(1)The purposes authorised by section 73 of the Settled Land Act 1925 (either as originally enacted or as applied in relation to trusts for sale by section 28 of the Law of Property Act 1925) or section 26 of the [1925 c. 18.] Universities and College Estates Act 1925 for the application of capital money shall include—
(a)the payment of expenses incurred by a landlord under a farm business tenancy in, or in connection with, the making of any physical improvement on the holding,
(b)the payment of compensation under section 16 of this Act, and
(c)the payment of the costs, charges and expenses incurred by him on a reference to arbitration under section 19 or 22 of this Act.
(2)The purposes authorised by section 71 of the Settled Land Act 1925 (either as originally enacted or as applied in relation to trusts for sale by section 28 of the [1925 c. 18.] Law of Property Act 1925) as purposes for which money may be raised by mortgage shall include the payment of compensation under section 16 of this Act.
(3)Where the landlord under a farm business tenancy—
(a)is a tenant for life or in a fiduciary position, and
(b)is liable to pay compensation under section 16 of this Act,
he may require the sum payable as compensation and any costs, charges and expenses incurred by him in connection with the tenant’s claim under that section to be paid out of any capital money held on the same trusts as the settled land.
(4)In subsection (3) above—
“capital money” includes any personal estate held on the same trusts as the land; and
“settled land” includes land held on trust for sale or vested in a personal representative.