Regulation 7 Effect of land transfers on special quota

After regulation 9 of the principal Regulations there shall be inserted—

“Effect of land transfers on special quota

9A

(1)

Subject to paragraph (3) and to regulation 9B where a producer has a special quota registered in his name—

(a)

that special quota shall be returned to the Community reserve if the holding is sold or leased by the producer; and

(b)

a proportion of that special quota shall be returned to the Community reserve if only part of the holding is sold or leased by the producer.

(2)

The proportion of the special quota which is to be returned to the Community reserve in accordance with paragraph (1)(b) shall be the same proportion which the agricultural area of the holding sold or leased bears to the total agricultural area farmed by the producer.

(3)

This regulation shall not apply where the transfer of the holding or any part of it is effected by means of the following—

(a)

a licence to occupy land,

(b)

the tenancy of any land under which a holding, or part of a holding, in England and Wales is occupied for a period of less than 10 months,

(c)

the lease of any land under which a holding, or part of a holding, in Scotland is occupied for a period of less than 8 months,

(d)

the tenancy of any land under which a holding, or part of a holding, in Northern Ireland is occupied for a period of less than 12 months.

Exempt Transfers

9B

No part of the special quota shall be returned to the Community reserve where the holding or any part of it is transferred—

(a)

on inheritance,

(b)

by gift for which no consideration is given,

(c)

by the granting of a tenancy following a direction under section 39 or section 53 of the Agricultural Holdings Act 1986^f1 (direction for grant of tenancy to successor on death or retirement of previous tenant),

(d)

by the granting of a tenancy (following a direction under section 39 of that Act) in circumstances within section 45(6) of that Act (new tenancy granted by agreement to persons entitled to tenancy under direction),

(e)

by the granting of such a tenancy as is referred to in section 37(1)(b) or (2) of that Act (tenancy granted by agreement to close relatives),

(f)

by the granting of a tenancy other than under paragraphs (c), (d) or (e) of this regulation by the landlord to a successor of a tenant who has died or retired,

and the person to whom the holding or any part of it is transferred undertakes to comply with the undertakings of his predecessor under Article 3a of Council Regulation 857/84.

Notification of transfer of a holding or part of a holding

9C

(1)

Subject to regulation 9B where a producer has a special quota registered in his name and intends to transfer the whole or a part of his holding he shall submit to the Minister—

(a)

before making such transfer a duly completed form prescribed for this purpose from time to time by the Minister, and

(b)

such other evidence relating to the proposed transfer, and within such time, as the Minister may reasonably require.

(2)

Where a transfer takes place of a holding or part of a holding as is referred to in regulation 9B the transferee shall submit to the Minister—

(a)

a duly completed form prescribed for this purpose from time to time by the Minister, and

(b)

such other evidence relating to the proposed transfer, and within such time, as the Minister may reasonably require.”.