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Agricultural Holdings Act 1986

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Frequency of arbitration under section 12E+W

4(1)Subject to the following provisions of this Schedule, a demand for arbitration shall not be effective for the purposes of section 12 of this Act if the next termination date following the date of the demand falls earlier than the end of three years from any of the following dates, that is to say—E+W

(a)the commencement of the tenancy, or

(b)the date as from which there took effect a previous increase or reduction of rent (whether made under that section or otherwise), or

(c)the date as from which there took effect a previous direction of an arbitrator[F1or third party] under that section that the rent should continue unchanged.

(2)The following shall be disregarded for the purposes of sub-paragraph (1)(b) above—

(a)an increase of rent under section 6(3) or 8(4) of this Act;

(b)an increase of rent under subsection (1) of section 13 of this Act or such an increase as is referred to in subsection (3) of that section, or any reduction of rent agreed between the landlord and the tenant of the holding in consequence of any change in the fixed equipment provided on the holding by the landlord;

(c)a reduction of rent under section 33 of this Act.

[F2(d)an increase or reduction of rent arising from—

(i)the exercise of an option to tax under Schedule 10 to the Value Added Tax Act 1994,

(ii)the revocation of such an option, or

(iii)a change in the rate of value added tax applicable to grants of interests in or rights over land in respect of which such an option has effect.]

Textual Amendments

F1Words in Sch. 2 para. 4(1)(c) inserted (26.3.2015 for specified purposes, 26.5.2015 in so far as not already in force) by Deregulation Act 2015 (c. 20), s. 115(2)(e)(3)(a), Sch. 4 para. 25(5)

F2Sch. 2 para. 4(2)(d) inserted (21.7.2009) by Finance Act 2009 (c. 5), s. 79(1) (with s. 79(2)(3))

5(1)This paragraph applies in any case where a tenancy of an agricultural holding (“the new holding”) commences under a contract of tenancy between—E+W

(a)a person who immediately before the date of the commencement of the tenancy was entitled to a severed part of the reversionary estate in an agricultural holding (“the original holding”) in which the new holding was then comprised, and

(b)the person who immediately before that date was the tenant of the original holding,

and where the rent payable in respect of the new holding at the commencement of the tenancy of that holding represents merely the appropriate portion of the rent payable in respect of the original holding immediately before the commencement of that tenancy.

(2)In any case to which this paragraph applies—

(a)paragraph (a) of sub-paragraph (1) of paragraph 4 above shall be read as referring to the commencement of the tenancy of the original holding, and

(b)references to rent in paragraphs (b) and (c) of that sub-paragraph shall be read as references to the rent payable in respect of the original holding,

until the first occasion following the commencement of the tenancy of the new holding on which any such increase or reduction of, or direction with respect to, the rent of the new holding as is mentioned in paragraph (b) or (c) takes effect.

6E+WWhere under an agreement between the landlord and the tenant of the holding (not being an agreement expressed to take effect as a new contract of tenancy between the parties) provision is made for adjustment of the boundaries of the holding or for any other variation of the terms of the tenancy, exclusive of those relating to rent, then, unless the agreement otherwise provides—

(a)that provision shall for the purposes of sub-paragraph (1) of paragraph 4 above be treated as not operating to terminate the tenancy, and accordingly as not resulting in the commencement of a new contract of tenancy between the parties, and

(b)any increase or reduction of rent solely attributable to any such adjustment or variation as aforesaid shall be disregarded for the purposes of paragraph (b) of that sub-paragraph.

[F37(1)This paragraph applies in any case where—E+W

(a)a tenancy of an agricultural holding (the new tenancy) is granted to a person who, immediately before the grant of the new tenancy, was the tenant of the holding, or of any agricultural holding which comprised the whole or a substantial part of the land comprised in the holding, under a contract of tenancy (“the previous tenancy”),

(b)this Act applies in relation to the new tenancy by virtue of section 4(1)(g) of the Agricultural Tenancies Act 1995, and

(c)the rent payable under the new tenancy is unchanged from that payable under the previous tenancy, disregarding any increase or reduction in rent solely attributable to an adjustment of the boundaries of the holding.

(2)The reference in sub-paragraph (1) above to a substantial part of the land comprised in the holding means a substantial part determined by reference to either area or value.

(3)In any case to which this paragraph applies—

(a)paragraph (a) of sub-paragraph (1) of paragraph 4 above shall be read as referring to the commencement of the previous tenancy, and

(b)references to rent in paragraphs (b) and (c) of that sub-paragraph shall be read as references to the rent payable under the previous tenancy,

until the first occasion following the commencement of the new tenancy on which any such increase or reduction of, or direction with respect to, the rent payable under the new tenancy as is mentioned in paragraph (b) or (c) takes effect.]

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