development of the writing talent of the future. Katherine White from the West Midlands won the 11-15 age category and Sophie Berry the 15-19 age category. It was gratifying that one of the early winners of the Prize, Rosie Byard-Jones was asked to join the distinguished main judging panel.

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THE BUCCLEUCH LIVING HERITAGE TRUST TRUSTEES’ REPORT (continued) FOR THE YEAR ENDED 31 OCTOBER 2025

We are responding to a growing volume of external requests for information from our archives and in providing loan items to local, regional, and national exhibitions. Our archive team, led by Crispin Powell and Craig Thomas, and with assistance from David Monro, have dealt with over 1,000 enquiries from private individuals, other collections, museums, and interest groups and they continue to provide source data to assist in research into local interest matters and historical links to the Buccleuch family and collection.

As usual we continue to respond to a number ofhigh-profile loan requests with museums and galleries. In the autumn our Collections team worked with the Museo del Prado in Madrid to send two portraits for their exhibition on Anton Raphael Mengs. Other loans currently being agreed include two Gainsborough exhibitions at the Frick Museum in New York and at Gainsborough House, as well as others at the Ashmolean Museum and Hever Castle. We are also working with the Royal Scottish Academy (RSA) as they look to celebrate their 200" anniversary. For this they will be holding a series of exhibitions across Scotland, and we will host one of those events at Dalkeith Palace with a number of pieces from their photography archive being on display as a part of the Photo Dalkeith exhibition for the year.

Aside from the Cheron ceilings, conservation remains a priority with Scott Macdonald diligent in ensuring that we prioritise and allocate the resources to those items in need of urgent attention and to resolving issues such as the environmental challenges at Bowhill which proved a grave threat to the costume collection held there. Amongst many things, work was completed on the two Bowhill Library Globes (in Paris) and by Yannick Chastang on the magnificent desk by Oppenordt and commenced on the great Caffieri clock from Boughton and a Nicholas Heude panel which was removed from Bonnie Prince Charlie’s room in Drumlanrig. As well as those external to the Trust, we express thanks to our caretaking teams, Colin Bevan, Alan Smith, Brian Gould, Andrew Ross, Sarah Cross, and Calum Flanders who oversee the safe movement and transfer of these important art treasures. This is particularly the case at Bowhill with entire rooms requiring to be moved and securely stored whilst work is carried out.

As we enter the next stages of the rewiring and heating works at Bowhill we will have an opportunity to spend some time refreshing the decoration of much of the east side of the house and perhaps to present in different ways rooms which have been untouched for many decades. The Collections team will be working with the trustees and others in the early months of 2026 to agree the programme of works to be carried out. Although progress it appears that work will probably push over into 2027.

On the conservation we would highlight our partnership with the Historic Royal Palaces (HRP). We have worked with HRP since 2022 on their tapestry internship programme and have agreed to step up as the main sponsor of the programme through to 2028. To date we have supported the training of three interns and provided our tapestry “Marcus Aurelius — reproving his wife” as a restoration piece for the students to work on.

Visitors in 2025

Across the year we were delighted to welcome a high number of visitors to our houses and gardens. The visitor numbers include those from our partnership with the Historic Houses.

2022 2023 2024 2025
Bowhill 10,141 12,857 227]. 13,833
Boughton 3,509 3,570 3,041 4,945
Drumlanrig Castle 19,338 18,616 25,430 30,233
DalkeithPalace - 2,320 5,631 4,675

“* Visitor opening in 2024 was significantly restricted due to major rewiring works around the house.

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THE BUCCLEUCH LIVING HERITAGE TRUST

TRUSTEES’ REPORT (continued) FOR THE YEAR ENDED 31 OCTOBER 2025

As reported in 2024 we have been looking at ways in which we can expand our offer of activities and exhibitions to attract a wider audience to our houses. A group, let by Walter Dalkeith, has been working with the wider estate teams and external groups to look to create new attractions with a wider appeal. In 2026 we hope that a new exhibition will be held and the subject matter will be dogs — looking not just at how dogs have figured in our art collection but also through their involvement in estate activities and in the local community. We hope to engage with both local and national external organisations in presenting a range of exhibits and activities for the event.

The trust continues to benefit from endowment incomes provided by its investment and commercial property portfolios. Given the importance of these to the finances of the Trust the trustees took the opportunity in early 2025 to hold strategy sessions with the management teams for both our commercial property and investment endowments. In both cases forward investment strategies were agreed and as a consequence of this the Trust undertook the sale of three of its commercial property holdings, replacing these older units with three newer properties each with significantly longer lease terms in place, in line with the agreed strategy of seeking longer and more secured rental incomes from this type of investment. In the summer the Trust also secured new banking terms with its primary lender, Handelsbanken. The majority of that work was undertaken by James MacLeod of Buccleuch Property, and the trustees would like to record their thanks and appreciation to James for his work in delivering these new facilities.

The Trust has only a small number of staff, and the trustees are deeply grateful to all the team members across the historic Buccleuch homes who at every level show utter dedication and loyalty to these wonderful places. I am also profoundly grateful to all of the Trustees who agaiaPucecontinue to give of their time and.share our vision of them as a living heritage for the benefit of all. The Duke of Buccleuch and Queensberry KT GCVO KBE FRSE

6

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THE BUCCLEUCH LIVING HERITAGE TRUST

TRUSTEES’ REPORT (continued) FOR THE YEAR ENDED 31 OCTOBER 2025

S e ee

STRATEGIC REPORT

Financial review

The charity has reported net losses before transfers and investments gains for the period ended 31 October 2025 of £494,356 (2024: net loss of £323,980), which includes donations received of £1,172,278 (2024: £1,128,522). The Trust holds £1,086,970 in cash (2024: £816,683). The Trust also saw its commercial property portfolio decrease by 1% in value.

The trustees invest in funds through a fund managed investment portfolio based on a medium risk strategy, balancing income and capital growth over the medium to long term. In the year to 31 October 2025, the charity saw a gain of £510,498 (2024: £671,320) on its portfolio.

Reserves

The funds of the charity are held in unrestricted funds. The unrestricted funds are funds that can be used in accordance with the charitable objectives of the charity at the discretion of the trustees. Reserves are reviewed on a regular basis and are held at such a level to ensure the ongoing financial stability of the charity.

Principal funding sources

Aside from entrance fees to various properties, the priticipal funding sources for the charity are by way of rental income from investment properties and income from listed investments. The charity also receives substantial financial support by way of donations from the group of companies with which it is affiliated. .

Investments pe The trustees invest the charity’s funds based on a medium risk strategy, balancing income and capital growth over the medium to long term. The structure of the investment portfolio during the period has been maintained in line with this strategy. The performance of the charity's investment portfolio is monitored regularly by the trustees.

Future Plans

As outlined above we are undertaking a thorough review to ensure that we continue to evaluate our key conservation and restoration works. We are presently looking to complete a longer-term plan of works in order to ensure efficient management of this process leading to agreement of priorities with all of the relevant stakeholders and ensuring that funds for the work will be available as required.

Auditors

Saffery LLP have expressed their willingness to remain in office as auditors of the charity.

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THE BUCCLEUCH LIVING HERITAGE TRUST

DeEEee eee

TRUSTEES’ REPORT (continued) FOR THE YEAR ENDED 31 OCTOBER 2025

Statement of trustees’ responsibilities — charitable company

The trustees (who are also directors of The Buccleuch Living Heritage Trust for the purposes of company law) are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kmgdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing these financial statements, the trustees are required to:

The trustees are responsible for keeping proper accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the financial statements comply with the Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006 (as amended). They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the trustees are aware:

The Trustees’ Report and Strategic Report have been approved by the Board of Trustees on 12 March 2026 and are signed on their behalf by:

On behalf of theyop The Duke of - and Queensberry KT GCVO KBE FRSE

Trustee

8

THE BUCCLEUCH LIVING HERITAGE TRUST INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS AND TRUSTEES OF THE BUCCLEUCH LIVING HERITAGE TRUST

Opinion

We have audited the financial statements of The Buccleuch Living Heritage Trust for the year ended 31 October 2025 which comprise the Statement of Financial Activities, Balance Sheet and Cash Flow Statement, and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards including, Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

9

THE BUCCLEUCH LIVING HERITAGE TRUST INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS AND TRUSTEES OF THE BUCCLEUCH LIVING HERITAGE TRUST Seeee ene

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information we are required to report that fact.

We have nothing to report in this regard.

Other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charitable company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees’ Annual Report and Strategic Report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 and the Charities Accounts (Scotland) Regulations 2006 (as amended) require us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the Trustees’ Responsibilities Statement set out on page 7, the trustees (who are also directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charitable company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative to do so.

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THE BUCCLEUCH LIVING HERITAGE TRUST

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS AND TRUSTEES OF THE BUCCLEUCH LIVING HERITAGE TRUST

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditors under the Charities and Trustee Investment (Scotland) Act 2005 and under the Companies Act 2006 and report in accordance with regulations made under those Acts.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud are detailed below.

Identifying and assessing risks related to irregularities:

We assessed the susceptibility of the charitable company’s financial statements to material misstatement and how fraud might occur, including through discussions with the trustees, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the charitable company by discussions with trustees and updating our understanding of the sector in which the charitable company operates.

Laws and regulations of direct significance in the context of the charitable company include The Companies Act 2006, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) and guidance issued by the Office of the Scottish Charity Regulator.

Audit response to risks identified:

We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of financial statement disclosures. We reviewed the charitable company’s records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the charitable company’s policies and procedures for compliance with laws and regulations with members of management responsible for compliance.

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THE BUCCLEUCH LIVING HERITAGE TRUST

INDEPENDENT AUDITORS’ REPORT TO THE MEMBERS AND TRUSTEES OF THE BUCCLEUCH LIVING HERITAGE TRUST

i

During the planning meeting, the engagement team discussed the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness ofjournal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, reviews included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud.

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: www. frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006, and to the charitable company’s trustees, as a body, in accordance with Regulation 10 of the Charities Accounts (Scotland) Regulations 2006. Our audit work has been undertaken so that we might state to the charitable company’s members and trustees those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company, the charitable company’s members and trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Harry Kendall ACA (Senior Statutory Auditor)

For and on behalf of Saffery LLP Level 4, 9 Haymarket Square Statutory Auditors Edinburgh EH3 8RY

Date: 19 March 2026

Saffery LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006.

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THE BUCCLEUCH LIVING HERITAGE TRUST

STATEMENT OF FINANCIAL ACTIVITES (INCLUDING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 OCTOBER 2025

Se eee ee en ss

Unrestricted Total funds Total funds
funds 2025 2024
£ £ £
Notes
Income and endowments from:
Donations and legacies 3 1,172,278 1,172,278 1,128,552
Incomefrom charitable activities:
Operation of houses 4 185,640 185,640 295,177
Investmentincome 5 1,950,774 1,950,774 1,713,924
Totalincome 3,308,692 3,308,692 3,137,653
Expenditure on:
Costofraisingfunds:
Commercialtrading operations 6 (983,326) (983,326) (812,700)
Expenditure on charitable activities:
Operation ofcharity 7 (2,819,722) (2,819,722) (2,648,933)
Total expenditure (3,803,048) (3,803,048) (3,461,633)
Netincome before transfers and investment gains (494,356) (494,356) (323,980)
Netgain/(loss) on revaluation ofinvestments 14 510,498 510,498 671,320
Netgain/(loss) onrevaluation ofinvestmentproperties 13 1,133,215 1,133,215 (131,377)
Gain/(Loss) on sale ofinvestmentproperties 13 1,001,512 1,001,512 (1,335)
Net gains on revaluationand sale ofinvestments 2,645,225 2,645,225 538,608
Transfers between funds
Other recognised gains:
Actuarial gain on defined benefitpension scheme 18 - - -
Netmovement in funds 2,150,869 2,150,869 214,628
Reconciliation offunds:
Total fundsbrought forward 30,387,929 30,387,929 30,173,301
Totalfundscarriedforward 19 32,538,798 32,538,798 30,387,929

The statement of financial activities includes all gains and losses recognised in the year.

All income and expenditure derive from continuing activities.

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THE BUCCLEUCH LIVING HERITAGE TRUST

BALANCE SHEET AS AT 31 OCTOBER 2025

ee

2025 2024
£ £ £ £
Fixed assets Notes
Heritage assets 10 10,291,119 10,279,879
Tangible assets: Freehold land 11 342,000 342,000
Tangible assets: Heritable property
and other assets		 v 462,118 475,985
Investmentproperties 13 18,755,000 18,950,000
Other investments 14 4,615,722 4,585,224
TotalFixedAssets 34,465,959 34,633,088
Current Assets
Debtors 15 634,079 753,561
Cash atbank and in hand 1,086,970 816,683
Total CurrentAssets 1,721,049 1,570,244
Creditors: amounts fallingdue
within one year		 16 (648,210) (815,403)
Net current assets 1,072,839 754,841
Roeilisssetslles*cuiuent
liabilities		 35,538,798 35,387,929
Creditors: amounts fallingdue
after more than oneyear		 17 (3,000,000) (5,000,000)
Netassets excluding pension
scheme deficit		 32,538,798 30,387,929
Defined benefitpension scheme
liability		 18 : -
Total net assets 32,538,798 30,387,929
The funds ofthe charity
Unrestricted funds 19 32,538,798 30,387,929
Totalcharityfunds 32,538,798 30,387,929

A total of £410,501 (2024: £410,501) of unrestricted funds is held in a separate statutory reserve, the Revaluation Reserve, on the balance sheet.

The notes on pages 16 to 34 form part of these financial statements.

Approved by the a for issue on 12th March 2026. The Duke of[tn KBE FRSE

Trustee Company Registration No. SC377083 (Scotland)

l4

THE BUCCLEUCH LIVING HERITAGE TRUST

CASH FLOW STATEMENT FOR THE YEAR ENDED 31 OCTOBER 2025

CASH FLOWFLOW STATEMENT
FOR THE YEAR ENDEDTHE YEAR ENDEDYEAR ENDEDENDED 31 OCTOBER 20252025		 CASH FLOWFLOW STATEMENT
FOR THE YEAR ENDEDTHE YEAR ENDEDYEAR ENDEDENDED 31 OCTOBER 20252025		 CASH FLOWFLOW STATEMENT
FOR THE YEAR ENDEDTHE YEAR ENDEDYEAR ENDEDENDED 31 OCTOBER 20252025		 CASH FLOWFLOW STATEMENT
FOR THE YEAR ENDEDTHE YEAR ENDEDYEAR ENDEDENDED 31 OCTOBER 20252025
Seen
EEE
2025 2024
£ £
Notes
Netcash (outflow)/inflowfrom operating 24 (15,489) 461,771
activities
Cash flows from investing activities
Interestreceived 1,678 25,822
Proceedsfrom sale ofinvestmentproperties 13 8,305,392 -
Purchaseofinvestmentproperties 13 (5,975,665) (41,377)
Proceedsfrom sale ofotherinvestments 14 480,000 200,000
Payments to acquire heritable assets 10 (11,240) (27,130)
Payments to acquire tangible fixed assets 12 (61,245) (98,254)
Net cash inflowfrom investing activities 2,738,920 59,061
Cash flows from financing activities
Interestpaid 6 (453,144) (388,904)
Bank loanrepayments made 17 (2,000,000) -
Other loan received 23 6,800,000 -
Otherloanrepaymentsmade 23 (6,800,000) -
Net cash outflow from financing activities (2,453,144) (388,904)
Increase in cash 270,287 131,928
Cash at
1 November2024		 816,683 684,755
Cashat31October2025 1,086,970 816,683

The notes on pages 16 to 34 form part of these financial statements.

The net debt of the Trust is analysed in Note 25 of the financial statements.

15

THE BUCCLEUCH LIVING HERITAGE TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2025

1. Accounting policies

1.1 Accounting convention

Basis of preparation

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) - Charities SORP (FRS 102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

The Buccleuch Living Heritage Trust meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy notes.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

1.2 Incoming resources

Rental income and visitor income are recognised as earned. Interest and dividends receivable and other income are accounted for on an accruals basis. Gift aid and donations are recognised on receipt of proceeds.

Resources expended are included in the statement of financial activities on an accruals basis.

All costs have been directly attributed to one of the functional categories of resources expended in the statement of financial activities as follows:-

Raising funds

These are costs directly attributable to the running of the commercial operations.

Charitable activities

These are costs relating to expenditure on preserving and maintaining the assets of the charity and the associated trade.

Governance costs

These are costs associated with meeting the constitutional and statutory requirements of the charity and include the audit fees and costs linked to the strategic management of the charity.

1.4 Heritage assets

Heritage assets are the tangible assets of the charity that are of historical importance and are held to advance the preservation, conservation and educational objectives of the charity and through public access contribute to the nation's culture and education. Details of the nature of the assets held are provided in Note 10.

Heritage assets are included at historic cost, if available, or deemed cost. Expenditure on the conservation and preservation of the assets is charged to the statement of financial activities when it is incurred unless it is deemed to be of a capital nature.

In accordance with SORP FRS 102 and in the opinion ofthe trustees, the assets included within Heritage Assets have such a long useful life and high residual value that any depreciation would be immaterial. In addition, the trustees consider the assets to be unique in their nature and characteristics such that values will increase rather than decrease over time. Accordingly, the trustees believe any short-term impairment that may occur from time to time to be immaterial.

16

ne

THE BUCCLEUCH LIVING HERITAGE TRUST

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2025

  1. Accounting policies (continued)

  2. 1.5. Tangible fixed assets and depreciation

Tangible fixed assets, including freehold land, are stated at cost or deemed cost less depreciation. Depreciation is provided at rates calculated to write off the cost or valuation less estimated residual value of each asset over its expected useful life, as follows Freehold land Nil Tenants’ improvements 5% straight line Fixtures and fittings straight line over 3-10 years

Investment properties are carried at fair value determined annually by external and internal valuers and derived from the current market rents and investment property yields for comparable real estate, adjusted for any difference in the nature, location, or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in the statement of financial activities.

Listed investments are held as fixed assets and are revalued to fair value at the balance sheet date. The gain or loss on revaluation is taken to the statement of financial activities.

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments. Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Otherfinancial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment offinancial assets

Financial assets, other than those held at fair value through the statement of financial activities, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value ofthe estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in the statement of financial activities.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in the statement of financial activities.

17

THE BUCCLEUCH LIVING HERITAGE TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2025

eee

Sennen eee 1. Accounting policies (continued)

Derecognition offinancial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification offinancial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities | Basic financial liabilities, including trade and other creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as ‘creditors: amounts falling due within one year' if payment is due within one year or less. If not, they are presented as ‘creditors: amounts falling due after more than one year’. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Other financial liabilities, including debt instruments that do not meet the definition of a basic financial instrument, are measured at fair value through the statement of financial activities. Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently remeasured at their fair value. Changes in the fair value of derivatives are recognised in the statement of financial activities in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

Debt instruments may be designated as being measured at fair value through the statement of financial activities to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition offinancial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.9 Pensions

The charity is a member of a multi-employer defined benefit scheme. The charity’s share of the underlying assets and liabilities are identified on a reasonable and consistent basis. The defined benefit pension scheme current services costs are charged to the SOFA within staff costs. The scheme actuarial gains and losses are recognised immediately as other recognised gains and losses. The defined benefit scheme assets are measured at fair value at the balance sheet date. Scheme liabilities are measured on an actuarial basis at the balance sheet date using the projected unit method and discounted at a rate equivalent to the current rate of return on a high quality corporate bond with equivalent term to the scheme liabilities. The resulting defined benefit asset or liability is presented separately after other net assets on the face of the balance sheet. A defined benefit plan asset is only recognised to the extent that the charity is able to recover the surplus.

The scheme provides benefits payable to members on their retirement from employment or to their dependants on death before or after retirement. The defined benefit scheme was closed to new members with effect from 4 May 2000. However, a stakeholder compliant group personal pension plan providing benefits based on defined contributions has been made available to both new members and members of the defined benefit scheme.

18

i

THE BUCCLEUCH LIVING HERITAGE TRUST

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2025

ai

i. Accounting policies (continued)

1.10 Deferred grants

Grants towards revenue expenditure are released to the statement of financial activities as the related expenditure is incurred.

1.11 Fund accounting

The funds are held in unrestricted funds. Pee

The unrestricted funds are available for use at the discretion of the trustees in furtherance of the objectives of the charity and have not been designated for other purposes.

1.12 Taxation

The company is a registered charity and is not liable for United Kingdom income tax or corporation tax on charitable activities.

1.13 Legal status

The charity is a company limited by guarantee and has no share capital. The liability of each member in the event of winding up while he or she is a member, or within one year after he or she ceases to be a member, is limited to £1.

2: Critical accounting judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the Trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. Critical accounting judgements apply principally to the carrying value of heritage assets.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Valuation of defined benefit pension scheme

The Buccleuch Estates Limited Group operates a defined benefit pension scheme for employees of the parent company, subsidiary entities and the charitable company. In order to determine the valuation of the defined benefit pension scheme asset or liability, a number of estimates need to be made based on expectations of future developments. Long-term forecasts and estimates are highly judgemental and subject to risk that actual results will differ. The principal assumptions adopted are detailed in note 18. These have also been evaluated by an actuary as part of the annual pension scheme valuation.

Valuation ofinvestment properties

Investment properties are included in the financial statements at fair value. This valuation is obtained from expert property valuers, however there is inherent uncertainty in the valuation of properties given fluctuations in property requirements and prices over time.

Carrying value ofheritage assets

Heritage assets are included in the financial statements at cost or deemed cost and assessed each year for impairment. Given the nature of these assets, there are few comparatives to be able to assess market value and therefore assumptions have to be made around indictors of impairment which introduces subjectivity to their carrying value.

19

THE BUCCLEUCH LIVING HERITAGE TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2025

SSee ee 3. Income from donations and legacies

Income from donations and legacies
2025 2024
£ £
Donationreceived from TheMDS Estates Limited 1,164,720 1,128,552
Other donations received 7,558 -
1,172,278 1,128,552

The income from donations and legacies was £1,172,278 (2024: £1,128,552) of which £1,172,278 was unrestricted (2024: £1,128,552).

4, Income from charitable activities
2025 2024
£ £
Operation ofhouses:
Rental income 14,854 6,484
Grazing lets 6,685 3,500
Dalkeith Palace 16,971 32,067
BowhillHouse 8,185 6,227
Drumlanrig Castle 79,568 187,898
BoughtonHouse 59,377 55,974
Walter ScottPrize& Sundry Incomes - 3,027
185,640 295,177
5. Investment income
2025 2024
£ £
Dividends received from listed investments 72,907 78,527
Commercial propertyrents 1,876,189 1,609,574
Bank interestreceived 1,678 25,823
1,950,774 1,713,924
6. Cost ofraising funds
2025 2024
£ £
Commercialtradingoperations:
Commercial property expenses 530,182 423,796
Loan interest 453,144 388,904
983,326 812,700

20

yw

THE BUCCLEUCH LIVING HERITAGE TRUST

  1. Governance costs

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2025

eee 7. Expenditure on charitable activities

eee
Expenditure on charitable activities		 eee eee eee eee
Operations,
exhibitions,
and the
promotion of Conservation 2025 2024
thearts Works Total Total
£ £ £ £
Walter Scottprize 88,732 88,732 87,001
Conservation ofmonuments in St.
Edmunds Church, Warkton		 2,257 2,251 3,053
DalkeithHouse
Bowhill Houseand Gardens
Boughton House and Gardens		 434,602
466,551
413,379		 434,602
466,551
413,379		 390,495
572,010
428,044
Payments to internships and artprojects 42,293 42,293 .
Drumlanrig Castle& Gardens 587,955 587,955 495,389
Governance costs (seeNote 8)
Collections charges		 87,474
276.847		 419,632 87,474
696.479		 35,960
636,981
2,400,090 419,632 2,819,722 2,648,933
2025 2024
£ £
Auditor’s remuneration 36,900 30,900
Legal andprofessional fees 50,574 5,060
87,474 35,960
9, Net income fortheyear
2025 2024
£ £
This is stated aftercharging:
Depreciation charge fortheyear 75,112 71,316
Auditor’s remuneration:
-
Audit Services		 29,750 30,900
-
Other Services		 7,150 -
112,012 102,216

21

THE BUCCLEUCH LIVING HERITAGE TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2025

==> picture [527 x 129] intentionally omitted <==

----- Start of picture text -----
|||||||| |---|---|---|---|---|---|---| |Seeee|eee| |10.|Heritage|Assets| |Properties|Chattels|Art|Others|Total| |£|£|£|£|£| |—|emneck|2,000,000|3,764,475|4,454,631|60,773|10,279,879| |Additions|-|11,240|-|-|11,240| |ciosing mcubeos|2,000,000|3,775,715|4,454,631|60,773|10,291,119|

----- End of picture text -----

The property asset is included at a valuation of £2,000,000 which the Trustees consider to be its deemed cost. The deemed cost was established by a valuation undertaken by A Brough MRICS at replacement use value, at the date of transition to FRS102, on the basis it is a specialist property. The Trustees have undertaken an annual impairment review thereafter. The property, which is a historic house, has been held within the Buccleuch Family since the 17 century. The charity makes certain parts of this property available to the general public in order to advance its objectives.

The chattels are stated at the cost for which they were settled into the Trust. Various chattels that are relevant to the wider collection are acquired at times by agreement of the trustees.

The art is stated at the cost for which it was acquired from the prior owner.

The other heritage assets are stated at their book cost.

Summary analysis of heritage asset transactions:

==> picture [465 x 207] intentionally omitted <==

----- Start of picture text -----
|||||||| |---|---|---|---|---|---|---| |2025|2024|2023|2022|2021| |£|£|£|£|£| |Donations| |Chattels|-|-|-|.|-| |Other|Assets|-|-|-|-|-| |Additions|in|Year| |Heritage|Assets|11,240|27,130|2,501|-|50,250| |Total|Additions| |to Net book|11,240|27,130|2,501|-|50,250| |value| |Opening Net|10,279,879|10,252,749|10,250,248|10,250,248|10,199,998| |book|value| |Closing Net|10,291,119|10,279,879|10,252,749|10,250,248|10,250,248| |book|value|

----- End of picture text -----

22

r

THE BUCCLEUCH LIVING HERITAGE TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2025

NOTES TO THETHE FINANCIAL STATEMENTS
FOR THE YEAR ENDEDTHE YEAR ENDEDYEAR ENDEDENDED 31 OCTOBER 20252025		 NOTES TO THETHE FINANCIAL STATEMENTS
FOR THE YEAR ENDEDTHE YEAR ENDEDYEAR ENDEDENDED 31 OCTOBER 20252025		 NOTES TO THETHE FINANCIAL STATEMENTS
FOR THE YEAR ENDEDTHE YEAR ENDEDYEAR ENDEDENDED 31 OCTOBER 20252025
STE
ee
1).
Tangible fixed assets: Freehold land
Freehold
land
£
Bookvalue at
1 November2024		 342,000
Bookvalue at31 October2025 342,000
Bookvalueat31October2024 342,000

The land included above represents 18.65 acres of land at Geddington, Northamptonshire and 30.22 acres of land at Lugton, Dalkeith.

Freehold land is held at deemed cost, in accordance with, provisions of FRS102. The land was originally valued by E Morris MRICS in accordance with RICS Appraisal and Valuations Standards in the year ended 31 October 2015. Upon transition to FRS102, the cost model was adopted and subsequently the valuation became the deemed cost of the freehold land. No depreciation is recognised on the freehold land and consideration is given annually by the Trustees as to whether any impairment of the book value is required.

12. Tangible fixed assets: Heritable property and other assets

: Tenants Fixtures
improvement and fittings Total
£ £ £
Cost
At 1 November2024
Additions
Disposals		 ' 712,390
.
-		 262,828
61,649
(1,054)		 975,218
61,649
(1,054)
At31 October2025 712,390 323,423 1,035,813
Depreciation
At 1 November2024 (333,102) (166,131) (499,233)
Charge forthe year (47,669) (27,443) (75,112)
Cancelled on Disposal - 650 650
At31 October2025 (380,771) (192,924) (573,695)
Net book value
At31 October2025 331,619 130,499 462,118
At31October2024 379,287 96,697 475,984

23

THE BUCCLEUCH LIVING HERITAGE TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2025

iND

13. Investment properties

iND
Investment properties		 iND
Investment
Properties
£
Market value
At 1 November 2024 18,950,000
Additions
Disposals
Revaluation		 5,975,665
(7,303,880)
1,133,215
At 31 October 2025 18,755,000
At31October2024 18,950,000

Five properties were valued at 31 July 2025 and one property was valued at 31 October 2025 by Colliers International in accordance with the RICS Appraisal and Valuation Manual. There were a number of sales and purchases of properties during the year. Three new units were acquired for a total price of £5,718,865 in February 2025. These were not revalued at the year end. Three properties, held prior to the 1‘* November 2024, valued at £7,125,000 were sold across the year. A number of renovation projects were also completed on several other properties to the consideration of £77,916. The historic book cost of the investment property assets is £16,801,634 (2024: £16,111,033). The valuer’s opinion of market value of each of the properties has been primarily derived using comparable recent market transactions on arm’s length terms. The net revaluation gain on the properties is included in the fair value reserve within the current year movement, being reflected though the statement of financial activities. ;

14. Other investments

Listed
investments
£
Market value
At 1 November 2024 4,585,224
Disposals
Revaluation
At31 October 2025		 (480,000)
510,498
4,615,722
At31October2024 4,585,224

The historic book cost of the listed investment assets is £2,572,840 (2024: £2,865,219). During the year there was a loss on disposal of Nil.

15. Debtors

Debtors
2025 2024
£ 5
Trade debtors 213,000 303,678
Other debtors 308,749 337,930
Prepayments 112,330 111,953
634,079 753,561

24

"e

18,

THE BUCCLEUCH LIVING HERITAGE TRUST

NOTES TO THE FINANCIAL STATEMENTS . FOR THE YEAR ENDED 31 OCTOBER 2025 16. Creditors: amounts falling due within one year year ,

eee 16. Creditors: amounts falling due within one year year

2025 2024
£ £
Trade creditors 352,144 448,991
Taxation and social security 18,885 25,758
Othercreditors 6,000 6,000
Accruals 53,205 61,252
Deferredincome 217,976 273,402
648,210 815,403

Deferred income represents rental income deferred on the heritage asset property and the investment properties held.

  1. Creditors: amounts falling due after more than one year
Creditors: amounts falling due after more thanmore thanthan one yearyear
2025 2024
£ £
Bank loans 3,000,000 5,000,000
3,000,000 5,000,000
Analysis ofloans
Whollyrepayable within fiveyears 3,000,000 5,000,000
3,000,000 5,000,000

During the financial year the Trust undertook a refinancing of the existing term loan facilities with Handelsbanken. The previous loan, which had an expiry date of the 21 June 2026, was replaced by a £5,000,000 Revolving Credit Facility in July 2025. Interest on this facility is applied to this loan at Bank of England base rate +1.73% on drawn funds and there is a non-utilisation fee of 0.7% on undrawn funds. The loan is secured by way of a standard security over all commercial properties held by the Trust. During the year the Trustees took a decision to pay down £2,000,000 of this facility, in the short term, using funds generated from the sale activities in the year whilst they continue to look for further suitable properties to add to the portfolio.

Pension costs

The Group operates a Defined benefit pension scheme for employees of the parent company and subsidiary companies.

This is a separate trustee administered fund holding the pension scheme assets to meet long term pension liabilities. A full actuarial valuation was carried out at 30 April 2024 and updated to 31 October 2025 by a qualified actuary, independent ofthe scheme's sponsoring employer. The major assumptions used by the actuary are shown below.

Member contributions are payable at the rate of 12.3% of pensionable pay for Directors & Senior Staff and 5.5% p.a. of pensionable pay for other employees. The net surplus of the fund at the year-end was £7,380,000, (2024 - £8,201,000)

At the date of the latest updated actuarial valuation of the scheme the market value of the scheme's assets was £36,159,000 (2024: £38,015,000) and the actuarial value of the assets was sufficient to cover 126% (2024: 128%) of the benefits that had accrued to members. The liability arising from the scheme amounts to £28,779,000 (2024: £29,814,000). Therefore, the scheme has net assets of £7,380,000. This was adjusted down to nil and excluded from the Group’s Statement of financial position. A judgement has been made by management that the company would not recover any of the surplus in the event of a winding up of the scheme

25

THE BUCCLEUCH LIVING HERITAGE TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2025

— 18. Pension commitments (continued)

and therefore it has not been recognised in the accounts. This is a multi-employer scheme of which the sponsoring employer is unable to identify its share of the underlying assets and liabilities in the defined benefit scheme.

Where there is a pension obligation and deferred tax liability this will be recognised in the accounts of The Buccleuch Estates Limited.

==> picture [422 x 499] intentionally omitted <==

----- Start of picture text -----
||||||| |---|---|---|---|---|---| |2025|2024| |£000|£000| |Reconciliation|of present|value|of plan|liabilities:| |At the|beginning|of the|year|29,814|25,601| |Current|service|cost|118|97| |Interest|cost|1,548|1,406| |Actuarial|losses|(1,364)|3,798| |Contributions|61|92| |Benefits|paid|(1,398)|(1,180)| |At the|end|of the|year|28,779|29,814| |2025|2024| |£000|£000| |Reconciliation|of present|value|of plan|assets:| |At the beginning|of the|year|38,015|36,307| |Interest|income|1,548|1,406| |Actuarial|gains|(2,031)|1,325| |Contributions|254|338| |Benefits|paid|(1,398)|(1,180)| |Administrative|expenses|(229)|(181)| |At the end of|the year|____—36,159|38,015| |2025|2024| |£000|£000| |Composition|of plan:| |Fair value|of|plan|assets|36,159|38,015| |Present|value|of plan|liabilities|(28,779)|(29,814)| |Effect of asset|ceiling|(7,380)|(8,201)| |Net pension|scheme|liability|-|-|

----- End of picture text -----

26

THE BUCCLEUCH LIVING HERITAGE TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2025

18. Pension commitments (continued)

2025 2024
£000 £000
Amounts recognised in profit or loss are as follows:
Current service costs 118 97
Administrative expenses 229 181
Total 347 278
2025 2024
£000 £000
Analysis ofactuarial gain / (loss) recognised inOther
Comprehensive Income:
Actual return less interestincome included innetinterest income (2,031) 1,325
Experience gains and losses arising onthe scheme liabilities (101) (2,455)
Changes in assumptions underlying thepresent value ofthe scheme
liabilities 1,465 (1,343)
Changes in asset ceiling (excluding interestincome) 821 2,505
Total 154 32
2025 2024
% %
Principal actuarial assumptions at the Statement ofFinancial
Position date (expressed as weighted averages):
Discountrate 5.50 5.30
Future salary increases 2.90 3.40
Pension increases inpayment(capped at5% pa) 2.80 3.20
Pension increases inpayment (capped at2.5% pa) 2.00 2.10
Inflation(RPI) 2.90 3.40

27

THE BUCCLEUCH LIVING HERITAGE TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2025

eeee eee 18. Pension commitments (continued)

2025 2024
% %
The mortality assumptions adopted at31 October 2025 imply the
following life expectancies on retirement at age 65:
Retiring today
Male 21.6 21.2
Female 23.8 23.7
Retiring in 20 years
Male 22.8 22.5
Female 25.3 25.2
2025 2024 2023 2022 2021
£000 £000 £000 £000 £000
Amounts forthe current and previous
fourperiods are as follows:
Definedbenefit obligation (28,779) (29,814) (25,601) (28,021) (49,549)
Scheme assets 36,159 38,015 36,307 42,482 41,091
Effectofasset ceiling (7,380) (8,201) (10,706) (14,461) -
Deficit - : : - (8,458)

The best estimate of contributions to be paid by the company to the scheme for the period commencing 1 November 2025 is £254,000 (2024: £338,000)

2025 2024
£000 £000
Assets:
Bonds 35,812 37,549
Diversified growth - -
Cash 347 466
Total 36,159 38,015

None of the fair values of the assets shown above include any direct investments in the financial instruments of The MDS Estates Limited, or any property occupied by, or other assets used by, The MDS Estates Limited.

Defined benefit — contributions payable:

Total pension contributions payable by the charity for the period were £15,831 (2024: £18,201) and no contributions were outstanding.

28

' “fay

THE BUCCLEUCH LIVING HERITAGE TRUST

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2025

——S 18. Pension commitments (continued)

Defined contribution scheme

Certain employees are members of a stakeholder compliant defined contribution pension scheme. Total pension contributions for the period were £31,730 (2024: £34,755). The contributions outstanding as at 31 October 2025 were Nil (2024: Nil).

19, Analysis of movements in funds

Unrestricted Total
funds
£ £
Balance at
1 November2024		 30,387,929 30,387,929
Net outgoingresources beforerecognisedgains (494,356) (494,356)
Netgainondisposalandrevaluationof
investments		 510,498 510,498
Gain onrevaluation ofinvestmentproperties 1,133,215 1,133,215
Gain on sale ofassets 1,001,512 1,001,512
Balance at31 October2025 32,538,798 32,538,798
Comparativefinancialinformation:
Unrestricted Total
funds
£ £
Balance at
1 November2023		 30,173,301 30,173,301
Netincoming resources before recognised gains (323,980) (323,980)
Loss onrevaluation ofinvestments 671,320 671,320
Gain on disposal andrevaluation ofinvestment.
properties		 (131,377) (131,377)
Loss on sale ofassets (1,335) (1,335)
Balanceat31October2024 30,387,929 30,387,929

Comparativefinancial information:

29

THE BUCCLEUCH LIVING HERITAGE TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2025

20. Analysis of assets between funds

Unrestricted Total
funds
£ £
Fixed assets 34,465,959 34,465,959
Current assets 1,721,049 1,721,049
Current liabilities (648,210) (648,210)
Longterm liabilities (3,000,000) (3,000,000)
Balance at 31 October2025 32,538,798 32,538,798
Comparativefinancialinformation
Unrestricted
funds Total
£ £
Fixed assets 34,633,088 34,633,088
Current assets 1,570,244 1,570,244
Current liabilities (815,403) (815,403)
Longterm liabilities (5,000,000) (5,000,000)
Balanceat31October2024 30,387,929 30,387,929

21. Transactions with trustees

No trustees received remuneration in the year.

Travel and subsistence expenses were reimbursed to four trustees during the year of £1,796 (2024: £2,864).

  1. Employees

Number of employees

The average monthly number of employees (including directors) during the period was:

,
2025 2024
Number Number
Manual 1 s
Administrative 53 43
54 43
Employment costs
2025 2024
£ £
Wages and salaries $49,122 477,987
Otherpension costs $3,560 52,956
602,682 530,943

30

ul

THE BUCCLEUCH LIVING HERITAGE TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2025

22. Employees (continued)

The number of employees whose total employee benefits (excluding employer pension costs) for the period fell within the band from £80,000 - £99,999 was two (2024: two). No other employees fell within any band from £60,000 upwards.

The total amount of employee benefits received by its key management personnel for their services to the charity was £334,434 (2024: £345,422).

23. Related party relationships and transactions

Transactions entered intowith related partiescan besummarised as follows: ea 2024
£ £
The Buccleuch Estates Limited
Miscrecharges (167,012) (8,037)
Recharge ofmansionhouse andgardens costs 930,417 873,080
763,405 865,043
The Boughton Estates Limited
Entryticket charges (70,803) (3,645)
Recharge ofmansionhouse and gardens costs 257,613 289,899
186,810 286,254
Buccleuch Charitable Foundation
Buccleuch Charitable Foundation
Recharges ofcosts (1,048) -
(1,048) -
Restoration Yard Limited
Miscrecharges 1,990 (1,475)
1,990 (1,475)
Walter, Earl of Dalkeith
Misc recharges 10,572 -
10,572 -
The MDS Estates Limited
Donations (1,164,720) (1,128,552)
GeneralRecharges (5,400) -
Recharged IT, PR, advertising 16,473 32,192
Recharged insurance costs 234,040 233,317
(919,607) (863,043)
TheDuke ofBuccleuch and Queensberry KTKBEFRSEDL
Chattels rental income, donations andrecharges (60,220) (635)
(60,220) (635)

31

THE BUCCLEUCH LIVING HERITAGE TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2025

23. Related party relationships and transactions (continued)

==> picture [478 x 300] intentionally omitted <==

----- Start of picture text -----
|||||||||||||| |---|---|---|---|---|---|---|---|---|---|---|---|---| |2025|2024| |£|£| |Tarras|Park Properties|(North)|Limited| |Proceeds|from|sale|of investment|properties|2,795,000|-| |2,795,000|-| |Tarras|Park|Properties|Limited| |Interest|on|loan|106,032|-| |106,032|-| |During|the|year,|the|Trust|entered|into|a loan agreement with Tarras Park Properties|Limited,|a company under| |common|control.|The|total|value|of the|loan received by the|Charity was|£6,800,000,|bearing|interest|at 5% per| |annum.|Both|the|loan|and the|interest|were|repaid|in|full|in|the|year.| |2025|2024| |The|balances|due from/|(to)|related|parties|at the year-end were|as|follows:|£|£| |The|Buccleuch|Estates|Limited|(5,623)|22,952| |The Boughton|Estates Limited|(2,043)|14,887| |Buccleuch|Recreational|Enterprises|Limited|-|(11,164)| |The MDS|Estates|Limited|-|567| |Restoration|Yard Limited|-|(11,470)| |The Duke|of Buccleuch|and|Queensberry KT KBE|FRSE DL|2,858|.| |(4,808)|15,772|

----- End of picture text -----

The Duke of Buccleuch and Queensberry KT KBE FRSE DL, the Earl of Dalkeith and Mr Bernard Higgins, Trustees of The Buccleuch Living Heritage Trust, are directors of MDS Group Investments Limited, The Buccleuch Estates Limited, and The Boughton Estates Limited. The Buccleuch Estates Limited and The Boughton Estates Limited are wholly owned subsidiaries of MDS Group Investments Limited, the ultimate holding company of that Group. The Duke and Earl are also trustees of the Buccleuch Charitable Foundation.

24, Reconciliation of net movement in funds to net cash flow from operating activities

==> picture [478 x 197] intentionally omitted <==

----- Start of picture text -----
|||||||| |---|---|---|---|---|---|---| |2025|2024| |£|£| |Net movement|in Funds|(excluding pension|scheme valuation)|2,150,869|215,961| |Interest paid|453,144|388,904| |Interest received|(1,678)|(25,823)| |Depreciation|75,112|71,316| |(Gain)|on|Sale|of Investment Properties|(1,001,512)|-| |(Gain)/Loss|on revaluation of Investment|Properties|(1,133,215)|131,377| |(Gain)|on revaluation|of Other Investments|(510,498)|(671,320)| |Decrease|in Debtors|119,482|440,993| |(Decrease)|in|Creditors|(167,193)|(89,637)| |Net cash|(outflow)/inflow|from|operating|activities|(15,489)|461,771|

----- End of picture text -----

32

THE BUCCLEUCH LIVING HERITAGE TRUST

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 OCTOBER 2025

==> picture [8 x 3] intentionally omitted <==

----- Start of picture text -----
sis
----- End of picture text -----

25. Analysis of net debt activities

==> picture [456 x 128] intentionally omitted <==

----- Start of picture text -----
||||||||| |---|---|---|---|---|---|---|---| |1 November|Cash|omer toch|31 October| |2024|a|2025| |flow|changes| |£|£|£|£| |Net|cash:| |Cash|at bank and|in hand|816,683|270,286|-|1,086,969| |Debts:|falling|due within|one year| |Debts:|falling|due|after one year|(5,000,000)|2,000,000|-|(3,000,000)| |Net debt|(4,183,317)|2,270,286|.|(1,913,031)|

----- End of picture text -----

26. Going concern and post balance sheet events

The Trustees consider the company to be a going concern-and the financial statements have been prepared on that basis.

The Trustees believe this to be the case due to the comfort taken from the level of reserves available to the Trust, and the income yield which that endowment produces in relation to the committed operating costs of the Trust. Any cash-flow shortfall is met through operating activities and the continued financial support provided by the benefactors to the Trust.

The Trust has produced a five-year financial forecast which supports the adoption of a Going Concern basis of accounting and, ultimately, given the significant Net Asset base reported on the Trust’s Balance Sheet, the Trustees have the ability to dispose of property or investment assets to generate a cash inflow should that become necessary at any future point in time due to unforeseen circumstances.

27. Capital commitments

As at 31 October 2025 the Trust was committed to the completion of capital projects estimated at £91,739 in relation to restoration projects relating to certain assets held by the Trust.

33

THE BUCCLEUCH LIVING HERITAGE TRUST

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2025

SSee 28. Comparative Statement of Financial Activities For the year ended 31 October 2024

Unrestricted funds Total funds
£ £
Notes
Income and endowments from:
Donations and legacies 3 1,128,552 1,128,552
Incomefrom charitable activities:
Operation ofhouses 4 295,177 295,177
Investmentincome 5 1,713,924 1,713,924
Total income 3,137,653 3,137,653
Expenditure on:
Costofraisingfunds:
Commercialtrading operations 6 (812,700) (812,700)
Expenditure on charitable activities:
Operation ofcharity 7 (2,648,933) (2,648,933)
Total expenditure (3,461,633) (3,461,633)
Net income before transfers and investmentgains (323,980) (323,980)
Netgains onrevaluation ofinvestments 14 671,320 671,320
Gain onrevaluation ofinvestment properties 13 (131,377) (131,377)
Gainon revaluation ofinvestmentproperties (1,335) (1,335)
Netincomingresources beforeotherrecognised gains 538,608 sanaens
Other recognised gains:
Actuarial Gain on defined benefitpension scheme 18 - -
Net movement in funds 214,628 214,628
Reconciliation offunds:
Total fundsbrought forward 30,173,301 30,173,301
Totalfundscarriedforward 19 30,387,929 30,387,929

34