Agricultural Tenancies Act 1995 in Scotland
1995 c. 8 · Enacted 9 May 1995 · Extends to United Kingdom
Contents
- Farm business tenancies
- 1Meaning of “farm business tenancy”.
- 2Tenancies which cannot be farm business tenancies.
- 3Compliance with notice conditions in cases of surrender and re-grant.
- Exclusion of Agricultural Holdings Act 1986
- Termination of the tenancy
- Tenant’s right to remove fixtures and buildings
- 8Tenant’s right to remove fixtures and buildings.
- 8AReference of certain requests for consent or variation to arbitration: Wales
- 10Notice requiring statutory rent review.
- 11Review date where new tenancy of severed part of reversion.
- 14Interpretation of Part II.
- Tenant’s entitlement to compensation
- 15Meaning of “tenant’s improvement”.
- 16Tenant’s right to compensation for tenant’s improvement.
- Conditions of eligibility
- 17Consent of landlord as condition of compensation for tenant’s improvement.
- 18Conditions in relation to compensation for planning permission.
- Amount of compensation
- 21Amount of compensation for planning permission.
- Supplementary provisions with respect to compensation
- 23Successive tenancies.
- 25Compensation where reversionary estate in holding is severed.
- 26Extent to which compensation recoverable under agreements.
- 27Interpretation of Part III.
- Resolution of disputes
- 29Cases where right to refer claim to arbitration under section 28 does not apply.
- Miscellaneous
- 31Mortgages of agricultural land.
- 32Power of limited owners to give consents etc.
- 34Estimation of best rent for purposes of Acts and other instruments.
- Supplemental
- 36Service of notices.
- 36ARegulations
- 37Crown land.
- 40Consequential amendments.
- 41Short title, commencement and extent.
- Schedule: CONSEQUENTIAL AMENDMENTS
- 1Paragraph 1
- 2Paragraph 2
- 3Paragraph 3
- 4Paragraph 4
- 5Paragraph 5
- 6Paragraph 6
- 7Paragraph 7
- 8Paragraph 8
- The Reserve and Auxiliary Forces (Protection of Civil Interests) Act 1951 (c. 65)
- 9Paragraph 9
- 10Paragraph 10
- 11Paragraph 11
- 12Paragraph 12
- The Opencast Coal Act 1958 (c. 69)
- 13Paragraph 13
- 17Paragraph 17
- 18Paragraph 18
- 19Paragraph 19
- 20Paragraph 20
- The Agriculture (Miscellaneous Provisions) Act 1963 (c. 11)
- 21Paragraph 21
- 22Paragraph 22
- The Agriculture (Miscellaneous Provisions) Act 1968 (c. 34)
- 23Paragraph 23
- The Land Compensation Act 1973 (c. 26)
- 24Paragraph 24
- 25Paragraph 25
- 26Paragraph 26
- 27Paragraph 27
- 28Paragraph 28
- 29Paragraph 29
- 30Paragraph 30
- 31Paragraph 31
- 32Paragraph 32
- 34Paragraph 34
- 35Paragraph 35
- The Coal Mining Subsidence Act 1991 (c. 45)
- 36Paragraph 36
- 37Paragraph 37
1Meaning of “farm business tenancy”.C1
A tenancy is a “farm business tenancy” for the purposes of this Act if—
it meets the business conditions together with either the agriculture condition or the notice conditions, and
it is not a tenancy which, by virtue of section 2 of this Act, cannot be a farm business tenancy.
The business conditions are—
that all or part of the land comprised in the tenancy is farmed for the purposes of a trade or business, and
that, since the beginning of the tenancy, all or part of the land so comprised has been so farmed.
The agriculture condition is that, having regard to—
the terms of the tenancy,
the use of the land comprised in the tenancy,
the nature of any commercial activities carried on on that land, and
any other relevant circumstances,
the character of the tenancy is primarily or wholly agricultural.
The notice conditions are—
that, on or before the relevant day, the landlord and the tenant each gave the other a written notice—
identifying (by name or otherwise) the land to be comprised in the tenancy or proposed tenancy, and
containing a statement to the effect that the person giving the notice intends that the tenancy or proposed tenancy is to be, and remain, a farm business tenancy, and
that, at the beginning of the tenancy, having regard to the terms of the tenancy and any other relevant circumstances, the character of the tenancy was primarily or wholly agricultural.
In subsection (4) above “the relevant day” means whichever is the earlier of the following—
the day on which the parties enter into any instrument creating the tenancy, other than an agreement to enter into a tenancy on a future date, or
the beginning of the tenancy.
The written notice referred to in subsection (4) above must not be included in any instrument creating the tenancy.
If in any proceedings—
any question arises as to whether a tenancy was a farm business tenancy at any time, and
it is proved that all or part of the land comprised in the tenancy was farmed for the purposes of a trade or business at that time,
it shall be presumed, unless the contrary is proved, that all or part of the land so comprised has been so farmed since the beginning of the tenancy.
Any use of land in breach of the terms of the tenancy, any commercial activities carried on in breach of those terms, and any cessation of such activities in breach of those terms, shall be disregarded in determining whether at any time the tenancy meets the business conditions or the agriculture condition, unless the landlord or his predecessor in title has consented to the breach or the landlord has acquiesced in the breach.
2Tenancies which cannot be farm business tenancies.
A tenancy cannot be a farm business tenancy for the purposes of this Act if—
the tenancy begins before 1st September 1995, or
it is a tenancy of an agricultural holding beginning on or after that date with respect to which, by virtue of section 4 of this Act, the M1Agricultural Holdings Act 1986 applies.
In this section “agricultural holding” has the same meaning as in the M2Agricultural Holdings Act 1986.
3Compliance with notice conditions in cases of surrender and re-grant.
This section applies where—
a tenancy (“the new tenancy”) is granted to a person who, immediately before the grant, was the tenant under a farm business tenancy (“the old tenancy”) which met the notice conditions specified in section 1(4) of this Act,
the condition in subsection (2) below or the condition in subsection (3) below is met, and
except as respects the matters mentioned in subsections (2) and (3) below and matters consequential on them, the terms of the new tenancy are substantially the same as the terms of the old tenancy.
The first condition referred to in subsection (1)(b) above is that the land comprised in the new tenancy is the same as the land comprised in the old tenancy, apart from any changes in area which are small in relation to the size of the holding and do not affect the character of the holding.
The second condition referred to in subsection (1)(b) above is that the old tenancy and the new tenancy are both fixed term tenancies, but the term date under the new tenancy is earlier than the term date under the old tenancy.
Where this section applies, the new tenancy shall be taken for the purposes of this Act to meet the notice conditions specified in section 1(4) of this Act.
In subsection (3) above, “the term date”, in relation to a fixed term tenancy, means the date fixed for the expiry of the term.
8Tenant’s right to remove fixtures and buildings.
Subject to the provisions of this section—
any fixture (of whatever description) affixed, whether for the purposes of agriculture or not, to the holding by the tenant under a farm business tenancy, and
any building erected by him on the holding,
may be removed by the tenant at any time during the continuance of the tenancy or at any time after the termination of the tenancy when he remains in possession as tenant (whether or not under a new tenancy), and shall remain his property so long as he may remove it by virtue of this subsection.
Subsection (1) above shall not apply—
to a fixture affixed or a building erected in pursuance of some obligation,
to a fixture affixed or a building erected instead of some fixture or building belonging to the landlord,
to a fixture or building in respect of which the tenant has obtained compensation under section 16 of this Act or otherwise, or
to a fixture or building in respect of which the landlord has given his consent under section 17 of this Act on condition that the tenant agrees not to remove it and which the tenant has agreed not to remove.
In the removal of a fixture or building by virtue of subsection (1) above, the tenant shall not do any avoidable damage to the holding.
Immediately after removing a fixture or building by virtue of subsection (1) above, the tenant shall make good all damage to the holding that is occasioned by the removal.
This section applies to a fixture or building acquired by a tenant as it applies to a fixture or building affixed or erected by him.
Except as provided by subsection (2)(d) above, this section has effect notwithstanding any agreement or custom to the contrary.
No right to remove fixtures that subsists otherwise than by virtue of this section shall be exercisable by the tenant under a farm business tenancy.
8AReference of certain requests for consent or variation to arbitration: WalesF1
This section applies to a farm business tenancy where the land comprised in the tenancy is in Wales.
A tenant may, by notice in writing given to the landlord, refer to arbitration under this Act a request made by the tenant to the landlord where—
the request falls within subsection (3), and
no agreement has been reached with the landlord on the request.
A request falls within this subsection if—
it is a request for—
the landlord’s consent to a matter which under the terms of the tenancy requires such consent, or
a variation of the terms of the tenancy, and
it is made for the purposes of—
enabling the tenant to request or apply for relevant financial support, or
complying with a statutory duty applicable to the tenant.
Subsection (5) applies where the tenant has given notice under subsection (2) but an arbitrator has not been appointed by agreement before the end of the period of two months beginning with the day on which the notice was given.
The tenant or the landlord may apply to a professional authority for the appointment of an arbitrator by that authority, but once either party has made such an application the other may no longer do so.
An arbitrator, on a reference made under subsection (2), may—
determine that the landlord must comply with the request (either in full or in part),
determine that the landlord may refuse to comply with the request, or
make any other award or determination permitted by regulations.
The Welsh Ministers may by regulations make provision—
about conditions to be met before a reference may be made under subsection (2);
about the awards or determinations that may be made by an arbitrator, which may include making an order for a variation in the rent payable under the tenancy or for the payment of compensation or costs;
about the time at which, or the conditions subject to which, an award or determination may be expressed to take effect;
restricting a tenant’s ability to make subsequent references to arbitration where a reference to arbitration has already been made under subsection (2) in relation to the same tenancy.
In this section—
“relevant financial support” means financial support under—
- (a)
section 8 of the Agriculture (Wales) Act 2023 (“the 2023 Act”) (Welsh Ministers’ power to provide support),
- (b)
a scheme of the sort mentioned in section 9(7) of the 2023 Act (meaning of “third party scheme” for purposes of power to provide support),
- (c)
the basic payment scheme, as defined in section 16 of the 2023 Act (power to modify legislation governing the basic payment scheme),
- (d)
legislation relating to the financing, management and monitoring of the common agricultural policy, as defined in section 17 of the 2023 Act (power to modify legislation relating to the common agricultural policy),
- (e)
legislation relating to support for apiculture, as defined in section 18 of the 2023 Act (power to modify legislation relating to support for apiculture),
- (f)
legislation relating to support for rural development, as defined in section 19 of the 2023 Act (support for rural development), or
- (g)
section 22 of the 2023 Act (powers of Welsh Ministers to give financial assistance in exceptional market conditions);
- (a)
“statutory duty” means a duty imposed by or under—
- (a)
an Act of Parliament;
- (b)
an Act of Senedd Cymru or an Assembly Measure;
- (c)
retained direct EU legislation.
- (a)
10Notice requiring statutory rent review.
The landlord or tenant under a farm business tenancy in relation to which this Part of this Act applies may by notice in writing given to the other (in this Part of this Act referred to as a “statutory review notice”) require that the rent to be payable in respect of the holding as from the review date shall be referred to arbitration in accordance with this Act.
In this Part of this Act “the review date”, in relation to a statutory review notice, means a date which—
is specified in the notice, and
complies with subsections (3) to (6) below.
The review date must be at least twelve months but less than twenty-four months after the day on which the statutory review notice is given.
If the parties have agreed in writing that the rent is to be, or may be, varied as from a specified date or dates, or at specified intervals, the review date must be a date as from which the rent could be varied under the agreement.
If the parties have agreed in writing that the review date for the purposes of this Part of this Act is to be a specified date or dates, the review date must be that date or one of those dates.
If the parties have not agreed as mentioned in subsection (4) or (5) above, the review date—
must be an anniversary of the beginning of the tenancy or, where the landlord and the tenant have agreed in writing that the review date for the purposes of this Act is to be some other day of the year, that day of the year, and
must not fall before the end of the period of three years beginning with the latest of any of the following dates—
the beginning of the tenancy,
any date as from which there took effect a previous direction of an arbitrator as to the amount of the rent,
any date as from which there took effect a previous determination as to the amount of the rent made, otherwise than as arbitrator, by a person appointed under an agreement between the landlord and the tenant, and
any date as from which there took effect a previous agreement in writing between the landlord and the tenant, entered into since the grant of the tenancy, as to the amount of the rent.
11Review date where new tenancy of severed part of reversion.
This section applies in any case where a farm business tenancy (“the new tenancy”) arises between—
a person who immediately before the date of the beginning of the tenancy was entitled to a severed part of the reversionary estate in the land comprised in a farm business tenancy (“the original tenancy”) in which the land to which the new tenancy relates was then comprised, and
the person who immediately before that date was the tenant under the original tenancy,
and the rent payable under the new tenancy at its beginning represents merely the appropriate portion of the rent payable under the original tenancy immediately before the beginning of the new tenancy.
In any case where this section applies—
references to the beginning of the tenancy in subsection (6) of section 10 of this Act shall be taken to be references to the beginning of the original tenancy, and
references to rent in that subsection shall be taken to be references to the rent payable under the original tenancy,
until the first occasion following the beginning of the new tenancy on which any such direction, determination or agreement with respect to the rent of the new holding as is mentioned in that subsection takes effect.
14Interpretation of Part II.
In this Part of this Act, unless the context otherwise requires—
“the review date”, in relation to a statutory review notice, has the meaning given by section 10(2) of this Act;
“statutory review notice” has the meaning given by section 10(1) of this Act.
15Meaning of “tenant’s improvement”.
For the purposes of this Part of this Act a “tenant’s improvement”, in relation to any farm business tenancy, means—
any physical improvement which is made on the holding by the tenant by his own effort or wholly or partly at his own expense, or
any intangible advantage which—
is obtained for the holding by the tenant by his own effort or wholly or partly at his own expense, and
becomes attached to the holding,
and references to the provision of a tenant’s improvement are references to the making by the tenant of any physical improvement falling within paragraph (a) above or the obtaining by the tenant of any intangible advantage falling within paragraph (b) above.
16Tenant’s right to compensation for tenant’s improvement.
The tenant under a farm business tenancy shall, subject to the provisions of this Part of this Act, be entitled on the termination of the tenancy, on quitting the holding, to obtain from his landlord compensation in respect of any tenant’s improvement.
A tenant shall not be entitled to compensation under this section in respect of—
any physical improvement which is removed from the holding, or
any intangible advantage which does not remain attached to the holding.
Section 13 of, and Schedule 1 to, the M1Agriculture Act 1986 (compensation to outgoing tenants for milk quota) shall not apply in relation to a farm business tenancy.
17Consent of landlord as condition of compensation for tenant’s improvement.
A tenant shall not be entitled to compensation under section 16 of this Act in respect of any tenant’s improvement unless the landlord has given his consent in writing to the provision of the tenant’s improvement.
Any such consent may be given in the instrument creating the tenancy or elsewhere.
Any such consent may be given either unconditionally or on condition that the tenant agrees to a specified variation in the terms of the tenancy.
The variation referred to in subsection (3) above must be related to the tenant’s improvement in question.
This section does not apply in any case where the tenant’s improvement consists of planning permission.
18Conditions in relation to compensation for planning permission.
A tenant shall not be entitled to compensation under section 16 of this Act in respect of a tenant’s improvement which consists of planning permission unless—
the landlord has given his consent in writing to the making of the application for planning permission,
that consent is expressed to be given for the purpose—
of enabling a specified physical improvement falling within paragraph (a) of section 15 of this Act lawfully to be provided by the tenant, or
of enabling the tenant lawfully to effect a specified change of use, and
on the termination of the tenancy, the specified physical improvement has not been completed or the specified change of use has not been effected.
Any such consent may be given either unconditionally or on condition that the tenant agrees to a specified variation in the terms of the tenancy.
The variation referred to in subsection (2) above must be related to the physical improvement or change of use in question.
21Amount of compensation for planning permission.
The amount of compensation payable to the tenant under section 16 of this Act in respect of a tenant’s improvement which consists of planning permission shall be an amount equal to the increase attributable to the fact that the relevant development is authorised by the planning permission in the value of the holding at the termination of the tenancy as land comprised in a tenancy.
In subsection (1) above, “the relevant development” means the physical improvement or change of use specified in the landlord’s consent under section 18 of this Act in accordance with subsection (1)(b) of that section.
Where the landlord and the tenant have entered into an agreement in writing whereby any benefit is given or allowed to the tenant in consideration of the obtaining of planning permission by the tenant, the amount of compensation otherwise payable in respect of that permission shall be reduced by the proportion which the value of the benefit bears to the amount of the total cost of obtaining the permission.
23Successive tenancies.
Where the tenant under a farm business tenancy has remained in the holding during two or more such tenancies, he shall not be deprived of his right to compensation under section 16 of this Act by reason only that any tenant’s improvement was provided during a tenancy other than the one at the termination of which he quits the holding.
The landlord and tenant under a farm business tenancy may agree that the tenant is to be entitled to compensation under section 16 of this Act on the termination of the tenancy even though at that termination the tenant remains in the holding under a new tenancy.
Where the landlord and the tenant have agreed as mentioned in subsection (2) above in relation to any tenancy (“the earlier tenancy”), the tenant shall not be entitled to compensation at the end of any subsequent tenancy in respect of any tenant’s improvement provided during the earlier tenancy in relation to the land comprised in the earlier tenancy.
25Compensation where reversionary estate in holding is severed.
Where the reversionary estate in the holding comprised in a farm business tenancy is for the time being vested in more than one person in several parts, the tenant shall be entitled, on quitting the entire holding, to require that any compensation payable to him under section 16 of this Act shall be determined as if the reversionary estate were not so severed.
Where subsection (1) applies, the arbitrator shall, where necessary, apportion the amount awarded between the persons who for the purposes of this Part of this Act together constitute the landlord of the holding, and any additional costs of the award caused by the apportionment shall be directed by the arbitrator to be paid by those persons in such proportions as he shall determine.
26Extent to which compensation recoverable under agreements.
In any case for which apart from this section the provisions of this Part of this Act provide for compensation, a tenant shall be entitled to compensation in accordance with those provisions and not otherwise, and shall be so entitled notwithstanding any agreement to the contrary.
Nothing in the provisions of this Part of this Act, apart from this section, shall be construed as disentitling a tenant to compensation in any case for which those provisions do not provide for compensation.
27Interpretation of Part III.
In this Part of this Act, unless the context otherwise requires—
“planning permission” has the meaning given by section 336(1) of the M1Town and Country Planning Act 1990;
“tenant’s improvement”, and references to the provision of such an improvement, have the meaning given by section 15 of this Act.
29Cases where right to refer claim to arbitration under section 28 does not apply.
Section 28 of this Act does not apply in relation to any dispute if—
the tenancy is created by an instrument which includes provision for disputes to be resolved by any person other than—
the landlord or the tenant, or
a third party appointed by either of them without the consent or concurrence of the other, and
either of the following has occurred—
the landlord and the tenant have jointly referred the dispute to the third party under the provision, or
the landlord or the tenant has referred the dispute to the third party under the provision and notified the other in writing of the making of the reference, the period of four weeks beginning with the date on which the other was so notified has expired and the other has not given a notice under section 28(2) of this Act in relation to the dispute before the end of that period.
For the purposes of subsection (1) above, a term of the tenancy does not provide for disputes to be “resolved” by any person unless that person (whether or not acting as arbitrator) is enabled under the terms of the tenancy to give a decision which is binding in law on both parties.
31Mortgages of agricultural land.
Section 99 of the M1Law of Property Act 1925 (leasing powers of mortgagor and mortgagee in possession) shall be amended in accordance with subsections (2) and (3) below.
At the beginning of subsection (13), there shall be inserted “ Subject to subsection (13A) below, ”.
After that subsection, there shall be inserted—
“(13A)Subsection (13) of this section—
(a)shall not enable the application of any provision of this section to be excluded or restricted in relation to any mortgage of agricultural land made after 1st March 1948 but before 1st September 1995, and
(b)shall not enable the power to grant a lease of an agricultural holding to which, by virtue of section 4 of the Agricultural Tenancies Act 1995, the Agricultural Holdings Act 1986 will apply, to be excluded or restricted in relation to any mortgage of agricultural land made on or after 1st September 1995.
(13B)In subsection (13A) of this section—
“agricultural holding” has the same meaning as in the Agricultural Holdings Act 1986; and
“agricultural land” has the same meaning as in the Agriculture Act 1947.”
Paragraph 12 of Schedule 14 to the Agricultural Holdings Act 1986 (which excludes the application of subsection (13) of section 99 of the M2Law of Property Act 1925 in relation to a mortgage of agricultural land and is superseded by the amendments made by subsections (1) to (3) above) shall cease to have effect.
32Power of limited owners to give consents etc.
The landlord under a farm business tenancy, whatever his estate or interest in the holding, may, for the purposes of this Act, give any consent, make any agreement or do or have done to him any other act which he might give, make, do or have done to him if he were owner in fee simple or, if his interest is an interest in a leasehold, were absolutely entitled to that leasehold.
34Estimation of best rent for purposes of Acts and other instruments.
In estimating the best rent or reservation in the nature of rent of land comprised in a farm business tenancy for the purposes of a relevant instrument, it shall not be necessary to take into account against the tenant any increase in the value of that land arising from any tenant’s improvements.
In subsection (1) above—
“a relevant instrument” means any Act of Parliament, deed or other instrument which authorises a lease to be made on the condition that the best rent or reservation in the nature of rent is reserved;
“tenant’s improvement” has the meaning given by section 15 of this Act.
36Service of notices.
This section applies to any notice or other document required or authorised to be given under this Act.
A notice or other document to which this section applies is duly given to a person if—
it is delivered to him,
it is left at his proper address, or
it is given to him in a manner authorised by a written agreement made, at any time before the giving of the notice, between him and the person giving the notice.
A notice or other document to which this section applies is not duly given to a person if its text is transmitted to him by facsimile or other electronic means otherwise than by virtue of subsection (2)(c) above.
Where a notice or other document to which this section applies is to be given to a body corporate, the notice or document is duly given if it is given to the secretary or clerk of that body.
Where—
a notice or other document to which this section applies is to be given to a landlord under a farm business tenancy and an agent or servant of his is responsible for the control of the management of the holding, or
such a document is to be given to a tenant under a farm business tenancy and an agent or servant of his is responsible for the carrying on of a business on the holding,
the notice or document is duly given if it is given to that agent or servant.
For the purposes of this section, the proper address of any person to whom a notice or other document to which this section applies is to be given is—
in the case of the secretary or clerk of a body corporate, the registered or principal office of that body, and
in any other case, the last known address of the person in question.
Unless or until the tenant under a farm business tenancy has received—
notice that the person who before that time was entitled to receive the rents and profits of the holding (“the original landlord”) has ceased to be so entitled, and
notice of the name and address of the person who has become entitled to receive the rents and profits,
any notice or other document given to the original landlord by the tenant shall be deemed for the purposes of this Act to have been given to the landlord under the tenancy.
36ARegulationsF1
A power to make regulations under this Act is exercisable by statutory instrument.
The Welsh Ministers’ power to make regulations under section 8A(7) includes power to make different provision for different purposes.
A statutory instrument containing regulations made under section 8A(7) is subject to annulment in pursuance of a resolution of Senedd Cymru.
37Crown land.
This Act shall apply in relation to land in which there subsists, or has at any material time subsisted, a Crown interest as it applies in relation to land in which no such interest subsists or has ever subsisted.
For the purposes of this Act—
where an interest belongs to Her Majesty in right of the Crown and forms part of the Crown Estate, the Crown Estate Commissioners shall be treated as the owner of the interest,
where an interest belongs to Her Majesty in right of the Crown and does not form part of the Crown Estate, the government department having the management of the land or, if there is no such department, such person as Her Majesty may appoint in writing under the Royal Sign Manual shall be treated as the owner of the interest,
where an interest belongs to Her Majesty in right of the Duchy of Lancaster, the Chancellor of the Duchy shall be treated as the owner of the interest,
where an interest belongs to a government department or is held in trust for Her Majesty for the purposes of a government department, that department shall be treated as the owner of the interest, and
where an interest belongs to the Duchy of Cornwall, such person as the Duke of Cornwall or the possessor for the time being of the Duchy of Cornwall appoints shall be treated as the owner of the interest and, in the case where the interest is that of landlord, may do any act or thing which a landlord is authorised or required to do under this Act.
If any question arises as to who is to be treated as the owner of a Crown interest, that question shall be referred to the Treasury, whose decision shall be final.
In subsections (1) and (3) above “Crown interest” means an interest which belongs to Her Majesty in right of the Crown or of the Duchy of Lancaster or to the Duchy of Cornwall, or to a government department, or which is held in trust for Her Majesty for the purposes of a government department.
Any compensation payable under section 16 of this Act by the Chancellor of the Duchy of Lancaster may be raised and paid under section 25 of the M1Duchy of Lancaster Act 1817 (application of monies) as an expense incurred in improvement of land belonging to Her Majesty in right of the Duchy.
In the case of land belonging to the Duchy of Cornwall, the purposes authorised by section 8 of the M2Duchy of Cornwall Management Act 1863 (application of monies) for the advancement of parts of such gross sums as are there mentioned shall include the payment of compensation under section 16 of this Act.
Nothing in subsection (6) above shall be taken as prejudicing the operation of the M3Duchy of Cornwall Management Act 1982.
40Consequential amendments.
The Schedule to this Act (which contains consequential amendments) shall have effect.
41Short title, commencement and extent.
This Act may be cited as the Agricultural Tenancies Act 1995.
This Act shall come into force on 1st September 1995.
Subject to subsection (4) below, this Act extends to England and Wales only.
The amendment by a provision of the Schedule to this Act of an enactment which extends to Scotland or Northern Ireland also extends there, except that paragraph 9 of the Schedule does not extend to Northern Ireland.
1
Section 47 of the Small Holdings and Allotments Act 1908 (compensation for improvements) shall be amended as follows.
In subsection (1), after “to any tenant” there shall be inserted “ otherwise than under a farm business tenancy ”.
In subsection (2), after “small holdings or allotments” there shall be inserted “ otherwise than under a farm business tenancy ”.
In subsection (3), after “if” there shall be inserted “ he is not a tenant under a farm business tenancy and ”.
In subsection (4), after “allotment” there shall be inserted “ who is not a tenant under a farm business tenancy ”.
After that subsection, there shall be inserted—
“(5)In this section, “farm business tenancy” has the same meaning as in the Agricultural Tenancies Act 1995.”
2
In section 4(1) of the Law of Distress Amendment Act 1908 (exclusion of certain goods), for “to which that section applies” there shall be substituted “ on land comprised in a tenancy to which that Act applies ”.
3
In section 3(7) of the Allotments Act 1922 (provision as to cottage holdings and certain allotments), after “landlord” there shall be inserted “ otherwise than under a farm business tenancy (within the meaning of the Agricultural Tenancies Act 1995) ”.
4
In section 6(1) of that Act (assessment and recovery of compensation), after “contract of tenancy” there shall be inserted “ (not being a farm business tenancy within the meaning of the Agricultural Tenancies Act 1995) ”.
5
In section 17(1) of the Landlord and Tenant Act 1927 (holdings to which Part I applies), for the words from “not being” to the end there is substituted
“not being—
(a)agricultural holdings within the meaning of the Agricultural Holdings Act 1986 held under leases in relation to which that Act applies, or
(b)holdings held under farm business tenancies within the meaning of the Agricultural Tenancies Act 1995.”
6
In section 19(4) of that Act (provisions as to covenants not to assign etc. without licence or consent), after “the Agricultural Holdings Act 1986” there shall be inserted “ which are leases in relation to which that Act applies, or to farm business tenancies within the meaning of the Agricultural Tenancies Act 1995 ”.
7
In section 5(7) of the Agricultural Credits Act 1928 (agricultural charges on farming stock and assets) in the definition of “other agricultural assets”, after “otherwise” there shall be inserted “ a tenant’s right to compensation under section 16 of the Agricultural Tenancies Act 1995, ”.
8
In section 7(1) of the Leasehold Property (Repairs) Act 1938 (interpretation), at the end there shall be added “ which is a lease in relation to which that Act applies and not being a farm business tenancy within the meaning of the Agricultural Tenancies Act 1995 ”.
9
Section 27 of the Reserve and Auxiliary Forces (Protection of Civil Interests) Act 1951 (renewal of tenancy expiring during period of service or within two months thereafter) shall be amended as follows.
In subsection (1), for the words from “are an agricultural holding” onwards there shall be substituted—
“(a)are an agricultural holding (within the meaning of the Agricultural Holdings Act 1986) held under a tenancy in relation to which that Act applies,
(b)are a holding (other than a holding excepted from this provision) held under a farm business tenancy, or
(c)consist of or comprise premises (other than premises excepted from this provision) licensed for the sale of intoxicating liquor for consumption on the premises.”
In subsection (5), after paragraph (b) there shall be inserted—
“(bb)the expressions “farm business tenancy” and “holding”, in relation to such a tenancy, have the same meaning as in the Agricultural Tenancies Act 1995;”.
After that subsection, there shall be inserted—
“(5A)In paragraph (b) of the proviso to subsection (1) of this section the reference to a holding excepted from the provision is a reference to a holding held under a farm business tenancy in which there is comprised a dwelling-house occupied by the person responsible for the control (whether as tenant or servant or agent of the tenant) of the management of the holding.”
In subsection (6), for the words from the beginning to “liquor” there shall be substituted “ In paragraph (c) of the proviso to subsection (1) of this section, the reference to premises excepted from the provision ”.
10
In section 43(1) of the Landlord and Tenant Act 1954 (tenancies excluded from Part II)—
in paragraph (a), for the words from “or a tenancy” to “1986” there shall be substituted “ which is a tenancy in relation to which the Agricultural Holdings Act 1986 applies or a tenancy which would be a tenancy of an agricultural holding in relation to which that Act applied if subsection (3) of section 2 of that Act ”, and
after that paragraph there shall be inserted—
“(aa)to a farm business tenancy;”.
11
In section 51(1) of that Act (extension of Leasehold Property (Repairs) Act 1938), for paragraph (c) there shall be substituted—
“(c)that the tenancy is neither a tenancy of an agricultural holding in relation to which the Agricultural Holdings Act 1986 applies nor a farm business tenancy”.
12
In section 69(1) of that Act (interpretation), after the definition of “development corporation” there shall be inserted—
““farm business tenancy” has the same meaning as in the Agricultural Tenancies Act 1995;”.
13
Section 14 of the Opencast Coal Act 1958 (provisions as to agricultural tenancies in England and Wales) shall be amended as follows.
In subsection (1)(b), for “or part of an agricultural holding” there shall be substituted “ held under a tenancy in relation to which the Agricultural Holdings Act 1986 (in this Act referred to as “the Act of 1986”) applies or part of such an agricultural holding ”.
In subsection (2), for the words from “Agricultural” to “of 1986)” there shall be substituted “ Act of 1986 ”.
17
Section 26 of that Act (compensation for short-term improvements and related matters) shall be amended as follows.
In subsection (1), after “agricultural land” there shall be inserted “ and was not comprised in a farm business tenancy ”.
In subsection (6), after “Scotland” there shall be inserted—
“(za)in subsection (1) of this section, the words “and was not comprised in a farm business tenancy” shall be omitted;”.
18
Section 28 of that Act (special provision as to market gardens) shall be amended as follows.
In subsection (1), after “market garden” there shall be inserted “ and was not comprised in a farm business tenancy. ”
In subsection (6), after “Scotland” there shall be inserted “ in subsection (1) of this section, the words “and was not comprised in a farm business tenancy” shall be omitted; and ”.
19
In section 51 of that Act (interpretation) in subsection (1)—
after the definition of “the Act of 1986” there shall be inserted—
““the Act of 1995” means the Agricultural Tenancies Act 1995;” and
after the definition of “emergency powers” there shall be inserted—
““farm business tenancy” has the same meaning as in the Act of 1995;”.
20
Schedule 7 to that Act (adjustments between landlords and tenants and in respect of mortgages and mining leases and orders) shall be amended as follows.
After paragraph 1, there shall be inserted—
“1A(1)The provisions of this paragraph shall have effect where—
(a)paragraphs (a) and (b) of subsection (1) of section 25A of this Act apply, and
(b)the farm business tenancy at the end of which the tenant could have claimed compensation for tenant’s improvements terminates on or after the date of entry, but before the end of the period of occupation, without being succeeded by another such subsequent tenancy.
(2)In the circumstances specified in sub-paragraph (1) of this paragraph, the provisions of Part III of the Act of 1995—
(a)shall apply, in relation to the tenancy mentioned in that sub-paragraph, as if, at the termination of that tenancy, the land in question were in the state in which it was immediately before the date of entry, and
(b)if the tenant under that tenancy quitted the holding before the termination of his tenancy, shall so apply as if he had quitted the holding on the termination of his tenancy.
(3)In sub-paragraph (2) of this paragraph, “holding”, in relation to a farm business tenancy, and “termination”, in relation to a tenancy, have the same meaning as in the Act of 1995.”
In paragraph 2, in sub-paragraph (1), after “agricultural holding” there shall be inserted “ held under a tenancy in relation to which the Act of 1986 applies ”.
After that paragraph there shall be inserted—
“2A(1)The provisions of this paragraph shall have effect where land comprised in a farm business tenancy is comprised in a compulsory rights order (whether any other land is comprised in the holding, or comprised in the order, or not), and—
(a)before the date of entry there had been provided in relation to the land in question tenant’s improvements (in this paragraph referred to as “the former tenant”s improvements’) in respect of which, immediately before that date, the tenant had a prospective right to compensation under section 16 of the Act of 1995 on quitting the holding on the termination of the tenancy, and
(b)at the end of the period of occupation the circumstances are such that Part III of that Act would have applied as mentioned in subsections (3) and (4) of section 25A of this Act, but for the fact that the benefit of the former tenant’s improvements has been replaced, on the restoration of the land, by other improvements (in this paragraph referred to as “the new improvements”) of comparable benefit to the land.
(2)In the circumstances specified in sub-paragraph (1) of this paragraph, Part III of the Act of 1995 shall have effect in relation to the new improvements as if those improvements were tenant’s improvements.
(3)Subsections (2) and (6) of section 25A of this Act shall apply for the purposes of this paragraph as they apply for the purposes of that section.”
After paragraph 3 there shall be inserted—
“3AWhere by virtue of section 25A of this Act a tenant is entitled to compensation for tenant’s improvements as mentioned in that section and—
(a)after the end of the period of occupation expenses are incurred in replacing the benefit of the tenant’s improvements by other improvements of comparable benefit to the land, and
(b)the person incurring those expenses (whether he is the landlord or not) is entitled to compensation in respect of those expenses under section 22 of this Act,
section 13 of the Act of 1995 shall apply as if the works in respect of which those expenses are incurred were not tenant’s improvements, if apart from this paragraph they would constitute such improvements.”
At the end of paragraph 4, there shall be added—
“(7)In this paragraph “agricultural holding” does not include an agricultural holding held under a farm business tenancy.”
After that paragraph there shall be inserted—
“4A(1)The provisions of this paragraph shall apply where—
(a)immediately before the operative date of a compulsory rights order, any of the land comprised in the order is subject to a farm business tenancy, and
(b)that tenancy continues until after the end of the period of occupation.
(2)The landlord or tenant under the tenancy may, by notice in writing served on his tenant or landlord, demand a reference to arbitration of the question whether any of the terms and conditions of the tenancy (including any term or condition relating to rent) should be varied in consequence of any change in the state of the land resulting from the occupation or use of the land in the exercise of rights conferred by the order; and subsection (3) of section 28 of the Act of 1995 shall apply in relation to a notice under this sub-paragraph as it applies in relation to a notice under subsection (2) of that section.
(3)On a reference by virtue of this paragraph, the arbitrator shall determine what variations (if any) should be made in the terms and conditions of the tenancy, and the date (not being earlier than the end of the period of occupation) from which any such variations are to take effect or to be treated as having taken effect; and as from that date the tenancy shall have effect, or, as the case may be, shall be treated as having had effect, subject to any variations determined by the arbitrator under this paragraph.
(4)The provisions of this paragraph shall not affect any right of the landlord or the tenant, or the jurisdiction of the arbitrator, under Part II of the Act of 1995; but where—
(a)there is a reference by virtue of this paragraph and a reference under Part II of that Act in respect of the same tenancy, and
(b)it appears to the arbitrator that the reference under Part II of that Act relates wholly or mainly to the consequences of the occupation or use of the land in the exercise of rights conferred by the order,
he may direct that proceedings on the two references shall be taken concurrently.”
In paragraph 5(1), after “agricultural holding” there shall be inserted “held under a tenancy in relation to which the Act of 1986 applies”.
In paragraph 6—
in sub-paragraph (1), for “an agricultural holding” there shall be substituted
“—
(a)an agricultural holding held under a tenancy in relation to which the Act of 1986 applies, or
(b)a holding under a farm business tenancy,”; and
after sub-paragraph (2) there shall be added—
“(2A)In sub-paragraph (1) of this paragraph, “holding”, in relation to a farm business tenancy, has the same meaning as in the Act of 1995.”
In paragraph 7—
after “The provisions of” there shall be inserted “ sub-paragraphs (1) to (6) of ”;
for “that paragraph” there shall be substituted “ those sub-paragraphs ”; and
after “subject to a mortgage” there shall be inserted “ but not comprised in a farm business tenancy ”.
After that paragraph there shall be inserted—
“7AThe provisions of paragraph 4A of this Schedule shall apply in relation to mortgages of land comprised in farm business tenancies as they apply in relation to such tenancies, as if any reference in that paragraph to such a tenancy were a reference to such a mortgage, and any reference to a landlord or to a tenant were a reference to a mortgagee or to a mortgagor, as the case may be.”
In paragraph 12(1)(a), for the words from “did” to “holding” there shall be substituted “ was not comprised in a tenancy in relation to which the Act of 1986 applies or in a farm business tenancy ”.
In paragraph 13, after “or to a tenancy” there shall be inserted “ (other than a reference to a tenancy in relation to which the Act of 1986 applies or a farm business tenancy) ”.
In paragraph 25—
in sub-paragraph (a), at the beginning there shall be inserted “ subject to sub-paragraphs (ba), (bc), (bd)(i) and (be) of this paragraph, ”;
after sub-paragraph (b), there shall be inserted—
“(ba)in sub-paragraph (1) of paragraph 2, the words “held under a tenancy in relation to which the Act of 1986 applies” shall be omitted;
(bb)sub-paragraph (7) of paragraph 4 shall be omitted;
(bc)in sub-paragraph (1) of paragraph 5, the words “held under a tenancy in relation to which the Act of 1986 applies” shall be omitted;
(bd)in paragraph (6)—
(i)for paragraphs (a) and (b) of sub-paragraph (1) there shall be substituted the words “an agricultural holding”; and
(ii)sub-paragraph (2A) shall be omitted;
(be)in sub-paragraph (1)(a) of paragraph 12, for the words “was not comprised in a tenancy in relation to which the Act of 1986 applies or in a farm business tenancy” there shall be substituted the words “did not constitute or form part of an agricultural holding”;” and
in sub-paragraph (c), for “7” there shall be substituted “ 1A, 2A, 3A, 4A, 7, 7A ”.
21
Section 22 of the Agriculture (Miscellaneous Provisions) Act 1963 (allowances to persons displaced from agricultural land) shall be amended as follows.
In subsection (1), for paragraph (a) there shall be substituted—
“(a)the land—
(i)is used for the purposes of agriculture (within the meaning of the Agricultural Tenancies Act 1995) and is so used by way of a trade or business, or
(ii)is not so used but is comprised in a farm business tenancy (within the meaning of the Agricultural Tenancies Act 1995) and used for the purposes of a trade or business,”.
In subsection (6)(c), for “the Agricultural Holdings Act 1986” there shall be substituted “ , the Agricultural Tenancies Act 1995 ”.
22
In section 1(3) of the Leasehold Reform Act 1967 (tenants entitled to enfranchisement or extension), for paragraph (b) there shall be substituted—
“(b)it is comprised in—
(i)an agricultural holding within the meaning of the Agricultural Holdings Act 1986 held under a tenancy in relation to which that Act applies, or
(ii)the holding held under a farm business tenancy within the meaning of the Agricultural Tenancies Act 1995.”
23
In section 12 of the Agriculture (Miscellaneous Provisions) Act 1968 (additional payments in consequence of compulsory acquisition etc of agricultural holdings), after subsection (1) there shall be inserted—
“(1A)No sum shall be payable by virtue of subsection (1) of this section in respect of any land comprised in a farm business tenancy within the meaning of the Agricultural Tenancies Act 1995.”
24
In section 48 of the Land Compensation Act 1973 (compensation in respect of agricultural holdings) at the beginning of subsection (1) there shall be inserted “Subject to subsection (1A) below” and after subsection (1) there shall be inserted—
“(1A)This section does not have effect where the tenancy of the agricultural holding is a tenancy to which, by virtue of section 4 of the Agricultural Tenancies Act 1995, the Agricultural Holdings Act 1986 does not apply.”
25
Section 9 of the Rent (Agriculture) Act 1976 (effect of determination of superior tenancy, etc) shall be amended as follows.
In subsection (3), after “the Agricultural Holdings Act 1986” there shall be inserted “ held under a tenancy in relation to which that Act applies and land comprised in a farm business tenancy within the meaning of the Agricultural Tenancies Act 1995. ”
In subsection (4), for the words from “or” at the end of paragraph (b) onwards there shall be substituted—
“(c)a tenancy of an agricultural holding within the meaning of the Agricultural Holdings Act 1986 which is a tenancy in relation to which that Act applies; or
(d)a farm business tenancy within the meaning of the Agricultural Tenancies Act 1995.”
26
In Schedule 2 to that Act (meaning of “relevant licence” and “relevant tenancy”), in paragraph 2 for the words from “and a tenancy” to the end there shall be substituted “ , a tenancy of an agricultural holding within the meaning of the Agricultural Holdings Act 1986 which is a tenancy in relation to which that Act applies, and a farm business tenancy within the meaning of the Agricultural Tenancies Act 1995. ”
27
For section 10 of the Rent Act 1977 there shall be substituted—
“ Agricultural holdings etc.
10(1)A tenancy is not a protected tenancy if—
(a)the dwelling-house is comprised in an agricultural holding and is occupied by the person responsible for the control (whether as tenant or as servant or agent of the tenant) of the farming of the holding, or
(b)the dwelling-house is comprised in the holding held under a farm business tenancy and is occupied by the person responsible for the control (whether as tenant or as servant or agent of the tenant) of the management of the holding.
(2)In subsection (1) above—
“agricultural holding” means any agricultural holding within the meaning of the Agricultural Holdings Act 1986 held under a tenancy in relation to which that Act applies, and
“farm business tenancy”, and “holding” in relation to such a tenancy, have the same meaning as in the Agricultural Tenancies Act 1995.”
28
Section 137 of that Act (effect on sub-tenancy of determination of superior tenancy) shall be amended as follows.
In subsection (3), after “the Agricultural Holdings Act 1986” there shall be inserted “ held under a tenancy to which that Act applies and land comprised in a farm business tenancy within the meaning of the Agricultural Tenancies Act 1995. ”
In subsection (4), in paragraph (c), for the words from “applies” onwards there shall be substituted
“applies—
(i)a tenancy of an agricultural holding within the meaning of the Agricultural Holdings Act 1986 which is a tenancy in relation to which that Act applies, or
(ii)a farm business tenancy within the meaning of the Agricultural Tenancies Act 1995.”
29
In section 8(1) of the Protection from Eviction Act 1977 (interpretation)—
in paragraph (d), after “Agricultural Holdings Act 1986” there shall be inserted “ which is a tenancy in relation to which that Act applies ”, and
at the end there shall be added—
“(g)a farm business tenancy within the meaning of the Agricultural Tenancies Act 1995.”
30
In Schedule 1 to the Housing Act 1985 (tenancies which are not secure tenancies), for paragraph 8 there shall be substituted—
“ Agricultural holdings etc.
8(1)A tenancy is not a secure tenancy if—
(a)the dwelling-house is comprised in an agricultural holding and is occupied by the person responsible for the control (whether as tenant or as servant or agent of the tenant) of the farming of the holding, or
(b)the dwelling-house is comprised in the holding held under a farm business tenancy and is occupied by the person responsible for the control (whether as tenant or as servant or agent of the tenant) of the management of the holding.
(2)In sub-paragraph (1) above—
“agricultural holding” means any agricultural holding within the meaning of the Agricultural Holdings Act 1986 held under a tenancy in relation to which that Act applies, and
“farm business tenancy”, and “holding” in relation to such a tenancy, have the same meaning as in the Agricultural Tenancies Act 1995.”
31
In section 14(3) of the Landlord and Tenant Act 1985 (leases to which section 11 does not apply), at the end there shall be added “ and in relation to which that Act applies or to a farm business tenancy within the meaning of the Agricultural Tenancies Act 1995. ”
32
In Schedule 6 to the Agricultural Holdings Act 1986 (eligibility to apply for a new tenancy under Part IV of that Act), in paragraph 6 (occupation to be disregarded for purposes of occupancy condition), in sub-paragraph (1) after paragraph (d) there shall be inserted—
“(dd)under a farm business tenancy, within the meaning of the Agricultural Tenancies Act 1995, for less than five years (including a farm business tenancy which is a periodic tenancy),”.
34
In Schedule 1 to that Act (tenancies which cannot be assured tenancies), for paragraph 7 there shall be substituted—
“ Tenancies of agricultural holdings etc
7(1)A tenancy under which the dwelling-house—
(a)is comprised in an agricultural holding, and
(b)is occupied by the person responsible for the control (whether as tenant or as servant or agent of the tenant) of the farming of the holding.
(2)A tenancy under which the dwelling-house—
(a)is comprised in the holding held under a farm business tenancy, and
(b)is occupied by the person responsible for the control (whether as tenant or as servant or agent of the tenant) of the management of the holding.
(3)In this paragraph—
“agricultural holding” means any agricultural holding within the meaning of the Agricultural Holdings Act 1986 held under a tenancy in relation to which that Act applies, and
“farm business tenancy” and “holding”, in relation to such a tenancy, have the same meaning as in the Agricultural Tenancies Act 1995.”
35
Section 65 of the Town and Country Planning Act 1990 (notice etc. of applications for planning permissions) shall be amended as follows.
In subsection (2), for “a tenant of any agricultural holding any part of which is comprised in that land” there shall be substituted “ an agricultural tenant of that land ”.
In subsection (8), for the definition of “agricultural holding” there shall be substituted—
““agricultural tenant”, in relation to any land, means any person who—
(a)is the tenant, under a tenancy in relation to which the Agricultural Holdings Act 1986 applies, of an agricultural holding within the meaning of that Act any part of which is comprised in that land; or
(b)is the tenant, under a farm business tenancy (within the meaning of the Agricultural Tenancies Act 1995), of land any part of which is comprised in that land;”.
36
In section 21 of the Coal Mining Subsidence Act 1991 (property belonging to protected tenants) in subsection (3), after paragraph (a) there shall be inserted—
“(aa)a tenant under a farm business tenancy within the meaning of the Agricultural Tenancies Act 1995;”.
37
In Schedule 3 to that Act (property belonging to protected tenants) in paragraph 1(2), after paragraph (b) there shall be inserted—
“(bb)section 20 of the Agricultural Tenancies Act 1995;”.