Paragraph 4(1) provides that paragraph 1 does not have the effect of reserving property which the Queen holds in Her private capacity, such as Balmoral.
Paragraph 4(2) qualifies paragraph 4(1) by providing that it does not affect the reservation by paragraph 1 of the subject-matter of the Crown Private Estates Acts 1800 to 1873.  These Acts regulate matters relating to such private estates, such as how they may be held or disposed of.
This provision enables the Scottish Parliament to legislate to affect the Queen’s private estates in Scotland.  Any such provision in an Act of the Scottish Parliament will, however, require the Queen’s consent under standing orders made in accordance with paragraph 5 of Schedule 3.
TABLE OF RESERVED MATTERS Part I: General Reservations Detail of Provisions Paragraph: 4 Crown’s private property