# The Common Agricultural Policy (Direct Payments etc.) (Scotland) Regulations 2015, Regulation 14: Windfall profit

Extent: S

(1) For the purposes of Article 28 of the Direct Payments Regulation and as determined in accordance with Article 27 of the Direct Payments Delegated Regulation , as those Regulations had effect immediately before exit day, where paragraphs (2) and (3) apply, an above-threshold increase in the value of payment entitlements to be allocated to a farmer in respect of 2015, reverts to the national reserve.
(2) This paragraph applies—
(a) where in accordance with the 2003 Act a short limited duration tenancy or a limited duration tenancy (as construed in accordance with sections 4 and 5 of the 2003 Act) has been terminated or otherwise brought to an end before the expiry of the term of tenancy and, in the case of either type of tenancy, at the point the tenancy has been so terminated or brought to an end more than half of the original term of the tenancy had still to run;
(b) where the term of a tenancy to which section 3 of the 2003 Act applies (a lease for grazing or mowing) has expired; or
(c) where there has been a sale of an agricultural area.
(3) This paragraph applies where as a result of any of the circumstances mentioned in paragraph (2), there has been a reduction of more than 40 per cent in the area-determined for the purposes of the basic payment scheme under Chapter 1 of Title III of the Direct Payments Regulation in respect of 2015, as compared with the area-determined for the purposes of the single payment scheme under Title III of the 2009 Council Regulation in respect of 2014.
(4) In this regulation—
“above-threshold increase” means an increase attributable to the portion of the reduction in the area-determined exceeding 40 per cent;
“area-determined” means the area determined by the Scottish Ministers as meeting the eligibility criteria applicable to the schemes mentioned in paragraph (3); and
“the 2003 Act” means the Agricultural Holdings (Scotland) Act 2003 .

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Source: https://www.legislation.gov.uk/ssi/2015/58/regulation/14 (the official version)
Page: https://openlegislation.uk/common-agricultural-policy-direct-payments-etc-scotland-regulations-2015/regulation-14
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.