Agricultural Holdings (Scotland) Act 1991
What this means for your business
- Enforced by
- The Crown Estate, Crown Estate Scotland, APHA, DEFRA, Forestry Commission, Natural England
- Applies to
- United Kingdom
- On this page
- 16 compliance obligations, 1 practical guide
What you must do
16 compliance obligations under this legislation.
Risk assessment 1
Carry out valuation of land and compensation under the Act
If you are appointed to value an agricultural holding in Scotland, you must produce a valuation that sets out the landās market value (both with vacant possession and with the tenant in occupation) and the compensation the tenant or landlord is entitled to. The valuation must follow the specific rules about what you can and cannot take into account and must include the calculation of any compensation payable if the landlord accepts a notice to relinquish the holding.
Management duties 5
Give landlord notice and avoid damage when removing fixtures or buildings
If you have installed machinery, fencing, or a building on a rented agricultural holding, you can take it away any time while youāre still renting, or up to six months after the tenancy ends (or longer if youāve agreed). You must first pay any rent you owe, satisfy all other tenancy duties, and give the landlord at least one monthās written notice. When you remove the items you must not cause avoidable damage and must repair any damage you do cause straight away.
Include required provisions in agricultural lease agreements
When you grant or take an agricultural lease in Scotland you must make sure the lease contains a set list of details ā the partiesā names, a clear description of the land, the lease term and rent, plus fireādamage provisions. The landlord must promise to rebuild or replace fireādamaged buildings and to insure them, while the tenant must promise to replace fireālost crops (or their value) and to insure stock and harvested crops.
Invite and consider landlord/tenant written representations for valuation
When you act as the valuer for a Scottish agricultural holding, you must ask the landlord and tenant to put their views on the land value in writing and you must take those comments into account. You also need to be able to go onto the land and request any reasonable information from them to complete your assessment.
Offer landlord or incoming tenant chance to buy manure and crops before removal
If you or your landlord give a notice to quit an agricultural holding, you cannot simply take away manure, compost, hay, straw or crops grown in the last year. You must first give the landlord or the new tenant a reasonable chance to buy these items at their fair market value (or the price set in the lease) before you remove or sell them.
Use fire insurance proceeds to rebuild damaged farm buildings
If you are the landlord of an agricultural holding and you have a fire insurance policy covering the buildings or other leased assets, any money you receive after a fire must be spent on repairing or rebuilding those assets. This applies unless you and the tenant agree to a different use of the money, or the Secretary of State decides otherwise.
Notifications 2
Notify landlord of lease acquisition on intestacy
If you inherit an agricultural lease in Scotland, you must inform the landlord that you have become the new tenant. You have 21 days from the date you acquire the lease (or as soon as possible if there is an unavoidable delay) to send the notice. Without a counterānotice from the landlord, the lease will automatically bind both parties from the acquisition date.
Serve notice of intention to relinquish tenancy and copy to Commissioner
If you, as a tenant, want to end your agricultural tenancy and receive compensation, you must give the landlord a written notice saying you will quit. At the same time you must also send a copy of that notice to the Tenant Farming Commissioner.
Other requirements 2
Give proper notice to end an agricultural tenancy
When the fixed term of an agricultural lease ends, it will automatically roll over for another year unless either the landlord serves a notice to quit or the tenant (occupier) serves a notice of intention to quit. You must give the correct written notice if you want the tenancy to finish at the end of the term.
Reduce rent when part of the holding is taken back by landlord
If you own farmland and a tenant loses part of the holding ā either because the tenant has legally quit that part or because the lease lets you reātake it ā the tenant gets a rent cut. The Land Court decides how much the cut is and you must pay that lower rent.
Payments and fees 3
Accept tenant's relinquishment notice and pay compensation
If you are a landlord of an agricultural holding in Scotland and you decide to accept a tenantās notice to quit, you must formally notify the tenant within 28 days and pay the compensation they are entitled to within 6 months. You also have to send a copy of this acceptance notice to the Tenant Farming Commissioner.
Pay compensation to tenant when tenancy ends by notice to quit
If you, as a landlord of an agricultural holding in Scotland, give a notice to quit (or a tenantās counterānotice reduces the holding) and the tenant has to leave, you must pay them compensation for the disturbance. The payment is normally up to one yearās rent, unless the tenant gave you at least a monthās notice of any sale of goods and let you value them, in which case a larger amount may be payable.
Pay valuerās expenses for agricultural holding valuations
If a valuer is appointed to assess the value of your farm land by the Tenant Farming Commissioner or the Land Court, you must cover the valuerās costs. Should the Commissioner initially pay those costs, they will ask you to repay them. In practice you need to budget for, receive, and settle the valuerās invoice promptly.
Offences and prohibitions 1
Obstruct entry or inspection by authorised agricultural official
Fine up to Ā£500If you prevent or hinder a person authorised by the Secretary of State ā such as an inspector from the Environment Agency, APHA, Crown Estate Scotland, Forestry Commission or Natural England ā from entering or inspecting your land as required, you commit an offence. On conviction in the Magistrates' Court you can be fined up to Ā£500. No prison term is attached.
Reporting and filing 2
Provide sheepāstock sales statement before valuation
If a dispute over the value of your sheep stock is sent to the Land Court or an arbiter, you must give a detailed statement of all sheep you have sold, together with supporting documents, at least 28 days before the court or arbiter makes a decision. The other party in the dispute can inspect the documents you submit.
Serve notice of assessment to tenant, landlord and Commissioner
If you act as the valuer for an agricultural holding, you must send a written notice showing the land value and any compensation amounts to both the tenant and the landlord, and also copy the Tenant Farming Commissioner. This notice has to be sent within the 8āweek window that starts when the deadline for an application under sāÆ32H(3) passes (or when a Land Court decision is given).
Penalties for non-compliance
1 penalty under this legislation.
Obstruct entry or inspection by authorised agricultural official
Fine up to Ā£500
Practical guidance
Our guides explain how to comply with the requirements above.
Sections and provisions
144 classified provisions from this legislation.
Duties 16
- Schedule 1 Provisions Required in Leases
- s.3 Leases to be continued by tacit relocation.
- s.6 Sums recovered under fire insurance policy.
- s.12 Transfer of lease on intestacy
- s.17 Prohibition of removal of manure, etc., after notice to quit,etc.. agreement
- s.18 Tenantās right to remove fixtures and buildings. above
- s.31 Reduction of rent where tenant dispossessed of part of holding. depreciation of the value
- s.32J Assessment of value of land etc. improvements
- s.32M Notice of assessment improvements
- s.32C Tenant's offer to relinquish tenancy
- s.32I Valuer's expenses
- s.32G Appointment of valuer by Tenant Farming Commissioner
- s.32K Valuation: further provision
- s.32Q Landlord's acceptance of notice of intention to relinquish
- s.43 Compensation for disturbance. Compensation
- s.71 Statement of sales of stock. question as
Powers 30
- s.4 Written leases and the revision of certain leases.
- s.8 Record of condition, etc. , of holding.
- s.10 Power of landlord to enter on holding.
- s.11 Bequest of lease.
- s.12B Landlord's objection to legatee or acquirer on intestacy: other persons
- s.14A Landlord improvement notices
- s.14 Determination by the Land Court under sections 4 and 5
- s.14B Objection by tenant
- s.14C Referral to Land Court
- s.14D Notice of dates of improvement
- s.15 Increase of rent for certain improvements by landlord.
- s.15A Tenantās right to withhold rent
- s.20 Removal of tenant for non-payment of rent.
- s.26 Certificates of bad husbandry.
- s.30 Tenantās right to treat notice to quit part as notice to quit entire holding.
- s.32B New entrants to farming and persons progressing in farming
- s.32S Withdrawal of notice of acceptance
- s.32D Form and content of notice of intention to relinquish
- s.32N Appeal to Lands Tribunal against valuer's assessment
- s.32P Withdrawal of notice of intention to relinquish
- ... and 10 more powers
Definitions 19
- s.1 Meaning of āagricultural holdingā and āagricultural landā. agricultural holding agricultural land
- Schedule 9 Valuation of Sheep Stock in Scotland in Respect of Old Leases
- Schedule 12 TRANSITIONALS AND SAVINGS
- s.32W Interpretation of Part Tenant Farming Commissioner valuer notice of acceptance
- s.33 Improvements. 1923 Act improvement 1931 Act improvement old improvement
- s.34A Amnesty under the Land Reform (Scotland) Act 2016
- s.40 Market gardens.
- s.45 Compensation to landlord for deterioration etc. of holding.
- s.50 Determination of claims for compensation where holding is divided.
- s.53 Extent to which compensation recoverable under agreements.
- s.59 Interpretation etc. of Part VI. acquiring authority
- s.72 Interpretation of sections 68 to 71. agricultural holding
- s.74 Power of limited owners to give consents, etc..
- s.77 Appointment of guardian to landlord or tenant.
- s.79 Application to Crown land.
- s.84 Service of notices, etc..
- s.85 Interpretation. the 1911 Act the 1949 Act agricultural unit
- s.86 Construction of references in other Acts to holdings as defined by earlier Acts.
- Schedule 10 Valuation of Sheep Stock in Scotland in Respect of Leases Entered into after 1st December 1986
Exemptions 27
- s.7 Freedom of cropping and disposal of produce.
- s.10A Assignation of tenancy
- s.12C Landlord's objection to legatee or acquirer on intestacy: supplementary provision
- s.12A Landlord's objection to legatee or acquirer on intestacy: near relative
- s.14F Emergency improvements
- s.16A Leases not terminated on grounds of non-residence
- s.16 Leases not terminated by variation of terms, etc..
- s.21 Notice to quit and notice of intention to quit.
- s.22 Restrictions on operation of notices to quit.
- s.23 Consent by Land Court or arbitration on notices to quit.
- s.29 Notice to quit part of holding to be valid in certain cases.
- s.32V Application of section 10A to assignation under this Part
- s.32 Further restrictions on operation of certain notices to quit.
- s.32E Restrictions on serving notice of intention to relinquish
- s.32T Consequences of landlord paying compensation to tenant
- s.33A Agreements as to compensation for improvements
- s.35 Payment of compensation by incoming tenant.
- s.37 Consents necessary for compensation for some improvements.
- s.38 Notice required of certain improvements.
- s.39 Compensation for Sch. 5, Pt. II , improvements conditional on approval of Land Court in certain cases.
- ... and 7 more exemptions