Part 4SCompensation under agricultural tenancies

Chapter 1SCompensation for improvements

[F1New types of tenancy] S

Annotations:

Amendments (Textual)

45Right to compensation for improvementsS

(1)Subject to sections 48 and 49, a tenant of a short limited duration tenancy [F2, a limited duration tenancy or a modern limited duration tenancy] is entitled, on quitting the land on termination of the tenancy, to compensation from the landlord in respect of any improvement to which this subsection applies carried out by the tenant.

(2)Subsection (1) applies to the improvements specified in Schedule 5 to the 1991 Act (that Schedule applying for the purposes of that subsection as it does for the purposes of that Act).

(3)Where an improvement is the improvement specified in paragraph 32 (laying down of temporary pasture) of that Schedule, the tenant is entitled to compensation under subsection (1) even if—

(a)that improvement; or

(b)the leaving of temporary pasture at the termination of the tenancy,

was in contravention of a term of the lease or any agreement made by the tenant as to the method of cropping the arable lands.

(4)Where a tenant has remained in occupation of the land during two or more tenancies, the tenant is not deprived of any right to compensation under subsection (1) by reason only that the improvements were not carried out during the tenancy on the termination of which the tenant quits the land.

[F3(5)Nothing in any order made under section 73 of the 1991 Act which varies the provisions of schedule 5 to that Act affects the right of a tenant of a short limited duration tenancy, a limited duration tenancy or a modern limited duration tenancy to claim, in respect of an improvement made or begun before the date on which such order comes into force, any compensation to which, but for the making of the order, the tenant would have been entitled.]

Annotations:

Amendments (Textual)

Modifications etc. (not altering text)

Commencement Information

I1S. 45 in force at 27.11.2003 by S.S.I. 2003/548, art. 2(d) (with sch.)

[F445AAmnesty under the Land Reform (Scotland) Act 2016S

A tenant under a short limited duration tenancy, a limited duration tenancy or a modern limited duration tenancy is entitled to compensation under section 45 if Chapter 8 of Part 10 of the Land Reform (Scotland) Act 2016 applies.]

Annotations:

Amendments (Textual)

46Payment of compensation by incoming tenantS

Subsections (2) to (5) of section 35 (payment of compensation by incoming tenant) of the 1991 Act (as read with Schedule 5 to that Act) apply to compensation which is payable or has been paid to an outgoing tenant of a short limited duration tenancy [F5, a limited duration tenancy or a modern limited duration tenancy] by the landlord under section 45(1) of this Act as they do to compensation to which that section of that Act applies, but as if—

(a)in subsection (4), paragraph (a) were omitted;

(b)in subsections (4) and (5), the references to an agricultural holding and the holding were references to the land; and

(c)in subsection (5), the words “a new” were read as “an”.

Annotations:

Amendments (Textual)

Commencement Information

I2S. 46 in force at 27.11.2003 by S.S.I. 2003/548, art. 2(d) (with Sch.)

47Amount of compensationS

(1)The amount of compensation payable to a tenant under section 45(1) is such sum as fairly represents the value of the improvement to an incoming tenant.

(2)In ascertaining the amount of compensation so payable—

(a)account is to be taken of any benefit which the landlord has agreed in writing to give the tenant in consideration of the tenant carrying out the improvement; and

(b)where a grant has been or will be made to the tenant in respect of the improvement, subject to the conditions of the grant—

(i)if either the landlord or tenant has not made or will not make a contribution towards the cost of the improvement, or neither of them has made or will make such a contribution, the grant is not to be taken into account;

(ii)in any other case, there is to be taken into account such proportion of the grant as equals the proportion of any contribution made by the tenant towards the cost of the improvement as a proportion of the total of the tenant’s contribution added to that of the landlord.

(3)In ascertaining the amount of any compensation payable by virtue of subsection (3) of section 45, account is to be taken of any injury to or deterioration of the land due to the contravention of the lease or agreement mentioned in that subsection (except insofar as the landlord has recovered damages in respect of the injury or deterioration).

48Consent required for compensation in certain casesS

Compensation under section 45(1) is not payable for an improvement specified in Part I of Schedule 5 to the 1991 Act unless, before the improvement was carried out, the landlord consented to it in writing (whether unconditionally or upon terms agreed on between the parties).

49Notice required for certain improvementsS

(1)Compensation under section 45(1) is not payable for an improvement specified in Part II of Schedule 5 to the 1991 Act unless the tenant gave notice in writing to the landlord specifying the tenant’s intention to carry out the improvement and the manner in which it was proposed to carry it out.

(2)In section 39 (approval of Land Court in certain cases) of the 1991 Act (as read with Schedule 5 to that Act), subsections (1) to (4) apply in relation to compensation under section 45(1) as they do in relation to compensation under Part IV of that Act but as if, in subsection (1) of that section—

(a)the words “a new” were omitted;

(b)the words “one month” read “60 days”; and

(c)the reference to notice under section 38(3) of that Act were a reference to the notice mentioned in subsection (1) of this section.