(1) This section shall apply where a contract for the sale of the landlord’s interest in land which comprises or forms part of an agricultural holding is made after the giving of a notice to quit and before its expiry.
(2) Unless, within the period of 3 months ending with the date on which a contract to which this section applies is made, the landlord and the tenant have agreed in writing whether or not the notice to quit shall continue to have effect—
(a) the landlord shall,—
(i) within 14 days after the making of the contract; or
(ii) before the expiry of the notice to quit,
whichever is the earlier, give notice to the tenant of the making of the contract; and
(b) the tenant may, before the expiry of the notice to quit and not later than one month after he has received notice under paragraph (a) above, give notice in writing to the landlord that he elects that the notice to quit shall continue to have effect.
(3) Where this section applies, unless—
(a) the landlord and tenant have agreed that the notice to quit shall continue to have effect;
(b) the tenant has so elected, under subsection (2)(b) above; or
(c) the landlord having failed to give notice of the making of the contract in accordance with subsection (2)(a) above, the tenant quits the holding in consequence of the notice to quit,
the notice to quit shall cease to have effect.
(4) Where this section applies and there is an agreement between the landlord and the tenant that the notice to quit shall continue to have effect, the notice shall not be invalid by reason only that the agreement is conditional.
29 Notice to quit part of holding to be valid in certain cases.
(1) A notice to quit part of an agricultural holding held on a tenancy from year to year shall not be invalid on the ground that it relates to part only of the holding if it is given—
(a) for the purpose of adjusting the boundaries between agricultural units or of amalgamating agricultural units or parts thereof, or
(b) with a view to the use of the land to which the notice relates for any of the purposes mentioned in subsection (2) below,
and the notice states that it is given for that purpose or with a view to such use, as the case may be.
(2) The purposes referred to in subsection (1)(b) above are—
(a) the erection of farm labourers’ cottages or other houses with or without gardens;
(b) the provision of gardens for farm labourers’ cottages or other houses;
(c) the provision of allotments;
(d) the provision of small holdings under the Small Landholders (Scotland) Acts 1886 to 1931, or of such holdings as are referred to in section 64 of the Agriculture (Scotland) Act 1948;
(e) the planting of trees;
(f) the opening or working of coal, ironstone, limestone, brick-earth, or other minerals, or of a stone quarry, clay, sand, or gravel pit, or the construction of works or buildings to be used in connection therewith;
(g) the making of a watercourse or reservoir;
(h) the making of a road, railway, tramroad, siding, canal or basin, wharf, or pier, or work connected therewith.
29A Holding to be restored in certain circumstances
(1) Subsection (2) below applies where the tenancy of part of an agricultural holding has been terminated by reason of a notice to quit which is rendered valid by virtue of subsections (1)(b) and (2)(f) of section 29 of this Act.
(2) Where—
(a) this subsection applies; and
(b) the land which formed that part has subsequently been made suitable for, and is available for, agricultural use,
that land shall, if the conditions in subsection (3) below are fulfilled, be restored to the holding.
(3) The conditions are that—
(a) the tenancy of the holding continues in force with the same landlord and tenant under the lease; and
(b) any compensation paid to the tenant in consequence of the termination was calculated on the basis that the holding would be restored under this section.
30 Tenant’s right to treat notice to quit part as notice to quit entire holding.
Where a notice to quit part of an agricultural holding is given to a tenant, being a notice which is rendered valid by section 29 of this Act, and the tenant within 28 days after—
(a) the giving of the notice, or
(b) where the operation of the notice depends on any proceedings under the foregoing provisions of this Act, the time when it is determined that the notice has effect,
whichever is later, gives to the landlord a counter-notice in writing that he accepts the notice as a notice to quit the entire holding, to take effect at the same time as the original notice, the notice to quit shall have effect accordingly.
31 Reduction of rent where tenant dispossessed of part of holding.
(1) Where—
(a) the tenancy of part of an agricultural holding terminates by reason of a notice to quit which is rendered valid by section 29 of this Act; or
(b) the landlord of an agricultural holding resumes possession of part of the holding in pursuance of a provision in that behalf contained in the lease,
the tenant shall be entitled to a reduction of rent of an amount, to be determined by the Land Court, proportionate to that part of the holding, together with an amount in respect of any depreciation of the value to him of the residue of the holding caused by the severance or by the use to be made of the part severed.
(2) Where subsection (1)(b) above applies, the Land Court, in determining the amount of the reduction, shall take into account any benefit or relief allowed to the tenant under the lease in respect of the part whose possession is being resumed.
32 Further restrictions on operation of certain notices to quit.
(1) Subsections (2) to (5) below shall apply where—
(a) notice to quit an agricultural holding or part of an agricultural holding is given to a tenant; and
(b) the notice includes a statement in accordance with section 22(2) of this Act and paragraph (d) thereof to the effect that it is given by reason of the tenant’s failure to remedy a breach of a kind referred to in section 66(1) of this Act.
(2) If not later than one month from the giving of the notice to quit the tenant serves on the landlord a counter-notice in writing requiring that this subsection shall apply to the notice to quit, subject to subsection (3) below, the notice to quit shall not have effect (whether as a notice to which section 22(1) of this Act does or does not apply) unless the Land Court consent to the operation thereof.
(3) A counter-notice under subsection (2) above shall be of no effect if within one month after the giving of the notice to quit the tenant serves on the landlord an effective notice under section 23(2) of this Act requiring the validity of the reason stated in the notice to quit to be determined by the Land Court.
(4) Where—
(a) the tenant has served on the landlord a notice of the kind referred to in subsection (3) above;
(b) the notice to quit would, apart from this subsection, have effect in consequence of the Land Court’s determination; and
(c) not later than one month from the date on which the Land Court’s determination is delivered to the tenant the tenant serves on the landlord a counter-notice in writing requiring that this subsection shall apply to the notice to quit;
the notice to quit shall not have effect (whether as a notice to which section 22(1) of this Act does or does not apply) unless the Land Court consent to the operation thereof.
(5) On an application made in that behalf by the landlord, the Land Court shall consent under subsection (2) or (4) above or (6) below to the operation of the notice to quit unless in all the circumstances it appears to them that a fair and reasonable landlord would not insist on possession.
(6) Where a notice to quit is given in accordance with section 66(3) of this Act in a case where the Land Court’s determination under that section followed an earlier notice to quit to which subsection (1) above applied, if the tenant serves on the landlord a counter-notice in writing within one month after the giving of the subsequent notice to quit (or, if the date specified in that notice for the termination of the tenancy is earlier, before that date), the notice to quit given under section 66(3) of this Act shall not have effect unless the Land Court consent to the operation thereof.
(1) This Part applies where the tenant of an agricultural holding to which subsection (2) applies wishes to quit the tenancy before the date on which the tenancy could otherwise be brought to an end by notice of intention to quit or, failing which, assign the lease to an individual who is a new entrant to, or who is progressing in, farming.
(2) This subsection applies to an agricultural holding in respect of which—
(a) the lease was entered into before 27 November 2003, or
(b) the lease—
(i) was entered into in writing on or after that date but prior to the commencement of the tenancy, and
(ii) expressly states that this Act is to apply to the tenancy.
32B New entrants to farming and persons progressing in farming
(1) The Scottish Ministers may by regulations make further provision about the individuals who are new entrants to, or who are progressing in, farming for the purposes of this Part.
(2) Regulations under subsection (1) are subject to the negative procedure. Notice of intention to relinquish
(1) The tenant may serve notice in writing on the landlord of the holding indicating that the tenant will quit the tenancy provided the landlord pays to the tenant an amount, calculated in accordance with section 32L, as compensation for so doing.
(2) A notice served under subsection (1) is a “notice of intention to relinquish”.
(3) The tenant must, at the same time as serving a notice of intention to relinquish, send a copy of the notice to the Tenant Farming Commissioner.
32D Form and content of notice of intention to relinquish
(1) The Scottish Ministers may by regulations prescribe the form and content of notices of intention to relinquish.
(2) Regulations under subsection (1) may, in particular, include provision for—
(a) such notices to be dated,
(b) such notices to state—
(i) the names and designations of the landlord and the tenant of the agricultural holding,
(ii) the name (if any) and the address of the holding or such other description of the holding as will identify it,
(iii) the rent currently payable in respect of the holding,
(iv) the date on which the rent for the holding was last varied or, as the case may be, continued unchanged (whether by agreement or by determination of the Land Court),
(v) the improvements (if any) carried out to the holding by the tenant,
(c) the information that must or may accompany such notices (which may include maps or plans of the holding).
(3) Regulations under subsection (1) are subject to the negative procedure.
32E Restrictions on serving notice of intention to relinquish
(1) A tenant may not serve a notice of intention to relinquish if, at the date of service, any of subsections (2) to (7) apply.
(2) This subsection applies where the tenant has served notice of intention to quit.
(3) This subsection applies where the tenant has failed to comply with a written demand, served on the tenant by the landlord, requiring the tenant—
(a) to pay rent due in respect of the holding within 2 months from the date of service of the demand, or
(b) to remedy a relevant breach within a reasonable time.
(4) In subsection (3)(b), a “relevant breach” is a breach by the tenant of a condition of the tenancy which—
(a) is capable of being remedied, and
(b) is not inconsistent with the fulfilment of the tenant's responsibilities to farm in accordance with the rules of good husbandry.
(5) This subsection applies where the landlord has served notice to quit to which section 22(2) applies.
(6) This subsection applies where the landlord has served notice to quit to which section 22(2) does not apply and—
(a) the period mentioned in section 23(1) within which the landlord may apply to the Land Court for consent to the operation of the notice has not expired,
(b) the landlord has applied in accordance with that section and the Land Court has yet to reach a decision, or
(c) the Land Court has, on such an application, consented to the notice and—
(i) any period within which an appeal may be made against that decision has not expired,
(ii) such a period has expired without an appeal having been made, or
(iii) an appeal having been made, the decision of the Land Court to consent to the notice has been upheld.
(7) This subsection applies where, in relation to a notice to quit to which section 22(2) does not apply, the Land Court has, following an application under section 23(1), refused consent to its operation and—
(a) any period within which an appeal may be made against that decision has not expired,
(b) an appeal has been made but not determined, or
(c) the decision of the Land Court to refuse consent to the notice has been quashed.
32F Restriction on notice to quit etc. where notice of intention to relinquish served
(1) This section applies where a tenant serves a notice of intention to relinquish.
(2) During the relevant period, sections 22 to 24 and 43 have effect in relation to the tenancy subject to the following modifications.
(3) The relevant period is the period beginning with the date of service of the notice of intention to relinquish and ending with—
(a) the date the tenancy is terminated under section 32T(2), or
(b) the date on which the period of 1 year mentioned in section 32U(2) expires.
(4) Section 22(2) has effect as if—
(a) paragraphs (a) and (b) were omitted, and
(b) for “any of paragraphs (a) to (f)” there were substituted “ any of paragraphs (c) to (f) ”.
(5) Section 24(1) has effect as if paragraph (e) were omitted.
(6) Section 43 has effect as if, for subsection (2), there were substituted—
(2) Compensation is not payable under this section where—
(a) the notice to quit relates to land being permanent pasture which the landlord has been in the habit of letting annually for seasonal grazing or of keeping in the landlord's own occupation and which has been let to the tenant for a definite and limited period for cultivation as arable land on condition that the tenant must, along with the last or waygoing crop, sow permanent grass seeds, or
(b) the application of section 22(1) to the notice to quit is excluded by any of paragraphs (c) to (f) of subsection (2) of that section.
.
32G Appointment of valuer by Tenant Farming Commissioner
(1) This section applies where the Tenant Farming Commissioner receives a copy of a notice of intention to relinquish.
(2) The Commissioner must, before the expiry of the period mentioned in subsection (3), appoint a person, who meets the requirements mentioned in subsection (4), to—
(a) carry out the assessment mentioned in section 32J(1), and
(b) calculate the amount to be payable by the landlord to the tenant as compensation for the tenant quitting the tenancy were the landlord to accept the notice of intention to relinquish.
(3) The period is—
(a) the period of 14 days beginning with the date on which the notice is served, or
(b) such other period specified by the Scottish Ministers by regulations.
(4) The requirements referred to in subsection (2) are that the person appears to the Commissioner—
(a) to be independent of the landlord and the tenant, and
(b) to possess qualifications, knowledge and experience suitable for assessing the—
(i) value of agricultural land, both with vacant possession and where subject to agricultural holdings, and
(ii) compensation that may be payable to tenants and landlords of such holdings.
(5) A person appointed under subsection (2) is the “valuer”.
(6) The Tenant Farming Commissioner must give notice in writing to the tenant and the landlord of the name and address of the valuer appointed under subsection (2).
(7) Regulations under subsection (3)(b) are subject to the negative procedure.
32H Objection to valuer appointed by Tenant Farming Commissioner
(1) This section applies where the tenant or the landlord objects to the person appointed under section 32G(2) by the Tenant Farming Commissioner on one or more of the grounds mentioned in subsection (2).
(2) Those grounds are that the person—
(a) is not independent of the landlord or, as the case may be, the tenant, or
(b) does not possess the qualifications, knowledge and experience mentioned in section 32G(4)(b).
(3) The tenant or, as the case may be, the landlord may apply to the Land Court to appoint a person as the valuer in place of the person appointed by the Tenant Farming Commissioner.
(4) An application under subsection (3)—
(a) must—
(i) be made before the expiry of the period of 14 days beginning with the date of the notice under section 32G(6), and
(ii) state the ground of objection to the person appointed by the Tenant Farming Commissioner, and
(b) may propose a person to be appointed as the valuer in place of that person.
(5) The Land Court may, on an application under subsection (3)—
(a) reject the objection, or
(b) appoint a person as the valuer (whether a person proposed in the application or not).
(6) The decision of the Land Court on an application under subsection (3) is final.
(1) The tenant is responsible for meeting the expenses, incurred in carrying out functions under this Part, of a valuer appointed—
(a) by the Tenant Farming Commissioner under section 32G(2), or
(b) by the Land Court under section 32H(5)(b).
(2) Where, in the case of a valuer appointed under section 32G(2), those expenses have been met by the Tenant Farming Commissioner, the Commissioner is entitled to recover them from the tenant.
(1) The valuer is to assess—
(a) the value of the land to which the holding relates—
(i) if sold with vacant possession,
(ii) if sold with the tenant still in occupation, and
(b) the amount of compensation—
(i) to which the tenant would be entitled, by virtue of Part 4, sections 40 and 41 or any agreement applying in place of that Part or those sections, in relation to any improvements to the holding,
(ii) to which the tenant would be entitled under section 44, and
(iii) to which the landlord would be entitled under sections 45 and 45A.
(2) In assessing the value of the land under subsection (1)(a)(i) or (ii), the valuer—
(a) is to have regard to the value that would be likely to be agreed between a reasonable seller and buyer of such land assuming the seller and buyer are, as respects the transaction, willing,
(b) is to take account—
(i) of when the landlord would in the normal course of events have been likely to recover vacant possession of the land from the tenant,
(ii) of the terms and conditions of any lease, other than the lease of the holding, affecting the land,
(c) is to take no account of—
(i) the existence of any person to whom the tenant could assign the lease of the holding under section 10A or to whom the lease could be bequeathed under section 11,
(ii) the absence of the period of time during which the land would, on the open market, be likely to be advertised and exposed for sale,
(iii) any factor attributable to any use of the land which is or would be unlawful,
(iv) any increase in the value of the land resulting from improvements in relation to which the tenant would be entitled to compensation as mentioned in subsection (1)(b)(i) and (ii),
(v) any increase in the value of the land resulting from the use of any of the land, or changes to the land, for a purpose that is not one permitted by the lease of the holding,
(vi) any reduction in the value of the land resulting from any dilapidation or deterioration of, or damage to, fixed equipment or land caused or permitted by the tenant in relation to which the landlord would be entitled to compensation as mentioned in subsection (1)(b)(iii),
(vii) any reduction in the value of the land resulting from the use of any of the land, or changes to the land, for a purpose that is not one permitted by the lease of the holding.
(3) For the purposes of subsection (2)(c)(iv)—
(a) subject to paragraph (b), “improvements” is to be construed by reference to schedule 5, and
(b) the continuous adoption by the tenant of a standard of farming more beneficial to the land than the standard or system required by the lease or, in so far as no system of farming is so required, than the system of farming normally practised on comparable agricultural land in the district, is to be treated as an improvement executed at the tenant's expense.
(4) The valuer is to calculate, in accordance with section 32L, the amount to be payable by the landlord to the tenant as compensation were the landlord to accept the notice of intention to relinquish.
(5) The Scottish Ministers may by regulations amend subsections (2) and (3) so as to—
(a) add,
(b) remove,
(c) vary the description of,
a matter which the valuer must have regard to, take account of or take no account of in assessing the value of the land under subsection (1)(a)(i) or (ii).
(6) Regulations under subsection (5) are subject to the affirmative procedure.
(1) The valuer is—
(a) to invite the landlord and the tenant to make written representations about the assessment under section 32J(1), and
(b) to have regard to any such representations.
(2) The valuer may—
(a) enter onto land, and
(b) make any reasonable request of the landlord and tenant,
for the purposes of any assessment under section 32J(1).
The amount to be payable by the landlord to the tenant as compensation were the landlord to accept the notice of intention to relinquish is to be calculated as follows:
Step 1 Deduct from the value of the land to which the holding relates if sold with vacant possession the value of the land if sold with the tenant still in occupation (both as assessed under section 32J(1) or, as the case may be, 32N(3)(a)).
Step 2 Divide the amount calculated under Step 1 by 2.
Step 3 Add to the amount of compensation to which the tenant would be entitled in relation to improvements the amount of compensation to which the tenant would be entitled under section 44 (as so assessed).
Step 4 Deduct from the amount calculated under Step 3 the amount of compensation to which the landlord would be entitled under sections 45 and 45A (as so assessed).
Step 5 Add to the amount calculated under Step 2 the amount calculated under Step 4.
(1) The valuer must, before the expiry of the period mentioned in subsection (2), serve a notice in writing, specifying the matters mentioned in subsection (3), on—
(a) the tenant, and
(b) the landlord.
(2) The period is the period of 8 weeks beginning with—
(a) the date on which the period, within which an application under section 32H(3) may be made, expires, or
(b) where such an application is made, the date of the Land Court's decision on it.
(3) The matters are—
(a) the value, assessed under section 32J(1)(a), of the land to which the holding relates—
(i) if sold with vacant possession, and
(ii) if sold with the tenant still in occupation,
(b) the amount, assessed under section 32J(1)(b), of compensation—
(i) to which the tenant would be entitled in relation to any improvements to the holding,
(ii) to which the tenant would be entitled under section 44,
(iii) to which the landlord would be entitled under section 45 and 45A, and
(c) the amount, calculated in accordance with section 32L, to be payable by the landlord to the tenant as compensation were the landlord to accept the tenant's notice of intention to relinquish.
(4) The notice must also—
(a) be dated,
(b) state the date of valuation of each of the values and amounts mentioned in subsection (3), and
(c) set out how the valuer arrived at each of those values and amounts.
(5) The notice may also contain or be accompanied by any other information that the valuer considers appropriate.
(6) A notice served under subsection (1) is a “notice of assessment”.
(7) The valuer must, at the same time as serving a notice of assessment, send a copy of the notice to the Tenant Farming Commissioner.
32N Appeal to Lands Tribunal against valuer's assessment
(1) The tenant or the landlord may appeal to the Lands Tribunal against a notice of assessment.
(2) An appeal under this section must—
(a) state the grounds on which it is being made, and
(b) be lodged before the expiry of the period of 21 days beginning with the date the notice of assessment was served.
(3) The Lands Tribunal may—
(a) reassess any value or amount of compensation mentioned in section 32J(1) (and any factor affecting the value or amount),
(b) determine the amount to be payable by the landlord to the tenant as compensation, calculated in accordance with section 32L, were the landlord to accept the tenant's notice of intention to relinquish.
(4) The valuer whose assessment is appealed against may be a witness in the appeal proceedings.
(5) In the appeal proceedings, in addition to the landlord and the tenant, the following persons are entitled to be heard—
(a) where the landlord is a creditor in a standard security, the owner of the land,
(b) where the landlord is the owner of the land, any creditor in a standard security over the land or any part of it.
(6) The Lands Tribunal is to give written reasons for its decision on an appeal under this section.
(7) The decision of the Lands Tribunal in an appeal under this section is final.
32O Referral of certain matters by Lands Tribunal to Land Court
Where, in an appeal before the Lands Tribunal under section 32N, an issue of law arises which may competently be determined by the Land Court by virtue of this Act or the 2003 Act, the Tribunal is to refer the issue to the Land Court for determination unless the Tribunal considers that it is not appropriate to do so.
32P Withdrawal of notice of intention to relinquish
(1) The tenant may, before the expiry of the period mentioned in subsection (2), withdraw a notice of intention to relinquish by serving notice on the landlord.
(2) The period is—
(a) the period of 35 days beginning with the day the notice of assessment is served, or
(b) if an appeal is made to the Lands Tribunal under section 32N, the period of 14 days beginning with the date of the Tribunal's decision.
(3) The tenant must, at the same time as serving notice under subsection (1), send a copy of the notice to—
(a) the Tenant Farming Commissioner,
(b) any valuer appointed under section 32G(2) or, as the case may be, 32H(5)(b).
(4) Where the tenant serves notice under subsection (1)—
(a) if no person has been appointed as the valuer under section 32G(2), the Tenant Farming Commissioner need not so appoint a person,
(b) if a valuer has been appointed under section 32G(2) or, as the case may be, 32H(5)(b), the valuer's appointment comes to an end.
32Q Landlord's acceptance of notice of intention to relinquish
(1) The section applies where the landlord wishes to accept the tenant's notice of intention to relinquish.
(2) The landlord must—
(a) serve notice on the tenant which complies with subsection (3), and
(b) pay the amount of compensation calculated under section 32L before the expiry of the period mentioned in subsection (5).
(3) A notice complies with this subsection if it—
(a) is served before the expiry of the period mentioned in subsection (4), and
(b) states that the landlord will, in exchange for the tenant quitting the tenancy, pay to the tenant—
(i) the amount of compensation assessed by the valuer and specified in the notice of assessment, or
(ii) where the Lands Tribunal has determined under section 32N(3)(b) that the compensation should be a different amount, that amount.
(4) The period referred to in subsection (3)(a) is the period of 28 days beginning with the date on which the period, within which the tenant may, under section 32P, withdraw the notice of intention to relinquish, expires.
(5) The period referred to in subsection (2)(b) is the period of 6 months beginning with the date on which the period, within which the tenant may, under section 32P, withdraw the notice of intention to relinquish, expires.
(6) A notice served under subsection (2)(a) is a “notice of acceptance”.
(7) The landlord must, at the same time as serving a notice of acceptance, send a copy of the notice to the Tenant Farming Commissioner.
(8) The Scottish Ministers may by regulations specify the form and content of notices of acceptance.
(9) Regulations under subsection (8) are subject to the negative procedure.
(1) The landlord may, at any time before the expiry of the period of 28 days mentioned in section 32Q(4), serve notice on the tenant stating that the landlord does not wish to accept the notice of intention to relinquish.
(2) A notice served under subsection (1) is a “notice of declinature”.
(3) The landlord must, at the same time as serving a notice of declinature, send a copy of the notice to—
(a) the Tenant Farming Commissioner,
(b) any valuer appointed under section 32G(2) or, as the case may be, 32H(5)(b).
(4) Where the landlord serves notice of declinature—
(a) if no person has been appointed as the valuer under section 32G(2), the Tenant Farming Commissioner need not so appoint a person,
(b) if a valuer has been appointed under section 32G(2) or, as the case may be, 32H(5)(b), the valuer's appointment comes to an end.
(1) A landlord may, at any time before the expiry of the period of 6 months mentioned in section 32Q(5), withdraw a notice of acceptance by serving notice in writing on the tenant.
(2) A notice served under subsection (1) is a “notice of withdrawal”.
(3) The landlord must, at the same time as serving notice of withdrawal, send a copy of the notice to the Tenant Farming Commissioner.
(4) The tenant is entitled to recover from the landlord any loss or expense incurred in reliance on the landlord's notice of acceptance.
32T Consequences of landlord paying compensation to tenant
(1) This section applies where, on or before the expiry of the period mentioned in section 32Q(5), the landlord pays to the tenant the amount of compensation in accordance with section 32Q(2)(b).
(2) The tenancy comes to an end—
(a) on the expiry of that period, or
(b) on such earlier date as the tenant and landlord may agree.
(3) Where a tenancy is terminated under subsection (2), section 21 does not apply in respect of the tenancy.
(4) Any claim or entitlement to compensation or any other payment, other than to the compensation mentioned in section 32J(1)(b), is preserved despite the payment of compensation in accordance with section 32Q(2)(b).
32U Assignation where landlord does not accept notice of intention to relinquish
(1) This section applies where the tenant serves notice of intention to relinquish and the landlord—
(a) serves notice of declinature,
(b) fails to serve notice of acceptance before the expiry of the period of 28 days mentioned in section 32Q(4), or
(c) serves notice of acceptance but—
(i) serves notice of withdrawal before the expiry of the period of 6 months mentioned in section 32Q(5), or
(ii) fails to pay the amount of compensation required before the expiry of that period in accordance with section 32Q(2)(b).
(2) The tenant may, before the expiry of the period of 1 year beginning with the date mentioned in subsection (3), assign the lease of the holding to an individual who is a new entrant to, or who is progressing in, farming.
(3) That date is—
(a) the date notice of declinature is served,
(b) where the landlord fails to serve notice of acceptance before the expiry of the period of 28 days mentioned in section 32Q(4), the date falling at the end of that period,
(c) the date notice of withdrawal is served, or
(d) where the landlord fails to pay the amount of compensation required before the expiry of the period of 6 months mentioned in section 32Q(5), the date falling at the end of that period.
32V Application of section 10A to assignation under this Part
Section 10A has effect in relation to an assignation by virtue of section 32U(2)—
(a) as if subsections (1), (1A) and (6) were omitted,
(b) as if, for subsections (3), (3A) and (3B) there were substituted—
(3) The landlord may withhold consent to the proposed assignation if—
(a) the proposed assignee is not an individual who is a new entrant to farming or who is progressing in farming, or
(b) there are reasonable grounds for doing so.
(3A) In subsection (3)(b), reasonable grounds include, in particular, that the landlord is not satisfied that the proposed assignee—
(a) would have the ability to pay—
(i) the rent due under the lease, or
(ii) for adequate maintenance of the land, or
(b) has the skills or experience that would be required properly to manage and maintain the land in accordance with the rules of good husbandry.
(3B) The ground of objection in subsection (3A)(b) does not apply where the proposed assignee is a new entrant to farming and—
(a) is engaged in or will begin, before the expiry of the period of 6 months beginning with the date of the notice under subsection (2), a course of relevant training in agriculture which the person is expected to complete satisfactorily within 4 years from that date, and
(b) has made arrangements to secure that the holding is farmed with reasonable efficiency until the person completes that course.
.
In this Part—
“new entrant to farming” and “person progressing in farming” are to be construed in accordance with section 32B,
“notice of acceptance” has the meaning given by section 32Q(6),
“notice of assessment” has the meaning given by section 32M(6),
“notice of declinature” has the meaning given by section 32R(2),
“notice of intention to relinquish” has the meaning given by section 32C(2),
“notice of withdrawal” has the meaning given by section 32S(2),
“Tenant Farming Commissioner” means the person appointed under section 10(1) of the Land Reform (Scotland) Act 2016,
“valuer” means the person appointed under section 32G(2) or, as the case may be, 32H(5)(b).
In this Part the following are referred to as “improvements”—
“1923 Act improvement” means an improvement carried out on an agricultural holding, being an improvement specified in Schedule 3 to this Act, and begun before 31st July 1931;
“1931 Act improvement” means an improvement so carried out, being an improvement specified in Schedule 4 to this Act and begun on or after 31st July 1931 and before 1st November 1948;
“old improvement” means a 1923 Act improvement or a 1931 Act improvement;
“new improvement” means an improvement carried out on an agricultural holding, being an improvement specified in Schedule 5 to this Act begun on or after 1st November 1948.
33A Agreements as to compensation for improvements
Where the tenant has carried out an improvement—
(a) specified in Part II or III of Schedule 5 to this Act; and
(b) by executing work which the landlord was required, at the time the lease was entered into and by virtue of section 5(2)(a) of this Act, to execute in order to fulfil his obligations under the lease,
any term of the lease or of an agreement between the landlord and tenant made before the coming into force of this section which purports to provide that the amount of compensation payable to the tenant for the improvement is less than the amount of compensation to which the tenant is entitled under this Part of this Act for the improvement (or that no compensation is payable) shall not apply in relation to such part or proportion of the improvement as the landlord would have been so required to carry out in order to fulfil those obligations.
(1) Subject to subsections (2) to (4), (7) and (8) below, and to sections 36 and 39 to 42 of this Act, a tenant of an agricultural holding shall be entitled, on quitting the holding at the termination of the tenancy, to compensation from the landlord in respect of improvements carried out by the tenant.
(2) A tenant whose lease was entered into before 1st January 1921 shall not be entitled to compensation under this section for an improvement which he was required to carry out by the terms of his tenancy.
(3) A tenant shall not be entitled to compensation under this section for an old improvement carried out on land which, at the time the improvement was begun, was not a holding within the meaning of the Agricultural Holdings (Scotland) Act 1923 as originally enacted, or land to which provisions of that Act relating to compensation for improvements and disturbance were applied by section 33 of that Act.
(4) Nothing in this section shall prejudice the right of a tenant to any compensation to which he is entitled—
(a) in the case of an old improvement, under custom, agreement or otherwise;
(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
in lieu of any compensation provided by this section.
(5) Where a tenant has remained in an agricultural holding during two or more tenancies, he shall not be deprived of his right to compensation under subsection (1) above by reason only that the improvements were not carried out during the tenancy on the termination of which he quits the holding.
(6) Subject to section 36(4) of this Act, a tenant shall be entitled to compensation under this section in respect of the 1931 Act improvement specified in paragraph 28 of Schedule 4 to this Act, or the new improvement specified in paragraph 32 of Schedule 5 to this Act (laying down of temporary pasture), notwithstanding that the laying down or the leaving at the termination of the tenancy of temporary pasture was in contravention of the terms of the lease or of any agreement made by the tenant respecting the method of cropping the arable lands; but, in ascertaining the amount of the compensation, the Land Court shall take into account any injury to or deterioration of the holding due to the contravention (except insofar as the landlord may have recovered damages therefor).
(7) Where under an agreement in writing entered into before 1st January 1921 a tenant is entitled to compensation which is fair and reasonable having regard to the circumstances existing at the time of the making of the agreement, for an old improvement specified in Part III of Schedule 3 to this Act or in Part III of Schedule 4 to this Act, such compensation shall, as respects that improvement, be substituted for compensation under subsection (1) above.
(8) Compensation shall not be payable under this Part of this Act in respect of repairs of the kind specified in paragraph 29 of Schedule 3 to this Act or in paragraph 29 of Schedule 4 to this Act unless, before beginning to execute any such repairs, the tenant gave to the landlord notice in writing under paragraph (29) of Schedule 1 to the Agricultural Holdings (Scotland) Act 1923, or under paragraph (30) of Schedule 1 to the Small Landholders and Agricultural Holdings (Scotland) Act 1931, of his intention to execute the repairs, together with particulars thereof, and the landlord failed to exercise the right conferred on him by the said paragraph (29) or, as the case may be, the said paragraph (30) to execute the repairs himself within a reasonable time after receiving the notice.
34A Amnesty under the Land Reform (Scotland) Act 2016
A tenant of an agricultural holding is entitled to compensation under section 34 if Chapter 8 of Part 10 of the Land Reform (Scotland) Act 2016 applies.
(1) This section applies to compensation which is payable or has been paid to an outgoing tenant of an agricultural holding by the landlord under or in pursuance of this Act or the Agricultural Holdings (Scotland) Act 1923, the Small Landholders and Agricultural Holdings (Scotland) Act 1931, the Agriculture (Scotland) Act 1948 or the 1949 Act.
(2) Subject to subsection (3) below, any agreement made after 1st November 1948 between an incoming tenant and his landlord whereby the tenant undertakes to pay to the outgoing tenant or to refund to the landlord any compensation to which this section applies shall be null and void.
(3) Subsection (2) above shall not apply in the case of an improvement of a kind referred to in Part III of Schedule 5 to this Act, where the agreement is in writing and states a maximum amount which may be payable thereunder by the incoming tenant.
(4) Where, on entering into occupation of an agricultural holding, a tenant, with the consent in writing of the landlord pays to the outgoing tenant compensation to which this section applies—
(a) in respect of an old improvement, in pursuance of an agreement in writing made before 1st November 1948; or
(b) where subsection (3) above applies,
the incoming tenant shall be entitled, on quitting the holding, to claim compensation for the improvement or part in like manner, if at all, as the outgoing tenant would have been entitled if the outgoing tenant had remained tenant of the holding and quitted it at the time at which the tenant quits it.
(5) Where, in a case not falling within subsection (2) or (3) above, a tenant, on entering into occupation of an agricultural holding, paid to his landlord any amount in respect of the whole or part of a new improvement, he shall, subject to any agreement in writing between the landlord and the tenant, be entitled on quitting the holding to claim compensation in respect of the improvement or part in like manner, if at all, as he would have been entitled if he had been tenant of the holding at the time when the improvement was carried out and the improvement or part thereof had been carried out by him.
(1) Subject to subsections (2) to (4) below, the amount of any compensation payable to a tenant under this Part of this Act shall be such sum as fairly represents the value of the improvement to an incoming tenant.
(2) In the ascertainment of the amount of compensation payable in respect of an old improvement, there shall be taken into account any benefit which the landlord has given or allowed to the tenant (under the lease or otherwise) in consideration of the tenant carrying out the improvement.
(3) In the ascertainment of the amount of compensation payable under this section for a new improvement—
(a) there shall be taken into account any benefit which the landlord has agreed in writing to give the tenant in consideration of the tenant carrying out the improvement; and
(b) where a grant has been or will be made to the tenant in respect of the improvement, subject to the conditions of the grant—
(i) if either the landlord or tenant has not made or will not make a contribution towards the cost of the improvement, or neither of them has made or will make such a contribution, the grant shall not be taken into account;
(ii) in any other case, there shall be taken into account such proportion of the grant as equals the proportion of the contribution by the tenant towards the cost of the improvement as a proportion of the total of his contribution added to that of the landlord.
(4) In ascertaining the amount of any compensation payable under section 34(6) of this Act, the Land Court shall take into account any injury to or deterioration of the holding due to the contravention of the lease or agreement referred to in that subsection, except in so far as the landlord has recovered damages in respect of such injury or deterioration.
37 Consents necessary for compensation for some improvements.
(1) Compensation under this Part of this Act shall not be payable for—
(a) a 1923 Act improvement specified in Part I of Schedule 3 to this Act;
(b) a 1931 Act improvement specified in Part I of Schedule 4 to this Act; or
(c) a new improvement specified in Part I of Schedule 5 to this Act;
unless, before the improvement was carried out, the landlord consented to it in writing (whether unconditionally or upon terms ... agreed on between the parties).
(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(1) Subject to subsections (2) to (6) below, compensation under this Act shall not be payable for—
(a) a 1923 Act improvement specified in Part II of Schedule 3 to this Act;
(b) a 1931 Act improvement specified in Part II of Schedule 4 to this Act;
(c) a new improvement specified in Part II of Schedule 5 to this Act;
unless the tenant gave notice to the landlord in accordance with subsection (3) below of his intention to carry it out and of the manner in which he proposed to do so.
(2) Subsection (1) above shall not apply in the case of an improvement mentioned in subsection (1)(a) or (b) above, if the parties agreed by the lease or otherwise to dispense with the requirement for notice under subsection (3).
(2A) Subsection (1) above shall not apply in the case of an improvement mentioned in subsection (1)(c) above if the improvement was carried out by executing work which the landlord was required, at the time the lease was entered into and by virtue of section 5(2)(a) of this Act, to execute in order to fulfil his obligations under the lease.
(3) Notice shall be in accordance with this subsection if it is in writing and—
(a) in the case of an improvement mentioned in subsection (1)(a) above, it was notice under section 3 of the Agricultural Holdings (Scotland) Act 1923, given not more than 3 nor less than 2 months,
(b) in the case of an improvement mentioned in subsection (1)(b) above, it was notice under the said section 3, given not more than 6 nor less than 3 months,
(c) in the case of an improvement mentioned in subsection (1)(c) above, it was given not less than 3 months,
before the tenant began to carry out the improvement.
(4) In the case of an improvement mentioned in subsection (1)(a) or (b) above, compensation shall not be payable unless—
(a) the parties agreed on the terms as to compensation or otherwise on which the improvement was to be carried out;
(b) where no such agreement was made and the tenant did not withdraw the notice, the landlord failed to exercise his right under the said section 3 to carry out the improvement himself within a reasonable time; or
(c) in the case of an improvement mentioned in subsection (1)(b) above, where the landlord gave notice of objection and the matter was referred under section 28(2) of the Small Landholders and Agricultural Holdings (Scotland) Act 1931 for determination by the appropriate authority, that authority was satisfied that the improvement should be carried out and the improvement was carried out in accordance with any directions given by that authority as to the manner of so doing.
(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(6) In subsection (4) above, “the appropriate authority” means—
(a) in relation to the period before 4th September 1939, the Department of Agriculture for Scotland;
(b) in relation to the period starting on that day, the Secretary of State.
39 Compensation for Sch. 5, Pt. II, improvements conditional on approval of Land Court in certain cases.
(1) Subject to subsections (2) to (4) below, compensation under this Part of this Act shall not be payable in respect of a new improvement specified in Part II of Schedule 5 to this Act if, within one month after receiving notice under section 38(3) of this Act from the tenant of his intention to carry out the improvement, the landlord gives notice in writing to the tenant that he objects to the carrying out of the improvement or to the manner in which the tenant proposes to carry it out.
(2) Where notice of objection has been given under subsection (1) above, the tenant may apply to the Land Court for approval of the carrying out of the improvement, and on such application the Land Court may approve the carrying out of the improvement either—
(a) unconditionally, or
(b) upon such terms, as to reduction of the compensation which would otherwise be payable or as to other matters, as appears to them to be just,
or may withhold their approval.
(3) If, on an application under subsection (2) above, the Land Court grant their approval, the landlord may, within one month after receiving notice of the decision of the Land Court, serve notice in writing on the tenant undertaking to carry out the improvement himself.
(4) Where, on an application under subsection (2) above the Land Court grant their approval, then if either—
(a) no notice is served by the landlord under subsection (3) above, or
(b) such a notice is served but, on an application made by the tenant in that behalf, the Land Court determines that the landlord has failed to carry out the improvement within a reasonable time,
the tenant may carry out the improvement and shall be entitled to compensation under this Part of this Act in respect thereof as if notice of objection had not been given by the landlord, and any terms subject to which the approval was given shall have effect as if they were contained in an agreement in writing between the landlord and the tenant.
(1) This section applies to any agricultural holding which, by virtue of an agreement in writing made on or after 1st January 1898, is let or is to be treated as a market garden.
(2) This section also applies where—
(a) a holding was, on 1st January 1898 under a lease then current, in use or cultivation as a market garden with the knowledge of the landlord; and
(b) an improvement of a kind specified in Schedule 6 to this Act (other than such an alteration of a building as did not constitute an enlargement thereof) has been carried out on the holding; and
(c) the landlord did not, before the improvement was carried out, serve on the tenant a written notice dissenting from the carrying out of the improvement;
in relation to improvements whether carried out before or after 1st January 1898.
(3) In the application of Part IV of this Act to an agricultural holding to which this section applies, subject to subsections (5) and (7) below, the improvements specified in Schedule 6 to this Act shall be included in the improvements specified in Part III of each of Schedules 3, 4 and 5 to this Act.
(4) In the case of an agricultural holding to which this section applies—
(a) section 18 of this Act shall apply to every fixture or building affixed or erected by the tenant to or upon the holding or acquired by him since 31st December 1900 for the purposes of his trade or business as a market gardener;
(b) it shall be lawful for the tenant to remove all fruit trees and fruit bushes planted by him on the holding and not permanently set out, but if the tenant does not remove such fruit trees and fruit bushes before the termination of his tenancy they shall remain the property of the landlord and the tenant shall not be entitled to any compensation in respect thereof; and
(c) the right of an incoming tenant to claim compensation in respect of the whole or part of an improvement which he has purchased may be exercised although the landlord has not consented in writing to the purchase.
(5) Where a tenancy of a kind described in subsection (2) above was a tenancy from year to year, the compensation payable in respect of an improvement of a kind referred to in that subsection shall be such (if any) as could have been claimed if the 1949 Act had not been passed.
(6) Where the land to which this section applies consists of part only of an agricultural holding this section shall apply as if that part were a separate holding.
(7) Nothing in this section shall confer a right to compensation for the alteration of a building (not being an alteration constituting an enlargement of the building) where the alteration was begun before 1st November 1948.
41 Direction by Land Court that holding be treated as market garden.
(1) Where—
(a) the tenant of an agricultural holding intimates to the landlord in writing his desire to carry out on the holding or any part thereof an improvement specified in Schedule 6 to this Act;
(b) the landlord refuses, or within a reasonable time fails, to agree in writing that the holding, or that part thereof, shall be treated as a market garden;
(c) the tenant applies to the Land Court for a direction under this subsection; and
(d) the Land Court is satisfied that the holding or that part therof is suitable for the purposes of market gardening;
the Land Court may direct that section 40 of this Act shall apply to the holding or, as the case may be, part of a holding, either—
(i) in respect of all the improvements specified in Schedule 6 to this Act, or
(ii) in respect of some only of those improvements,
and that section shall apply accordingly as respects any improvement carried out after the date on which the direction is given.
(2) A direction under subsection (1) above may be given subject to such conditions, if any, for the protection of the landlord as the Land Court may think fit and, in particular, where the direction relates to part only of the holding, the direction may, on the application of the landlord, be given subject to the condition that the tenant shall consent to the division of the holding into two parts (one such part being the part to which the direction relates) to be held at rents agreed by the landlord and tenant or in default of agreement determined by the Land Court, but otherwise on the same terms and conditions (so far as applicable) as those on which the holding is held.
(3) Where a direction is given under subsection (1) above, if the tenancy is terminated—
(a) by notice of intention to quit given by the tenant, or
(b) by reason of the tenant’s apparent insolvency being constituted under section 16 of the Bankruptcy (Scotland) Act 2016,
the tenant shall not be entitled to compensation in respect of improvements specified in the direction unless he produces an offer which complies with subsection (4) below and the landlord fails to accept the offer within 3 months after the production thereof.
(4) An offer complies with this subsection if—
(a) it is in writing;
(b) it is made by a substantial and otherwise suitable person;
(c) it is produced by the tenant to the landlord not later than one month after the date of the notice of intention to quit or constitution of apparent insolvency as the case may be, or at such later date as may be agreed;
(d) it is an offer to accept a tenancy of the holding from the termination of the existing tenancy on the terms and conditions of the existing tenancy so far as applicable;
(e) it includes an offer, subject to subsection (5) below, to pay to the outgoing tenant all compensation payable under this Act or under the lease;
(f) it is open for acceptance for a period of 3 months from the date on which it is produced.
(5) If the landlord accepts an offer which complies with subsection (4) above the incoming tenant shall pay to the landlord on demand all sums payable to him by the outgoing tenant on the termination of the tenancy in respect of rent or breach of contract or otherwise in respect of the holding.
(6) Any amount paid by the incoming tenant under subsection (5) above may, subject to any agreement between the outgoing tenant and incoming tenant, be deducted by the incoming tenant from any compensation payable by him to the outgoing tenant.
(7) A tenancy created by the acceptance of an offer which complies with subsection (4) above shall be deemed for the purposes of section 13 of this Act not to be a new tenancy.