For a locally compact group G, we study the distality of the action of automorphisms T of G on Sub G , the compact space of closed subgroups of G endowed with the Chabauty topology. For a certain class of discrete groups G, we show that T acts distally on Sub G if and only if T n is the identity map for some n ∈ N. As an application, we get that for a T -invariant lattice Γ in a simply connected nilpotent Lie group G, T acts distally on Sub G if and only if it acts distally on Sub Γ . This also holds for any closed T -invariant cocompact subgroup Γ. For a lattice Γ in a simply connected solvable Lie group, we study conditions under which its automorphisms act distally on Sub Γ . We construct an example highlighting the difference between the behaviour of automorphisms on a lattice in a solvable Lie group from that in a nilpotent Lie group. For torsion-free compactly generated nilpotent (metrizable) groups G, we obtain the following characterisation: T acts distally on Sub G if and only if T is contained in a compact subgroup of Aut(G). Using these results, we characterise the class of such groups G which act distally on Sub G . We also show that any compactly generated distal group G is Lie projective. As a consequence, we get some results on the structure of compactly generated nilpotent groups.