PART 3TRANSFERS OF QUOTA

Retention of quota at the end of a tenancyI114

1

This regulation has effect as respects tenancies ending after 31st March 2005.

2

Where–

a

a tenant of any land in a holding has quota registered as available to that tenant;

b

the quota is so registered by virtue of a transfer referred to in regulation 13 the cost of which was not borne by the landlord of the tenant;

c

the tenancy of the land in question expires without any possibility of renewal on similar terms;

d

the tenant and the landlord of the tenant have not agreed that, after the expiry of the tenancy, the quota should no longer be available to the tenant; and

e

the tenant continues to be a producer after the expiry of the tenancy in relation to–

i

another holding; or

ii

another part of the holding of which the land formed part,

the tenant may submit a notice to the Scottish Ministers that the quota is to be available to the tenant by virtue of the occupation by the tenant of that other holding or that other part of the holding of which the land formed part.

3

A notice submitted pursuant to paragraph (2) shall–

a

be in such form as the Scottish Ministers may reasonably require;

b

reach the Scottish Ministers no later than 31st March in the quota year in which the tenancy expires; and

c

include a statement by the tenant–

i

that the tenant and the landlord of the tenant have not agreed that, after the expiry of the tenancy, the quota should be registered in relation to the holding which then comprises or, as the case may be, includes, the land, stating the amounts of used and unused quota involved, and

ii

that the tenant continues to be a producer.

4

Where a tenant submits a notice pursuant to this regulation, the tenant shall not be entitled to receive compensation under paragraph 2 of Schedule 2 to the Agriculture Act 198610 on the termination of the tenancy in question.