Agricultural Holdings (Scotland) Act 1991

[^key-ee2586999158df9611b091244cb4f9e9]: Words in s. 24(3) repealed (23.12.2016) by Land Reform (Scotland) Act 2016 (asp 18), s. 130(1), sch. 2 para. 15(3)(b) (with s. 128); S.S.I. 2016/365, reg. 2, sch. (with regs. 5-8)

[^key-52bd70bf7161344cce0ff7910f0974e0]: S. 25 repealed (23.12.2016) by Land Reform (Scotland) Act 2016 (asp 18), ss. 109(5), 130(1) (with s. 128); S.S.I. 2016/365, reg. 2, sch. (with regs. 5-8)

[^key-e866c5b855447538464744842b005395]: S. 55(1)(c) repealed (23.12.2016) by Land Reform (Scotland) Act 2016 (asp 18), s. 130(1), sch. 2 para. 15(4)(a) (with s. 128); S.S.I. 2016/365, reg. 2, sch. (with regs. 5-8)

[^key-b361c6168a8593e0f8c47395d9fa4608]: Words in s. 55(2)(b) repealed (23.12.2016) by Land Reform (Scotland) Act 2016 (asp 18), s. 130(1), sch. 2 para. 15(4)(b) (with s. 128); S.S.I. 2016/365, reg. 2, sch. (with regs. 5-8)

[^key-cef6e5292c2e882be02554f82d91b0de]: Words in s. 55(6) substituted (23.12.2016) by Land Reform (Scotland) Act 2016 (asp 18), s. 130(1), sch. 2 para. 15(4)(c)(i) (with s. 128); S.S.I. 2016/365, reg. 2, sch. (with regs. 5-8)

[^key-ad4b1d455720679d694a87079c5da3cc]: S. 55(6)(a) repealed (23.12.2016) by Land Reform (Scotland) Act 2016 (asp 18), s. 130(1), sch. 2 para. 15(4)(c)(ii) (with s. 128); S.S.I. 2016/365, reg. 2, sch. (with regs. 5-8)

[^key-a8c15e782c70bff7e5c05c316594d346]: Words in s. 55(6)(c) substituted (23.12.2016) by Land Reform (Scotland) Act 2016 (asp 18), s. 130(1), sch. 2 para. 15(4)(c)(iii) (with s. 128); S.S.I. 2016/365, reg. 2, sch. (with regs. 5-8)

[^key-31bb461aeb3ad25dd8be0b87f6858080]: S. 12B applied (with modifications) by 2003 asp 11, s. 21(2) (as substituted (23.12.2016) by Land Reform (Scotland) Act 2016 (asp 18), s. 130(1), sch. 2 para. 16(2) (with s. 128); S.S.I. 2016/365, reg. 2, sch. (with regs. 5-8))

[^key-7a738737a2440db0d362fff47e02fca3]: S. 12B applied (with modifications) by 2003 asp 11, s. 22(2) (as substituted (23.12.2016) by Land Reform (Scotland) Act 2016 (asp 18), s. 130(1), sch. 2 para. 16(3) (with s. 128); S.S.I. 2016/365, reg. 2, sch. (with regs. 5-8))

[^key-379cdee5d3bf2f53ee2c3811dee96775]: S. 12C(1)(2) applied (with modifications) by 2003 asp 11, s. 21(2) (as substituted (23.12.2016) by Land Reform (Scotland) Act 2016 (asp 18), s. 130(1), sch. 2 para. 16(2) (with s. 128); S.S.I. 2016/365, reg. 2, sch. (with regs. 5-8); S.S.I. 2016/365, reg. 2, sch. (with regs. 5-8))

[^key-4308ca7ef83c825376cda8ad1ac4dae2]: S. 12C(1)(2) applied (with modifications) by 2003 asp 11, s. 22(2) (as substituted (23.12.2016) by Land Reform (Scotland) Act 2016 (asp 18), s. 130(1), sch. 2 para. 16(3) (with s. 128); S.S.I. 2016/365, reg. 2, sch. (with regs. 5-8); S.S.I. 2016/365, reg. 2, sch. (with regs. 5-8))

[^key-115ab173d1eb4f638258af3e048ce5e2]: S. 12C(5) applied (with modifications) by 2003 asp 11, s. 22(2) (as substituted (23.12.2016) by Land Reform (Scotland) Act 2016 (asp 18), s. 130(1), sch. 2 para. 16(3) (with s. 128); S.S.I. 2016/365, reg. 2, sch. (with regs. 5-8))

[^key-d502cacd7932fd81e6e2a680172a5758]: S. 79(1A) inserted (1.4.2017) by The Crown Estate Transfer Scheme 2017 (S.I. 2017/524), art. 1(2), Sch. 5 para. 24

[^key-98ae58cb4e6f7157ffdd0947c2ccd1d3]: S. 84(4) applied (13.6.2017) by Land Reform (Scotland) Act 2016 (asp 18), ss. 114(4), 130(1) (with s. 128); S.S.I. 2017/20, reg. 2, sch.

[^key-d8438a07cbc6b5d21841e9653ade86e0]: S. 53 excluded (13.6.2017) by Land Reform (Scotland) Act 2016 (asp 18), ss. 117(2), 130(1) (with s. 128); S.S.I. 2017/20, reg. 2, sch.

[^key-bdeec7c5c8d444bef5927818ef5208d1]: S. 36 applied (13.6.2017) by Land Reform (Scotland) Act 2016 (asp 18), ss. 117(3), 130(1) (with s. 128); S.S.I. 2017/20, reg. 2, sch.

[^key-377d13bfb7b5d9d0381bd293403297f6]: S. 34A inserted (13.6.2017) by Land Reform (Scotland) Act 2016 (asp 18), ss. 113(1), 130(1) (with s. 128); S.S.I. 2017/20, reg. 2, sch.

[^key-7de5aee5be5ad67ceb9f64357fa6933c]: Words in s. 61(1) inserted (13.6.2017) by Land Reform (Scotland) Act 2016 (asp 18), ss. 118(1)(a)(i), 130(1) (with s. 128); S.S.I. 2017/20, reg. 2, sch.

[^key-db0ff76b3e3aa067d9d254cd6a7bfb1a]: Word in s. 61(2) repealed (13.6.2017) by Land Reform (Scotland) Act 2016 (asp 18), s. 118(1)(a)(ii)(A)130(1) (with s. 128); S.S.I. 2017/20, reg. 2, sch.

[^key-eb3ba6e3646626d6f2293553959ac64e]: Word in s. 61(2) repealed (13.6.2017) by Land Reform (Scotland) Act 2016 (asp 18), s. 118(1)(a)(ii)(B)130(1) (with s. 128); S.S.I. 2017/20, reg. 2, sch.

[^key-85c0d92a62bff9442b0e1afc0f393575]: Words in s. 61A(5) inserted (13.6.2017) by Land Reform (Scotland) Act 2016 (asp 18), ss. 118(1)(b), 130(1) (with s. 128); S.S.I. 2017/20, reg. 2, sch.

[^key-405e81f346cc615914fd5bebaedbb770]: Words in s. 61B inserted (13.6.2017) by Land Reform (Scotland) Act 2016 (asp 18), ss. 118(1)(c), 130(1) (with s. 128); S.S.I. 2017/20, reg. 2, sch.

[^M_C_13ef1b62-bd72-43f9-8e5a-fba102046d26]: S. 34A restricted (13.6.2017) by Land Reform (Scotland) Act 2016 (asp 18), ss. 115(1), 130(1) (with s. 128); S.S.I. 2017/20, reg. 2, sch.

[^key-c7f1e63b23b7ca8b80b3a97c08174098]: Word in s. 21(1) substituted (30.11.2017) by Land Reform (Scotland) Act 2016 (asp 18), s. 130(1), sch. 2 para. 3(2) (with s. 128); S.S.I. 2017/299, reg. 2, sch.

[^key-ea758bf6709b956488b7a6a33e3a1ec5]: Sch. 5 para. 17 substituted (10.1.2019) by The Agricultural Holdings (Scotland) Act 1991 (Variation of Schedule 5) Order 2019 (S.S.I. 2019/1), arts. 1(1), 2(2) (with art. 4)

[^key-fe1fe4e1052298c028f4a08768c54b9a]: Sch. 5 para. 22 substituted (10.1.2019) by The Agricultural Holdings (Scotland) Act 1991 (Variation of Schedule 5) Order 2019 (S.S.I. 2019/1), arts. 1(1), 2(3) (with art. 4)

[^key-47d8a47f5d38c7a9da3706397575ec8c]: Sch. 5 paras. 23A-23C inserted (10.1.2019) by The Agricultural Holdings (Scotland) Act 1991 (Variation of Schedule 5) Order 2019 (S.S.I. 2019/1), arts. 1(1), 2(4) (with art. 4)

[^key-33a5c9cb159336dd7fd428d504ed7b0b]: Sch. 5 para. 29 substituted (10.1.2019) by The Agricultural Holdings (Scotland) Act 1991 (Variation of Schedule 5) Order 2019 (S.S.I. 2019/1), arts. 1(1), 3(2) (with art. 4)

[^key-f35ea2910624ac2380111e3c499807d9]: Sch. 5 para. 29A inserted (10.1.2019) by The Agricultural Holdings (Scotland) Act 1991 (Variation of Schedule 5) Order 2019 (S.S.I. 2019/1), arts. 1(1), 3(3) (with art. 4)

[^key-037425bd8c0d90ce4641ba242228f252]: Sch. 5 para. 30 substituted (10.1.2019) by The Agricultural Holdings (Scotland) Act 1991 (Variation of Schedule 5) Order 2019 (S.S.I. 2019/1), arts. 1(1), 3(4) (with art. 4)

[^key-71d3209b034c28c062418bcb6ecb2415]: Sch. 11 paras. 48-53 repealed (S.) (28.2.2019) by The Environment, Food and Rural Affairs (Miscellaneous Amendments and Revocations) (Scotland) Regulations 2018 (S.S.I. 2018/391), reg. 1(1), sch. Pt. 1

[^key-d35aa54533904eda6058047198cc194b]: Sch. 11 para. 43 repealed (S.) (28.2.2019) by The Environment, Food and Rural Affairs (Miscellaneous Amendments and Revocations) (Scotland) Regulations 2018 (S.S.I. 2018/391), reg. 1(1), sch. Pt. 1

[^key-e1e4d0c277e2696d7279a7bb736f9fb1]: Sch. 11 para. 44 repealed (S.) (28.2.2019) by The Environment, Food and Rural Affairs (Miscellaneous Amendments and Revocations) (Scotland) Regulations 2018 (S.S.I. 2018/391), reg. 1(1), sch. Pt. 1

[^M_X_0f0592d3-b112-4187-b8b3-17584b7bf4f3]: Editorial note: The substitution of s. 13 and its cross-heading and the insertion of sch. 1A by the Land Reform (Scotland) Act 2016 (asp 18), s. 101(2)(3) (version dated 23.12.2016 on the timeline) has been brought into force only for the purpose of making regulations under paras. 2(4), 9(1) and 10(6) of sch. 1A. For s. 13 and its cross-heading as it otherwise remains in force, see the version dated 22.3.2011.

[^key-10200743c7f96507aabfc73cace37c9a]: Pt. 3A inserted (23.12.2016 for specified purposes, 28.2.2021 in so far as not already in force) by Land Reform (Scotland) Act 2016 (asp 18), ss. 110(2), 130(1) (with s. 128); S.S.I. 2016/365, reg. 2; S.S.I. 2020/428, reg. 2

[^key-c4ca455af7b95bf4e0af89575b2e721c]: Pt. 3A modified (28.2.2021) by The Agricultural Holdings (Relinquishment and Assignation) (Application to Relevant Partnerships) (Scotland) Regulations 2021 (S.S.I. 2021/106), regs. 1(1), 3

[^key-aa0078ad43e457bbe394d681c1044319]: Words in s. 21(1) inserted (28.2.2021) by Land Reform (Scotland) Act 2016 (asp 18), ss. 111(1), 130(1) (with s. 128); S.S.I. 2020/428, reg. 2

10A

• (1) A lease of an agricultural holding may be assigned by the tenant to any one of the persons mentioned in subsection (1A) if, following notice under subsection (2), the landlord consents to a proposed assignation.

• (1A) The persons referred to in subsection (1) are—

• (a) any person who would be, or would in any circumstances have been, entitled to succeed to the tenant's estate on intestacy by virtue of the Succession (Scotland) Act 1964,

• (b) a spouse or civil partner of a child of the tenant,

• (c) a spouse or civil partner of a grandchild of the tenant,

• (d) a spouse or civil partner of a brother or sister of the tenant,

• (e) a brother or sister of the tenant's spouse or civil partner,

• (f) a spouse or civil partner of such a brother or sister,

• (g) a child (including a step-child) of such a brother or sister,

• (h) a grandchild (including a step-grandchild) of such a brother or sister,

• (i) a step-child of the tenant,

• (j) a spouse or civil partner of such a step-child,

• (k) a descendant of such a step-child,

• (l) a step-brother or step-sister of the tenant,

• (m) a spouse or civil partner of such a step-brother or step-sister,

• (n) a descendant of such a step-brother or step-sister.

• (2) The tenant must give the landlord a notice in writing of any intention of the tenant to assign the lease; and the notice must include the particulars of the proposed assignee, the terms upon which the assignation is to be made and the date on which it is to take effect.

• (3) Subject to subsection (3A), the landlord may withhold consent to the proposed assignation if there are reasonable grounds for doing so; and, in particular the landlord may withhold consent if 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.

• (3A) Where the tenant proposes to assign the lease to a person who is a near relative of the tenant, the only grounds on which the landlord can withhold consent to the proposed assignation are the following—

• (a) that the person is not of good character,

• (b) that the person does not have sufficient resources to enable the person to farm the holding with reasonable efficiency,

• (c) subject to subsection (3B), that the person has neither sufficient training in agriculture nor sufficient experience in the farming of land to enable the person to farm the holding with reasonable efficiency.

• (3B) The ground of objection in subsection (3A)(c) does not apply where the person—

• (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.

• (4) Any such withholding of consent (and the grounds for withholding it) is to be intimated in writing to the tenant within 30 days of the giving of the notice under subsection (2); and, if no such intimation is made, the landlord is deemed to have consented to the proposed assignation.

• (5) Any term of a lease or of an agreement between the landlord and tenant which purports to provide that the lease of an agricultural holding may not be assigned under this section shall, in so far as it so purports, be null and void.

• (6) In this section and in sections 12A and 12B, “near relative”, in relation to a tenant of an agricultural holding, means—

• (a) a parent of the tenant,

• (b) a spouse or civil partner of the tenant,

• (c) a child of the tenant,

• (d) a spouse or civil partner of such a child,

• (e) a grandchild of the tenant,

• (f) a brother or sister of the tenant,

• (g) a spouse or civil partner of such a brother or sister,

• (h) a child of a brother or sister of the tenant,

• (i) a grandchild of a brother or sister of the tenant,

• (j) a brother or sister of the tenant's spouse or civil partner,

• (k) a spouse or civil partner of such a brother or sister,

• (l) a child of such a brother or sister,

• (m) a grandchild of such a brother or sister.

Tenant’s right to withhold rent

15A

• (1) Subsection (2) below shall apply to an order—

• (a) made under subsection (1)(b) of section 84 of the Agricultural Holdings (Scotland) Act 2003 (asp 11); and

• (b) which is in relation to a failure of the landlord of an agricultural holding to fulfil any obligation he has towards the tenant in respect of fixed equipment.

• (2) Where the landlord has failed—

• (a) in a material regard; and

• (b) as at the date specified under subsection (2) of that section,

to comply with an order to which this subsection applies, the tenant may apply to the Land Court for an order under subsection (3) below.

• (3) An order under this subsection may (either or both)—

• (a) authorise the tenant to carry out such work as the landlord would have to have carried out for the landlord to comply with the order to which subsection (2) above applies; and

• (b) authorise the tenant to withhold payment of the rent payable to the landlord in respect of the holding on the condition that the tenant shall consign to the Land Court the amount otherwise so payable.

• (4) The Land Court may, on the application of the tenant, from time to time release to the tenant any of the amount so consigned towards or in satisfaction of any reasonable costs incurred or to be incurred by the tenant for the purposes of or in connection with the carrying out of such work as is mentioned in paragraph (a) of subsection (3) above.

• (5) The Land Court, on the application of the landlord and having regard to—

• (a) whether any work mentioned in paragraph (a) of subsection (3) above remains to be carried out; and

• (b) any costs mentioned in subsection (4) above,

may terminate the order made under subsection (3) above if the Court consider that it would be not be appropriate for the order to remain in force.

• (6) Where the Land Court terminate the order made under subsection (3) above, the Court shall order such division between the landlord and tenant of the amount (or, where any of the amount has been released to the tenant, any remaining amount) consigned under subsection (3)(b) above as the Court consider to be equitable.

• (7) Any work carried out and authorised under subsection (3)(a) above shall be treated as having been carried out at the landlord’s expense in so far as the costs of the work have been or are to be satisfied by the release to the tenant of any amount consigned under subsection (3)(b) above.

• (8) Any right of the landlord—

• (a) to irritate the lease on the grounds of non-payment of rent; or

• (b) under section 20 or 22 of this Act in relation to non-payment of rent,

shall be unenforceable if the non-payment is in consequence of an authorisation under subsection (3)(b) above to withhold rent.

• (9) Any term of the lease or of any agreement between the landlord and tenant that purports to deprive the tenant of any right conferred by virtue of this section shall, in so far as it so purports, be null and void.

16A

• (1) The lease of an agricultural holding shall not be brought to an end, and accordingly the landlord shall not be entitled to bring proceedings to terminate the lease or to treat it as at an end, by reason only that the tenant is not or has not been resident on the agricultural holding.

• (2) Where there is a term in a lease of an agricultural holding which purports to require the tenant to reside on the holding, there shall, in place of that term, be deemed to be incorporated in the lease an undertaking by the tenant that he will, if he does not reside on the holding, ensure that a person who has the skills and experience necessary to farm the holding in accordance with the rules of good husbandry resides on the holding.

Consents for purposes of section 22.

Certificates of bad husbandry.

29A

• (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.

33A

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.

45A

• (1) Subject to subsection (2) below, the landlord of an agricultural holding shall be entitled to recover from the tenant, on his quitting the holding on termination of the tenancy, compensation where the landlord shows that the value of the holding has been reduced during the tenancy by the use, on or after the coming into force of this section, of the holding for a purpose which is not an agricultural purpose; and the amount of compensation payable shall be an amount equal to the reduction in the value of the holding.

• (2) Where there are trees on the holding which were planted—

• (a) by the tenant on or after the coming into force of this section; and

• (b) for future cropping,

the landlord or tenant shall be entitled to recover from the other, on the tenant quitting the holding on the termination of the tenancy, compensation calculated in accordance with subsections (3) and (4) below.

• (3) For the purposes of subsection (2) above, at the termination of the tenancy—

• (a) the trees shall be valued on the basis of their worth to a willing purchaser for future cropping; and

• (b) there shall be evaluated any loss of rent to the landlord which would be incurred by his retaining the trees until the likely date of cropping added to the cost to him of returning the land to agricultural use after cropping.

• (4) If the value reached under paragraph (a) of subsection (3) above is—

• (a) greater than that reached under paragraph (b) of that subsection, the tenant shall be entitled to the difference between the values as compensation;

• (b) less than that reached under paragraph (b) of that subsection, the landlord shall be entitled to the difference between the values as compensation.

• (5) Where the value of an agricultural holding has been increased during the tenancy by such use of the land or part of the land, or such change to the land, for a purpose that is not an agricultural purpose—

• (a) as occurred on or after the coming into force of this section; and

• (b) as had been permitted under section 40 or 41 of the Agricultural Holdings (Scotland) Act 2003 (asp 11),

the tenant shall, subject to subsections (6) and (7) below, be entitled, on quitting the holding on termination of the tenancy, to recover from the landlord such compensation as fairly represents the value of the use, change or carrying out of the activities to an incoming tenant.

• (6) In ascertaining the amount of compensation payable under subsection (5) above—

• (a) there shall be taken into account any benefit which the landlord has agreed in writing to give the tenant in consideration of the matters referred to in that subsection; and

• (b) where a grant has been or will be made to the tenant in respect of those matters, 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.

• (7) No compensation is payable under subsection (5) above if, owing to—

• (a) any of the matters referred to in that subsection, the land is unsuitable for use for agriculture by an incoming tenant; or

• (b) any use of fixed equipment in connection with any of those matters, the landlord would, at the commencement of an incoming tenant’s tenancy, be unable to fulfil his obligations under the lease as to fixed equipment,

in so far as those matters or, as the case may be, that use is attributable to those facts.

• (8) Where the tenant has remained in occupation of the holding during two or more tenancies, he shall not be deprived of his right to compensation under this section by reason only that the use of the land or change to the land did not occur during the tenancy on the termination of which he quits the holding.

61A

• (1) This section applies to any arbitration to which a matter is referred by the landlord and tenant under section 61(1) of this Act.

• (2) The agreement of the parties to refer the matter to arbitration shall have the effect of depriving each party of his right to—

• (a) have the matter heard (or any issue in relation to the matter determined) by the Land Court (other than on appeal); and

• (b) agree under section 61(1) of this Act to another method of resolving the matter.

• (3) It shall be for the landlord and tenant to agree whether the arbitration is conducted by—

• (a) a single arbiter; or

• (b) two arbiters (with or without an oversman),

and the arbiter or, as the case may be, each arbiter, may be appointed by the parties or by a person nominated by them.

• (4) The procedure to be followed at arbitration (including any matters to be taken into account by the arbiter and the matters to be contained in his award) shall, subject to subsection (5) below, be as the parties agree or, in the absence of such agreement, as the arbiter considers appropriate.

• (5) Any provision of this Act or of section 116 of the Land Reform (Scotland) Act 2016 that would apply to the Land Court as respects its consideration or determination of any matter had the matter not been referred to arbitration shall apply as respects the consideration or determination of the matter by arbitration.

• (6) Any party to the arbitration may appeal to the Land Court against the arbiter’s award on a question of law within 28 days of the award; and in an appeal under this subsection the Court may—

• (a) quash, confirm or vary the award or any part of it; and

• (b) where the Court quashes the award or any part of it—

• (i) remit the case to the arbiter for further procedure; and

• (ii) direct the arbiter on any question of law relevant to the case.

61B

Any term of—

• (a) a lease of an agricultural holding in relation to which this Act applies; or

• (b) any agreement in connection with such a lease (other than an agreement under section 61(1) of this Act),

that makes provision restricting any right of a landlord or tenant to apply to the Land Court under this Act or under section 116 of the Land Reform (Scotland) Act 2016 to have a matter determined by the Court shall, in so far as it makes that provision, be null and void.

Determination by Land Court of questions as to value of sheep stock.

Powers of entry and inspection.

(a) The holding or any agricultural unit of which it forms part is not a two-man unit;

Note: The following abbreviations are used in this Table—

Sums recovered under fire insurance policy.

Tenant’s right to withhold rent

Consent by Land Court or arbitration on notices to quit.

Termination of tenancies acquired by succession.

Appointment of valuer by Tenant Farming Commissioner

Powers of entry and inspection.

(a) The holding or any agricultural unit of which it forms part is not a viable unit;

Note: The following abbreviations are used in this Table—

Note: The following abbreviations are used in this Table—

Transfer of lease on intestacy

12A

• (1) This section applies where the person who gives notice to the landlord under section 11(2) or 12(1) is a near relative of the deceased.

• (2) The landlord may, within 1 month after the notice is given under section 11(2) or 12(1), give to the person a counter-notice intimating that the landlord objects to receiving the person as tenant under the lease.

• (3) The only grounds on which the landlord can object to receiving the person as tenant under the lease are the following—

• (a) that the person is not of good character,

• (b) that the person does not have sufficient resources to enable the person to farm the holding with reasonable efficiency,

• (c) subject to subsection (4), that the person has neither sufficient training in agriculture nor sufficient experience in the farming of land to enable the person to farm the holding with reasonable efficiency.

• (4) The ground of objection in subsection (3)(c) does not apply where the person—

• (a) is engaged in or will begin, before the expiry of the period of 6 months beginning with the date of the notice under section 11(2) or 12(1), 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.

• (5) If the landlord gives a counter-notice under subsection (2), the landlord may, within 1 month after the counter-notice is given, apply to the Land Court for an order—

• (a) in the case of a legatee, declaring the bequest to be null and void,

• (b) in the case of an acquirer, terminating the lease.

• (6) If, on the hearing of such an application, any ground of objection stated by the landlord is established to the satisfaction of the Land Court, it must make an order—

• (a) in the case of a legatee, declaring the bequest to be null and void,

• (b) in the case of an acquirer, terminating the lease with effect as from such term of Whitsunday or Martinmas as the court specifies.

• (7) In any other case, the Land Court must make an order declaring the legatee or, as the case may be, the acquirer to be the tenant under the lease and the lease to be binding on the landlord and on the legatee or acquirer, as landlord and tenant respectively, as from the date of the death of the deceased tenant.

• (8) Where the landlord does not apply to the Land Court under subsection (5)—

• (a) the counter-notice ceases to have effect on the expiry of the period of 1 month mentioned in that subsection, and

• (b) the lease is to be binding on the landlord and on the legatee or acquirer, as landlord and tenant respectively, as from the date of the death of the deceased tenant.

12B

• (1) This section applies where the person who gives notice to the landlord under section 11(2) or 12(1) is not a near relative of the deceased.

• (2) The landlord may, within 1 month after notice is given under section 11(2) or 12(1), give to the person a counter-notice intimating that the landlord objects to receiving the person as tenant under the lease and—

• (a) in the case of a legatee, declaring the bequest to be null and void,

• (b) in the case of an acquirer, terminating the lease with effect as from such term of Whitsunday or Martinmas as the landlord specifies, being a term at least 1 year but no more than 2 years from the date of the counter-notice.

• (3) If the landlord gives a counter-notice under subsection (2), the person may, within 1 month after the counter-notice is given, appeal to the Land Court.

• (4) If, on the hearing of such an appeal, any reasonable ground stated by the person—

• (a) in the case of a legatee, for not declaring the bequest to be null and void,

• (b) in the case of an acquirer, for not terminating the lease,

is established to the satisfaction of the Land Court, it must make an order quashing the counter-notice.

• (5) In any other case, the Land Court must make an order confirming the counter-notice.

12C

• (1) Pending any proceedings under section 12A or 12B, the legatee or acquirer is to have possession of the holding provided the executor in whom the lease is vested under section 14 of the Succession (Scotland) Act 1964 consents.

• (2) Subsection (1) does not apply where the Land Court, on the application of the landlord and on cause shown, directs otherwise.

• (3) In the case of a legatee, if the bequest is declared null and void—

• (a) under section 12A(6)(a),

• (b) by virtue of a counter-notice under section 12B(2), no appeal to the Land Court having been made under section 12B(3), or

• (c) by virtue of the Land Court confirming such a counter-notice on such an appeal,

the right to the lease is to be treated as intestate estate of the deceased tenant in accordance with Part 1 of the Succession (Scotland) Act 1964.

• (4) In the case of an acquirer, if the lease is terminated—

• (a) under section 12A(6)(b),

• (b) by virtue of a counter-notice under section 12B(2), no appeal to the Land Court having been made under section 12B(3), or

• (c) by virtue of the Land Court confirming such a counter-notice on such an appeal,

that termination is to be treated, for the purposes of Parts 4 and 5 of this Act (compensation), as termination of the acquirer's tenancy of the holding.

• (5) But nothing in this section is to entitle the acquirer to compensation for disturbance.

14A

• (1) This section applies where the landlord of an agricultural holding intends to carry out a relevant improvement.

• (2) A “relevant improvement” is an improvement specified in schedule 5 which is not intended to be carried out—

• (a) at the request of or in agreement with the tenant,

• (b) in pursuance of an undertaking given by landlord under section 39(3), or

• (c) in pursuance of a direction given by the Scottish Ministers under powers conferred on them by or under any enactment.

• (3) The landlord must give notice in writing to the tenant before carrying out the relevant improvement, unless section 14F applies.

• (4) A notice served in accordance with this section is a “landlord improvement notice”.

• (5) A landlord improvement notice must be dated and state the following—

• (a) the names and designations of the landlord and the tenant,

• (b) the name (if any) and the address of the holding or such other description of the holding as will identify it,

• (c) details of the intended improvement, including the manner of the improvement,

• (d) the landlord's reasons as to why the improvement is necessary to enable the tenant to fulfil the tenant's responsibilities to farm the holding in accordance with the rules of good husbandry.

14B

• (1) Where the landlord has given a landlord improvement notice under section 14A, the tenant may object to the improvement or to part of it by giving notice in writing to the landlord before the end of the period of 2 months beginning with the day on which the tenant received the landlord improvement notice.

• (2) A notice under subsection (1) must be dated and must state the tenant's reasons as to why the improvement is not necessary to enable the tenant to fulfil the tenant's responsibilities to farm the holding in accordance with the rules of good husbandry.

14C

• (1) Where the tenant has given notice of objection under section 14B the landlord may, before the end of the period of 2 months beginning with the day on which the landlord received the notice of objection, apply to the Land Court for approval of the relevant improvement.

• (2) The Land Court may—

• (a) approve the carrying out of the relevant improvement—

• (i) unconditionally, or

• (ii) upon such terms as appear to it to be appropriate, or

• (b) withhold its approval.

• (3) Before approving a relevant improvement, the Land Court must be satisfied that the improvement is necessary to enable the tenant to fulfil the tenant's responsibilities to farm the holding in accordance with the rules of good husbandry.

14D

• (1) This section applies where an improvement is to be carried out by the landlord—

• (a) at the request of or in agreement with the tenant,

• (b) in pursuance of an undertaking given by the landlord under section 39(3),

• (c) in pursuance of a direction given by the Scottish Ministers under powers conferred on them by or under any enactment, or

• (d) after the landlord has given a landlord improvement notice in accordance with section 14A and—

• (i) the tenant has not given notice of objection in accordance with section 14B, or

• (ii) the tenant has given such notice of objection but the Land Court has approved the improvement under section 14C(2)(a).

• (2) The landlord must give notice in writing to the tenant stating the period during which the landlord intends to carry out the improvement.

• (3) Unless the landlord and tenant agree otherwise, that period must not commence earlier than the expiry of 2 weeks beginning with the day on which the landlord gives notice under subsection (2).

• (4) Where the landlord has not begun to carry out an improvement, notice of which has been given under subsection (2), and there is a good reason for postponing the carrying out of the improvement, the landlord may give a new notice under subsection (2).

• (5) Subsection (6) applies where the landlord has begun to carry out an improvement, notice of which has been given under subsection (2), and there is a good reason for extending the period during which the improvement is to be carried out.

• (6) The landlord may, at any time before the expiry of the period stated in the notice under subsection (2), extend the period by giving notice in writing to the tenant stating the extended period during which the landlord intends to carry out the improvement.

• (7) See section 14F on emergency improvements.

14E

• (1) Subsection (2) applies where a landlord has carried out an improvement and—

• (a) the landlord did not give notice of the improvement to the tenant in accordance with section 14A,

• (b) the tenant objected to the improvement under section 14B and the Land Court has not approved the improvement under section 14C(2)(a),

• (c) the improvement is in breach of any decision of the Land Court under section 14C,

• (d) the improvement was not an emergency improvement as defined in section 14F.

• (2) Any such improvement is to be disregarded for the purposes of—

• (a) assessing the tenant's responsibilities—

• (i) in relation to farming the holding in accordance with the rules of good husbandry,

• (ii) in relation to fixed equipment under section 5(2)(b)(ii).

• (b) any subsequent rent review under schedule 1A.

14F

• (1) Where a landlord or a tenant considers that an emergency improvement is required, sections 14A(3) and 14D(2), (3), (5) and (6) do not apply.

• (2) In this section an “emergency improvement” means a relevant improvement that is necessary for the purposes of—

• (a) protecting public health from infectious diseases, contamination or other hazards which constitute a danger to human health,

• (b) preventing a danger or potential danger to public safety,

• (c) enabling the tenant to comply with the requirements of the Animal Health and Welfare (Scotland) Act 2006,

• (d) securing the provision of essential services including electricity and water supply services, or

• (e) remedying an accident or natural cause or force majeure which was exceptional and could not reasonably have been foreseen.

PART 3A — Relinquishing and assignation of holdings

CHAPTER 1 — Tenant's offer to relinquish holding

Application of Part and key terms

32A

• (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

• (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

32C

• (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

• (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

• (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

• (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.

.

Appointment of valuer

32G

• (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

• (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.

32I

• (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.

Valuer's assessment

32J

• (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.

32K

• (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).

Calculation of compensation

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 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.

Notice of assessment

Notice of assessment

32M

• (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.

Appeal against valuer's assessment

32N

• (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

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.

Withdrawal of notice of intention to relinquish

32P

• (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.

Landlord's response to tenant's offer to quit tenancy

32Q

• (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.

32R

• (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.

32S

• (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.

Payment of compensation ends tenancy

32T

• (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).

CHAPTER 2 — Assignation where landlord does not accept tenant's offer

32U

• (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

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.

.

CHAPTER 3 — Interpretation

32W

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).

Submission of questions of law for decision of sheriff.

Expenses and receipts.

Construction of references in other Acts to holdings as defined by earlier Acts.

SCHEDULE 1A

Rent review: service of rent review notice

1

• (1) The landlord of an agricultural holding to which this paragraph applies may initiate a review of the rent that is to be payable in respect of the holding by serving a notice in writing on the tenant of the holding.

• (2) The tenant of such an agricultural holding may initiate such a review by serving a notice in writing on the landlord of the holding.

• (3) A notice served under sub-paragraph (1) or (2) is a “rent review notice”.

• (4) This paragraph 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 in relation to the tenancy.

Form and content of rent review notice

2

• (1) A rent review notice must be dated and state the following—

• (a) the names and designations of the landlord and the tenant of the agricultural holding,

• (b) the name (if any) and the address of the holding or such other description of the holding as will identify it,