# Land Reform (Scotland) Act 2025, Paragraph 41: Small landholder’s right to compensation: increase in value due to diversification

Extent: S
Status: prospective

(1) The small landholder is entitled to compensation from the landlord of the small landholding where—
(a) during the tenancy, the use of any part of the holding, or a change to any part of it, for a purpose other than cultivation has increased the value of the holding from what it would otherwise have been,
(b) the use or change occurred wholly on or after the coming into force of this paragraph, and
(c) the use or change was authorised in accordance with Part 4.
(2) The amount of compensation payable under sub-paragraph (1) is an amount equal to the value of the use or change in question to an incoming tenant of the holding after deduction of—
(a) any benefit which the landlord or the landlord’s predecessor in title has given, or has agreed in writing to give, the landholder or the landholder’s predecessors under the same tenancy in consideration of the use or change in question, and
(b) any grant which has been or will be made to the landholder, or the landholder’s predecessors under the same tenancy, in respect of the use or change in question.
(3) But where an incoming tenant’s ability to use the whole of the land comprised in the holding for the purposes of cultivation is substantially prejudiced as a result of the use or change in question, no compensation is payable under sub-paragraph (1) unless the use or change has an environmental benefit.

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Source: https://www.legislation.gov.uk/asp/2025/15/schedule/2/paragraph/41 (the official version)
Page: https://openlegislation.uk/land-reform-scotland-act-2025/schedule-2/paragraph-41
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.