Agricultural Holdings (Scotland) Act 1991

Part IIS Terms of Leases and Variations Thereof

4 Written leases and the revision of certain leases.S

(1)Where in respect of the tenancy of an agricultural holding—

(a)there is not in force a lease in writing; or

(b)there is in force a lease in writing, being either—

(i)a lease entered into on or after 1st November 1948, or

(ii)a lease entered into before that date, the stipulated period of which has expired and which is being continued in force by tacit relocation,

but such lease contains no provision for one or more of the matters specified in Schedule 1 to this Act or contains a provision inconsistent with that Schedule or with section 5 of this Act,

either party may give notice in writing to the other requesting him to enter into a lease in writing containing, as the case may be, provision for all of the matters specified in Schedule 1 to this Act, or a provision which is consistent with that Schedule or with section 5 of this Act; and if within the period of 6 months after the giving of such notice no such lease has been concluded, the terms of the tenancy shall be referred to [F1the Land Court].

(2)On a reference under subsection (1) above, the [F2Land Court shall in its determination] specify the terms of the existing tenancy and, in so far as those terms do not make provision for all the matters specified in Schedule 1 to this Act or make provision inconsistent with that Schedule or with section 5 of this Act, make such provision for those matters as appears to the [F3Land Court] to be reasonable.

(3)On a reference under subsection (1) above, the [F4Land Court may include in its determination] any further provisions relating to the tenancy which may be agreed between the landlord and the tenant, and which are not inconsistent with this Act.

(4)The [F5determination of the Land Court] under this section or section 5 of this Act shall have effect as if the terms and provisions specified and made therein were contained in an agreement in writing between the landlord and the tenant, having effect as from the making of the [F6determination] or from such later date as the [F6determination] may specify.

5 Fixed equipment and insurance premiums.S

(1)When a lease of an agricultural holding to which this section applies is entered into, a record of the condition of the fixed equipment on the holding shall be made forthwith, and on being so made shall be deemed to form part of the lease; and section 8 of this Act shall apply to the making of such a record and to the cost thereof as it applies to a record made under that section.

(2)There shall be deemed to be incorporated in every lease of an agricultural holding to which this section applies—

(a)an undertaking by the landlord that, at the commencement of the tenancy or as soon as is reasonably practicable thereafter, he will put the fixed equipment on the holding into a thorough state of repair, and will provide such buildings and other fixed equipment as will enable an occupier reasonably skilled in husbandry to maintain efficient production as respects both—

(i)the kind of produce specified in the lease, or (failing such specification) in use to be produced on the holding, and

(ii)the quality and quantity thereof,

and that he will during the tenancy effect such replacement or renewal of the buildings or other fixed equipment as may be rendered necessary by natural decay or by fair wear and tear; and

(b)a provision that the liability of the tenant in relation to the maintenance of fixed equipment shall extend only to a liability to maintain the fixed equipment on the holding in as good a state of repair (natural decay and fair wear and tear excepted) as it was in—

(i)immediately after it was put in repair as aforesaid, or

(ii)in the case of equipment provided, improved, replaced or renewed during the tenancy, immediately after it was so provided, improved, replaced or renewed.

F7(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4)Any provision in a lease to which this section applies requiring the tenant to pay the whole or any part of the premium due under a fire insurance policy over any fixed equipment on the holding shall be null and void.

[F8(4A)Any agreement between the landlord and tenant made before the coming into force of this subsection which purports to provide for the tenant to execute on behalf of the landlord (whether wholly at his expense or wholly or partly at the expense of the landlord) any work effecting such replacement or renewal of the building or other fixed equipment on the holding as is rendered necessary by natural decay or by fair wear and tear shall be nullified provided that subsection (4B) below is complied with.

[F9(4B)This subsection is complied with if—

(a) subject to subsection   (4BA), no later than 6   months before the date from which any variation of rent will take effect, the tenant gave written notice to the landlord stating that the agreement is to be nullified on that date;

(b) the rent is reviewed in accordance with the terms of the tenancy or is determined by the Land Court in accordance with section   13 of this Act; and

(c)on the date referred to in paragraph (a)—

(i)the buildings and other fixed equipment are in a reasonable state of repair; or

(ii)if the buildings and other fixed equipment were in an unreasonable state of repair when the agreement was made, they are not in a worse state of repair than they were then.

(4BA) Where a rent review is initiated less than 6   months before any variation of rent would take effect, subsection (4B)(a) is complied with if notice is given when it is initiated, or as soon as reasonably practicable thereafter. ]

(4C)Any agreement between the landlord and tenant made before the coming into force of this subsection which purports to provide for the tenant to bear any expense of any work effecting such replacement or renewal of the building or other fixed equipment on the holding as is rendered necessary by natural decay or by fair wear and tear shall be subject to subsections (4A) and (4B) above.

(4D)Any agreement between the landlord and tenant made on or after this subsection comes into force which purports to provide for the tenant to bear any expense of any work which the landlord is required to execute in order to fulfil his obligations under the lease shall be null and void.]

F10(5). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(6)This section applies to any lease of an agricultural holding entered into on or after 1st November 1948.

6 Sums recovered under fire insurance policy.S

Where the tenant of an agricultural holding is responsible for payment of the whole or part of the premium due under a fire insurance policy in the name of the landlord over any buildings or other subjects included in the lease of the holding and the landlord recovers any sum under such policy in respect of the destruction of, or damage to, the buildings or other subjects by fire, the landlord shall be bound, unless the tenant otherwise agrees, to expend such sum on the rebuilding, repair, or restoration of the buildings or subjects so destroyed or damaged in such manner as may be agreed or, failing agreement, as may be determined by the Secretary of State.

7 Freedom of cropping and disposal of produce.S

(1)Subject to subsections (2) and (5) below, the tenant of an agricultural holding shall, notwithstanding any custom of the country or the provisions of any lease or of any agreement respecting the disposal of crops or the method of cropping of arable lands, have full right, without incurring any penalty, forfeiture or liability,—

(a)to dispose of the produce of the holding, other than manure produced thereon;

(b)to practise any system of cropping of the arable land on the holding.

(2)Subsection (1) above shall not have effect unless, before exercising his rights thereunder or as soon as is practicable after exercising them, the tenant makes suitable and adequate provision—

(a)in the case of an exercise of the right to dispose of crops, to return to the holding the full equivalent manurial value to the holding of all crops sold off or removed from the holding in contravention of any such custom, lease or agreement; and

(b)in the case of an exercise of the right to practise any system of cropping, to protect the holding from injury or deterioration.

(3)If the tenant of an agricultural holding exercises his rights under subsection (1) above so as to injure or deteriorate, or to be likely to injure or deteriorate, the holding, the landlord shall have the following remediesF11...—

(a)should the case so require, he shall be entitled to obtain an interdict restraining the exercise of the tenant’s rights under that subsection in that manner;

(b)in any case, on the tenant quitting the holding on the termination of the tenancy the landlord shall be entitled to recover damages for any injury to or deterioration of the holding attributable to the exercise by the tenant of his rights under that subsection.

[F12(3A)Such interdict as is, or damages as are, mentioned in subsection (3) above shall be obtainable only in the Land Court; and, notwithstanding the terms of section 84 of the Agricultural Holdings (Scotland) Act 2003 (asp 11), no other remedy shall be available in respect of the circumstances mentioned in that subsection.]

[F13(4)For the purposes of any proceedings for an interdict brought under paragraph (a) of subsection (3) above, where the question whether the tenant is exercising or has exercised his rights under subsection (1) above in such a manner as is referred to in subsection (3) above has, by virtue of section 61(1) of this Act, been determined by arbitration, a certificate of the arbiter as to his determination of the question shall, for the purposes of any proceedings brought under this section, be conclusive proof of the facts stated in the certificate.]

(5)Subsection (1) above shall not apply—

(a)in the case of a tenancy from year to year, as respects the year before the tenant quits the holding or any period after he has received notice to quit or given notice of intention to quit which results in his quitting the holding; or

(b)in any other case, as respects the year before the expiry of the lease.

(6)(a)In this section “arable land” does not include land in grass which, by the terms of a lease, is to be retained in the same condition throughout the tenancy;

(b)the reference in paragraph (a) above to the terms of a lease shall, where the Secretary of State has directed under section 9 of the 1949 Act or an arbiter has directed under that section or [F14it has been determined] under section 9 of this Act that the lease shall have effect subject to modifications, be construed as a reference to the terms of the lease as so modified.

8 Record of condition, etc., of holding.S

(1)The landlord or the tenant of an agricultural holding may, at any time during the tenancy, require the making of a record of the condition of the fixed equipment on, and of the cultivation of, the holding.

(2)The tenant may, at any time during the tenancy, require the making of a record of—

(a)existing improvements carried out by him or in respect of the carrying out of which he has, with the consent in writing of his landlord, paid compensation to an outgoing tenant;

(b)any fixtures or buildings which, under section 18 of this Act, he is entitled to remove.

[F15(3)A record under this section shall be made by a person to be appointed by agreement between the parties; but, in the absence of such agreement, the Scottish Ministers shall on the application of either party appoint a person to make the record.

(3A)The Scottish Ministers may charge such reasonable fee as they may determine for making an appointment under subsection (3) above.

(3B)The record shall be in such form as the parties agree or, in the absence of such agreement, as the recorder considers appropriate.]

(4)A record made under this section shall show any consideration or allowances which have been given by either party to the other.

(5)Subject to section 5 of this Act, a record may, if the landlord or the tenant so requires, be made under this section relating to a part only of the holding or to the fixed equipment only.

(6)Any question or difference between the landlord and the tenant arising out of the making of a record under this section shallF16... be referred to the Land Court for determination by them.

(7)The cost of making a record under this section shall, in default of agreement between the landlord and the tenant, be borne by them in equal shares.

(8)The remuneration of [F17any] person appointed by the Secretary of State to make a record under this section shall be such amount as the Secretary of State may fix, and any other expenses of and incidental to the making of the record shall be subject to taxation by the auditor of the sheriff court, and that taxation shall be subject to review by the sheriff.

(9)The remuneration of [F17any] person appointed by the Secretary of State to make a record under this section shall be recoverable by that person from either the landlord or the tenant, but any amount paid by either of those parties in respect of—

(a)that remuneration, or

(b)any other expenses of and incidental to the making of the record,

in excess of the share payable by him under subsection (7) above of the cost of making the record, shall be recoverable by him from the other party.

9 Arbitration as to permanent pasture.S

(1)Where under the lease of an agricultural holding, whether entered into before or after the commencement of this Act, provision is made for the maintenance of specified land, or a specified proportion of the holding, as permanent pasture, the [F18Land Court may determine] the holding that the amount of land required to be maintained as permanent pasture should be reduced.

(2)[F19The Land Court may in its determination] direct that the lease shall have effect subject to such modifications of its provisions as to land which is to be maintained as permanent pasture or is to be treated as arable land, and as to cropping, as may be specified in the direction.

(3)If the [F20Land Court] gives a direction under subsection (2) above reducing the area of land which is to be maintained as permanent pasture, [F21it may also] direct that the lease shall have effect as if it provided that on quitting the holding on the termination of the tenancy the tenant should leave—

(a)as permanent pasture, or

(b)as temporary pasture sown with seeds mixture of such kind as may be specified in that direction,

(in addition to the area of land required by the lease, as modified by the direction, to be maintained as permanent pasture) a specified area of land not exceeding the area by which the land required to be maintained as permanent pasture has been reduced by the direction under subsection (2) above.

10 Power of landlord to enter on holding.S

The landlord of an agricultural holding or any person authorised by him may at all reasonable times enter on the holding for any of the following purposes—

(a)viewing the state of the holding;

(b)fulfilling the landlord’s responsibilities to manage the holding in accordance with the rules of good estate management;

(c)providing, improving, replacing or renewing fixed equipment on the holding otherwise than in fulfilment of such responsibilities.

[F2210A[F23Assignation of tenancy]S

(1)A lease of an agricultural holding may be assigned by the tenant to [F24any one of the persons mentioned in subsection (1A)] if, following notice under subsection (2), the landlord consents to a proposed assignation.

[F25(1A)The persons referred to in subsection (1) are—

(a)any person who would be, or would in any circumstances have been, entitled to succeed to the tenant's estate on intestacy by virtue of the Succession (Scotland) Act 1964,

(b)a spouse or civil partner of a child of the tenant,

(c)a spouse or civil partner of a grandchild of the tenant,

(d)a spouse or civil partner of a brother or sister of the tenant,

(e)a brother or sister of the tenant's spouse or civil partner,

(f)a spouse or civil partner of such a brother or sister,

(g)a child (including a step-child) of such a brother or sister,

(h)a grandchild (including a step-grandchild) of such a brother or sister,

(i)a step-child of the tenant,

(j)a spouse or civil partner of such a step-child,

(k)a descendant of such a step-child,

(l)a step-brother or step-sister of the tenant,

(m)a spouse or civil partner of such a step-brother or step-sister,

(n)a descendant of such a step-brother or step-sister.]

(2)The tenant must give the landlord a notice in writing of any intention of the tenant to assign the lease; and the notice must include the particulars of the proposed assignee, the terms upon which the assignation is to be made and the date on which it is to take effect.

(3)[F26Subject to subsection (3A), the] landlord may withhold consent to the proposed assignation if there are reasonable grounds for doing so; and, in particular the landlord may withhold consent if not satisfied that the proposed assignee—

(a)would have the ability to pay—

(i)the rent due under the lease; or

(ii)for adequate maintenance of the land; or

(b)has the skills or experience that would be required properly to manage and maintain the land in accordance with the rules of good husbandry.

[F27(3A)Where the tenant proposes to assign the lease to a person who is a near relative of the tenant, the only grounds on which the landlord can withhold consent to the proposed assignation are the following—

(a)that the person is not of good character,

(b)that the person does not have sufficient resources to enable the person to farm the holding with reasonable efficiency,

(c)subject to subsection (3B), that the person has neither sufficient training in agriculture nor sufficient experience in the farming of land to enable the person to farm the holding with reasonable efficiency.

(3B)The ground of objection in subsection (3A)(c) does not apply where the person—

(a)is engaged in or will begin, before the expiry of the period of 6 months beginning with the date of the notice under subsection (2), a course of relevant training in agriculture which the person is expected to complete satisfactorily within 4 years from that date, and

(b)has made arrangements to secure that the holding is farmed with reasonable efficiency until the person completes that course.]

(4)Any such withholding of consent (and the grounds for withholding it) is to be intimated in writing to the tenant within 30 days of the giving of the notice under subsection (2); and, if no such intimation is made, the landlord is deemed to have consented to the proposed assignation.

(5)Any term of a lease or of an agreement between the landlord and tenant which purports to provide that the lease of an agricultural holding may not be assigned under this section shall, in so far as it so purports, be null and void.]

[F28(6)In this section and in sections 12A and 12B, “near relative”, in relation to a tenant of an agricultural holding, means—

(a)a parent of the tenant,

(b)a spouse or civil partner of the tenant,

(c)a child of the tenant,

(d)a spouse or civil partner of such a child,

(e)a grandchild of the tenant,

(f)a brother or sister of the tenant,

(g)a spouse or civil partner of such a brother or sister,

(h)a child of a brother or sister of the tenant,

(i)a grandchild of a brother or sister of the tenant,

(j)a brother or sister of the tenant's spouse or civil partner,

(k)a spouse or civil partner of such a brother or sister,

(l)a child of such a brother or sister,

(m)a grandchild of such a brother or sister.]

11 Bequest of lease.S

(1)Subject to [F29subsections (2) and (3) and to sections 12A to 12C] , the tenant of an agricultural holding may, by will or other testamentary writing, bequeath his lease of the holding to [F30any one of the persons mentioned in subsection (1A) ] .

[F31(1A)The persons referred to in subsection (1) are—

(a)any person who would be, or would in any circumstances have been, entitled to succeed to the tenant's estate on intestacy by virtue of the Succession (Scotland) Act 1964,

(b)a spouse or civil partner of a child of the tenant,

(c)a spouse or civil partner of a grandchild of the tenant,

(d)a spouse or civil partner of a brother or sister of the tenant,

(e)a brother or sister of the tenant's spouse or civil partner,

(f)a spouse or civil partner of such a brother or sister,

(g)a child (including a step-child) of such a brother or sister,

(h)a grandchild (including a step-grandchild) of such a brother or sister,

(i)a step-child of the tenant,

(j)a spouse or civil partner of such a step-child,

(k)a descendant of such a step-child,

(l)a step-brother or step-sister of the tenant,

(m)a spouse or civil partner of such a step-brother or step-sister,

(n)a descendant of such a step-brother or step-sister.]

(2)A person to whom the lease of a holding is so bequeathed (in this section [F32and in sections 12A to 12C] referred to as “the legatee”) shall, if he accepts the bequest, give notice of the bequest to the landlord of the holding within 21 days after the death of the tenant, or, if he is prevented by some unavoidable cause from giving such notice within that period, as soon as practicable thereafter.

(3)The giving of a notice under subsection (2) above shall import acceptance of the lease and, unless the landlord gives a counter-notice under [F33section 12A(2) or 12B(2)] , the lease shall be binding on the landlord and on the legatee, as landlord and tenant respectively, as from the date of the death of the deceased tenant.

F34(4). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F34(5). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F34(6). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F34(7). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(8)If the legatee does not accept the bequestF35... the right to the lease shall be treated as intestate estate of the deceased tenant in accordance with Part I of the Succession (Scotland) Act 1964.

12[F36Transfer of lease on intestacy]S

(1)A person to whom the lease of an agricultural holding is transferred under section 16 of the Succession (Scotland) Act 1964 (referred to in this section [F37and in sections 12A to 12C] as “the acquirer”) shall give notice of the acquisition to the landlord of the holding within 21 days after the date of the acquisition, or, if he is prevented by some unavoidable cause from giving such notice within that period, as soon as is practicable thereafter and, unless the landlord gives a counter-notice under [F38section 12A(2) or 12B(2)] , the lease shall be binding on the landlord and on the acquirer, as landlord and tenant respectively, as from the date of the acquisition.

F39(2). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F39(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F39(4). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F39(5). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F4012ALandlord's objection to legatee or acquirer on intestacy: near relativeS

(1)This section applies where the person who gives notice to the landlord under section 11(2) or 12(1) is a near relative of the deceased.

(2)The landlord may, within 1 month after the notice is given under section 11(2) or 12(1), give to the person a counter-notice intimating that the landlord objects to receiving the person as tenant under the lease.

(3)The only grounds on which the landlord can object to receiving the person as tenant under the lease are the following—

(a)that the person is not of good character,

(b)that the person does not have sufficient resources to enable the person to farm the holding with reasonable efficiency,

(c)subject to subsection (4), that the person has neither sufficient training in agriculture nor sufficient experience in the farming of land to enable the person to farm the holding with reasonable efficiency.

(4)The ground of objection in subsection (3)(c) does not apply where the person—

(a)is engaged in or will begin, before the expiry of the period of 6 months beginning with the date of the notice under section 11(2) or 12(1), a course of relevant training in agriculture which the person is expected to complete satisfactorily within 4 years from that date, and

(b)has made arrangements to secure that the holding is farmed with reasonable efficiency until the person completes that course.

(5)If the landlord gives a counter-notice under subsection (2), the landlord may, within 1 month after the counter-notice is given, apply to the Land Court for an order—

(a)in the case of a legatee, declaring the bequest to be null and void,

(b)in the case of an acquirer, terminating the lease.

(6)If, on the hearing of such an application, any ground of objection stated by the landlord is established to the satisfaction of the Land Court, it must make an order—

(a)in the case of a legatee, declaring the bequest to be null and void,

(b)in the case of an acquirer, terminating the lease with effect as from such term of Whitsunday or Martinmas as the court specifies.

(7)In any other case, the Land Court must make an order declaring the legatee or, as the case may be, the acquirer to be the tenant under the lease and the lease to be binding on the landlord and on the legatee or acquirer, as landlord and tenant respectively, as from the date of the death of the deceased tenant.

(8)Where the landlord does not apply to the Land Court under subsection (5)—

(a)the counter-notice ceases to have effect on the expiry of the period of 1 month mentioned in that subsection, and

(b)the lease is to be binding on the landlord and on the legatee or acquirer, as landlord and tenant respectively, as from the date of the death of the deceased tenant.

12BLandlord's objection to legatee or acquirer on intestacy: other personsS

(1)This section applies where the person who gives notice to the landlord under section 11(2) or 12(1) is not a near relative of the deceased.

(2)The landlord may, within 1 month after notice is given under section 11(2) or 12(1), give to the person a counter-notice intimating that the landlord objects to receiving the person as tenant under the lease and—

(a)in the case of a legatee, declaring the bequest to be null and void,

(b)in the case of an acquirer, terminating the lease with effect as from such term of Whitsunday or Martinmas as the landlord specifies, being a term at least 1 year but no more than 2 years from the date of the counter-notice.

(3)If the landlord gives a counter-notice under subsection (2), the person may, within 1 month after the counter-notice is given, appeal to the Land Court.

(4)If, on the hearing of such an appeal, any reasonable ground stated by the person—

(a)in the case of a legatee, for not declaring the bequest to be null and void,

(b)in the case of an acquirer, for not terminating the lease,

is established to the satisfaction of the Land Court, it must make an order quashing the counter-notice.

(5)In any other case, the Land Court must make an order confirming the counter-notice.

12CLandlord's objection to legatee or acquirer on intestacy: supplementary provisionS

(1)Pending any proceedings under section 12A or 12B, the legatee or acquirer is to have possession of the holding provided the executor in whom the lease is vested under section 14 of the Succession (Scotland) Act 1964 consents.

(2)Subsection (1) does not apply where the Land Court, on the application of the landlord and on cause shown, directs otherwise.

(3)In the case of a legatee, if the bequest is declared null and void—

(a)under section 12A(6)(a),

(b)by virtue of a counter-notice under section 12B(2), no appeal to the Land Court having been made under section 12B(3), or

(c)by virtue of the Land Court confirming such a counter-notice on such an appeal,

the right to the lease is to be treated as intestate estate of the deceased tenant in accordance with Part 1 of the Succession (Scotland) Act 1964.

(4)In the case of an acquirer, if the lease is terminated—

(a)under section 12A(6)(b),

(b)by virtue of a counter-notice under section 12B(2), no appeal to the Land Court having been made under section 12B(3), or

(c)by virtue of the Land Court confirming such a counter-notice on such an appeal,

that termination is to be treated, for the purposes of Parts 4 and 5 of this Act (compensation), as termination of the acquirer's tenancy of the holding.

(5)But nothing in this section is to entitle the acquirer to compensation for disturbance.]

X1[F41Rent reviewS

X113Rent reviewS

Schedule 1A makes provision for review of the rent payable in respect of an agricultural holding.]

[F4214Determination by the Land Court under sections 4 and 5S

Where it appears to the Land Court—

(a)that, by reason of any provision which it is required by section 4 of this Act to include in its determination; or

(b)that, by reason of any provision included in its determination on any question as to the liability of a landlord or tenant under section 5 of this Act,

it is equitable that the rent of the holding should be varied, it may vary the rent accordingly.]

[F4314ALandlord improvement noticesS

(1)This section applies where the landlord of an agricultural holding intends to carry out a relevant improvement.

(2)A “relevant improvement” is an improvement specified in schedule 5 which is not intended to be carried out—

(a)at the request of or in agreement with the tenant,

(b)in pursuance of an undertaking given by landlord under section 39(3), or

(c)in pursuance of a direction given by the Scottish Ministers under powers conferred on them by or under any enactment.

(3)The landlord must give notice in writing to the tenant before carrying out the relevant improvement, unless section 14F applies.

(4)A notice served in accordance with this section is a “landlord improvement notice”.

(5)A landlord improvement notice must be dated and state the following—

(a)the names and designations of the landlord and the tenant,

(b)the name (if any) and the address of the holding or such other description of the holding as will identify it,

(c)details of the intended improvement, including the manner of the improvement,

(d)the landlord's reasons as to why the improvement is necessary to enable the tenant to fulfil the tenant's responsibilities to farm the holding in accordance with the rules of good husbandry.

14BObjection by tenantS

(1)Where the landlord has given a landlord improvement notice under section 14A, the tenant may object to the improvement or to part of it by giving notice in writing to the landlord before the end of the period of 2 months beginning with the day on which the tenant received the landlord improvement notice.

(2)A notice under subsection (1) must be dated and must state the tenant's reasons as to why the improvement is not necessary to enable the tenant to fulfil the tenant's responsibilities to farm the holding in accordance with the rules of good husbandry.

14CReferral to Land CourtS

(1)Where the tenant has given notice of objection under section 14B the landlord may, before the end of the period of 2 months beginning with the day on which the landlord received the notice of objection, apply to the Land Court for approval of the relevant improvement.

(2)The Land Court may—

(a)approve the carrying out of the relevant improvement—

(i)unconditionally, or

(ii)upon such terms as appear to it to be appropriate, or

(b)withhold its approval.

(3)Before approving a relevant improvement, the Land Court must be satisfied that the improvement is necessary to enable the tenant to fulfil the tenant's responsibilities to farm the holding in accordance with the rules of good husbandry.

14DNotice of dates of improvementS

(1)This section applies where an improvement is to be carried out by the landlord—

(a)at the request of or in agreement with the tenant,

(b)in pursuance of an undertaking given by the landlord under section 39(3),

(c)in pursuance of a direction given by the Scottish Ministers under powers conferred on them by or under any enactment, or

(d)after the landlord has given a landlord improvement notice in accordance with section 14A and—

(i)the tenant has not given notice of objection in accordance with section 14B, or

(ii)the tenant has given such notice of objection but the Land Court has approved the improvement under section 14C(2)(a).

(2)The landlord must give notice in writing to the tenant stating the period during which the landlord intends to carry out the improvement.

(3)Unless the landlord and tenant agree otherwise, that period must not commence earlier than the expiry of 2 weeks beginning with the day on which the landlord gives notice under subsection (2).

(4)Where the landlord has not begun to carry out an improvement, notice of which has been given under subsection (2), and there is a good reason for postponing the carrying out of the improvement, the landlord may give a new notice under subsection (2).

(5)Subsection (6) applies where the landlord has begun to carry out an improvement, notice of which has been given under subsection (2), and there is a good reason for extending the period during which the improvement is to be carried out.

(6)The landlord may, at any time before the expiry of the period stated in the notice under subsection (2), extend the period by giving notice in writing to the tenant stating the extended period during which the landlord intends to carry out the improvement.

(7)See section 14F on emergency improvements.

14EImprovement by landlord without notice etc.S

(1)Subsection (2) applies where a landlord has carried out an improvement and—

(a)the landlord did not give notice of the improvement to the tenant in accordance with section 14A,

(b)the tenant objected to the improvement under section 14B and the Land Court has not approved the improvement under section 14C(2)(a),

(c)the improvement is in breach of any decision of the Land Court under section 14C,

(d)the improvement was not an emergency improvement as defined in section 14F.

(2)Any such improvement is to be disregarded for the purposes of—

(a)assessing the tenant's responsibilities—

(i)in relation to farming the holding in accordance with the rules of good husbandry,

(ii)in relation to fixed equipment under section 5(2)(b)(ii).

(b)any subsequent rent review under schedule 1A.

14FEmergency improvementsS

(1)Where a landlord or a tenant considers that an emergency improvement is required, sections 14A(3) and 14D(2), (3), (5) and (6) do not apply.

(2)In this section an “emergency improvement” means a relevant improvement that is necessary for the purposes of—

(a)protecting public health from infectious diseases, contamination or other hazards which constitute a danger to human health,

(b)preventing a danger or potential danger to public safety,

(c)enabling the tenant to comply with the requirements of the Animal Health and Welfare (Scotland) Act 2006,

(d)securing the provision of essential services including electricity and water supply services, or

(e)remedying an accident or natural cause or force majeure which was exceptional and could not reasonably have been foreseen.]

15 Increase of rent for certain improvements by landlord.S

(1)Where the landlord of an agricultural holding has, whether before or after the commencement of this Act, carried out on the holding an improvement (whether or not one for the carrying out of which compensation is provided for under Part IV of this Act)—

(a)at the request of, or in agreement with, the tenant,

(b)in pursuance of an undertaking given by the landlord under section 39(3) of this Act, F44...

(c)in compliance with a direction given by the Secretary of State under powers conferred on him by or under any enactment, [F45, or

(d)after giving a landlord improvement notice in accordance with section 14A and—

(i)the tenant has not given notice of objection in accordance with section 14B, or

(ii)the tenant has given such notice of objection but the Land Court has approved the improvement under section 14C,]

subject to subsections (2) and (3) below, the rent of the holding shall, if the landlord by notice in writing served on the tenant within 6 months from the completion of the improvement so requires, be increased as from the completion of the improvement by an amount equal to the increase in the rental value of the holding attributable to the carrying out of the improvement.

(2)Where any grant has been made to the landlord out of moneys provided by Parliament, in respect of an improvement to which subsection (1) above applies, the increase in rent provided for by that subsection shall be reduced proportionately.

F46(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F47Tenant’s right to withhold rentS

15ATenant’s right to withhold rentS

(1)Subsection (2) below shall apply to an order—

(a)made under subsection (1)(b) of section 84 of the Agricultural Holdings (Scotland) Act 2003 (asp 11); and

(b)which is in relation to a failure of the landlord of an agricultural holding to fulfil any obligation he has towards the tenant in respect of fixed equipment.

(2)Where the landlord has failed—

(a)in a material regard; and

(b)as at the date specified under subsection (2) of that section,

to comply with an order to which this subsection applies, the tenant may apply to the Land Court for an order under subsection (3) below.

(3)An order under this subsection may (either or both)—

(a)authorise the tenant to carry out such work as the landlord would have to have carried out for the landlord to comply with the order to which subsection (2) above applies; and

(b)authorise the tenant to withhold payment of the rent payable to the landlord in respect of the holding on the condition that the tenant shall consign to the Land Court the amount otherwise so payable.

(4)The Land Court may, on the application of the tenant, from time to time release to the tenant any of the amount so consigned towards or in satisfaction of any reasonable costs incurred or to be incurred by the tenant for the purposes of or in connection with the carrying out of such work as is mentioned in paragraph (a) of subsection (3) above.

(5)The Land Court, on the application of the landlord and having regard to—

(a)whether any work mentioned in paragraph (a) of subsection (3) above remains to be carried out; and

(b)any costs mentioned in subsection (4) above,

may terminate the order made under subsection (3) above if the Court consider that it would be not be appropriate for the order to remain in force.

(6)Where the Land Court terminate the order made under subsection (3) above, the Court shall order such division between the landlord and tenant of the amount (or, where any of the amount has been released to the tenant, any remaining amount) consigned under subsection (3)(b) above as the Court consider to be equitable.

(7)Any work carried out and authorised under subsection (3)(a) above shall be treated as having been carried out at the landlord’s expense in so far as the costs of the work have been or are to be satisfied by the release to the tenant of any amount consigned under subsection (3)(b) above.

(8)Any right of the landlord—

(a)to irritate the lease on the grounds of non-payment of rent; or

(b)under section 20 or 22 of this Act in relation to non-payment of rent,

shall be unenforceable if the non-payment is in consequence of an authorisation under subsection (3)(b) above to withhold rent.

(9)Any term of the lease or of any agreement between the landlord and tenant that purports to deprive the tenant of any right conferred by virtue of this section shall, in so far as it so purports, be null and void.]

Termination of tenancyS

16 Leases not terminated by variation of terms, etc..S

The lease of an agricultural holding shall not be brought to an end, and accordingly neither party shall be entitled to bring proceedings to terminate the lease or, except with the consent of the other party, to treat it as at an end, by reason only that any new term has been added to the lease or that any terms of the lease (including the rent payable) have been varied or revised in pursuance of this Act.

[F4816ALeases not terminated on grounds of non-residenceS

(1)The lease of an agricultural holding shall not be brought to an end, and accordingly the landlord shall not be entitled to bring proceedings to terminate the lease or to treat it as at an end, by reason only that the tenant is not or has not been resident on the agricultural holding.

(2)Where there is a term in a lease of an agricultural holding which purports to require the tenant to reside on the holding, there shall, in place of that term, be deemed to be incorporated in the lease an undertaking by the tenant that he will, if he does not reside on the holding, ensure that a person who has the skills and experience necessary to farm the holding in accordance with the rules of good husbandry resides on the holding.]

17 Prohibition of removal of manure, etc., after notice to quit,etc..S

Where, in respect of an agricultural holding, notice to quit is given by the landlord or notice of intention to quit is given by the tenant, the tenant shall not, subject to any agreement to the contrary, at any time after the date of the notice, sell or remove from the holding any manure or compost, or any hay, straw or roots grown in the last year of the tenancy, unless and until he has given the landlord or the incoming tenant a reasonable opportunity of agreeing to purchase them on the termination of the tenancy at their fair market value, or at such other value as is provided by the lease.

18 Tenant’s right to remove fixtures and buildings.S

(1)Subject to subsections (2) to (4) below, and to section 40(4)(a) of this Act—

(a)any engine, machinery, fencing or other fixture affixed to an agricultural holding by the tenant thereof; and

(b)any building (other than one in respect of which the tenant is entitled to compensation under this Act or otherwise) erected by him on the holding,

not being a fixture affixed or a building erected in pursuance of some obligation in that behalf, or instead of some fixture or building belonging to the landlord, shall be removable by the tenant at any time during the continuance of the tenancy or before the expiry of 6 months, or such longer period as may be agreed, after the termination of the tenancy and shall remain his property so long as he may remove it by virtue of this subsection.

(2)The right conferred by subsection (1) above shall not be exercisable in relation to a fixture or building unless the tenant—

(a)has paid all rent owing by him and has performed or satisfied all his other obligations to the landlord in respect of the holding; and

(b)has, at least one month before whichever is the earlier of the exercise of the right and the termination of the tenancy, given to the landlord notice in writing of his intention to remove the fixture or building.

(3)If, before the expiry of the period of notice specified in subsection (2)(b) above, the landlord gives to the tenant a counter-notice in writing electing to purchase a fixture or building comprised in the notice, subsection (1) above shall cease to apply to that fixture or building, but the landlord shall be liable to pay to the tenant the fair value thereof to an incoming tenant of the holding.

(4)In the removal of a fixture or building by virtue of subsection (1) above, the tenant shall not do to any other building or other part of the holding any avoidable damage, and immediately after the removal shall make good all damage so occasioned.

19 Payment for implements, etc., sold on quitting holding.S

(1)Where a tenant of an agricultural holding has entered into an agreement or it is a term of the lease of the holding that the tenant will, on quitting the holding, sell to the landlord or to the incoming tenant any implements of husbandry, fixtures, farm produce or farm stock on or used in connection with the holding, notwithstanding anything in the agreement or lease to the contrary, it shall be deemed to be a term of the agreement or of the lease, as the case may be, that the property in the goods shall not pass to the buyer until the price is paid and that payment of the price shall be made within one month after the tenant has quitted the holding or, if the price of the goods is to be ascertained by a valuation, within one month after the delivery of the award in the valuation.

(2)Where payment of the price is not made within one month as aforesaid the outgoing tenant shall be entitled to sell or remove the goods and to receive from the landlord or the incoming tenant, as the case may be, by whom the price was payable, compensation of an amount equal to any loss or expense unavoidably incurred by the outgoing tenant upon or in connection with such sale or removal, together with any expenses reasonably incurred by him in the preparation of his claim for compensation.

F49(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

20 Removal of tenant for non-payment of rent.S

(1)When 6 months’ rent of an agricultural holding is due and unpaid, the landlord shall be entitled to raise an action of removing in the [F50Land Court] against the tenant, concluding for his removal from the holding at the term of Whitsunday or Martinmas next ensuing after the action is raised.

(2)In an action raised under subsection (1) above, the [F51Land Court] may, unless the arrears of rent then due are paid or caution is found to [F52its] satisfaction for them, and for one year’s rent further, decern the tenant to remove, and may eject him at the said term in like manner as if the lease were determined and the tenant had been legally warned to remove.

(3)A tenant of a holding removed under this section shall have the rights of an outgoing tenant to which he would have been entitled if his tenancy had terminated by operation of notice to quit or notice of intention to quit at the term when he is removed.

F53(4). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .