Agricultural Tenancies Act 1995

16 After section 25 of that Act, there shall be inserted—

“25A Tenant’s right to compensation for improvements etc.: farm business tenancies.

(1) The provisions of this section shall have effect where—

(a) any part of the land comprised in a compulsory rights order is held, immediately before the date of entry, under a farm business tenancy;

(b) there have been provided in relation to the land which is both so comprised and so held (“the tenant”s land') tenant’s improvements in respect of which, immediately before that date, the tenant had a prospective right to compensation under section 16 of the Act of 1995 on quitting the holding on the termination of the tenancy;

(c) at the end of the period of occupation, the tenant’s land has lost the benefit of any such improvement; and

(d) immediately after the end of that period, the tenant’s land is comprised in the same tenancy as immediately before the date of entry, or is comprised in a subsequent farm business tenancy at the end of which the tenant is not deprived, by virtue of section 23(3) of that Act, of his right to compensation under section 16 of that Act in respect of any tenant’s improvement provided during the earlier tenancy in relation to the tenant’s land.

(2) For the purposes of subsection (1) of this section, subsection (2) of section 22 of the Act of 1995 (which requires notice to be given of the intention to make a claim) shall be disregarded.

(3) Subject to subsection (4) of this section, Part III of the Act of 1995 shall apply as if—

(a) the tenant’s land were in the state in which it was immediately before the date of entry, and

(b) the tenancy under which that land is held at the end of the period of occupation had terminated immediately after the end of that period and the tenant had then quitted the holding.

(4) Where the tenant’s land has lost the benefit of some tenant’s improvements but has not lost the benefit of all of them, Part III of the Act of 1995 shall apply as mentioned in subsection (3) above, but as if the improvements of which the tenant’s land has not lost the benefit had not been tenant’s improvements.

(5) For the purposes of subsections (1) and (4) of this section, the tenant’s land shall be taken to have lost the benefit of a tenant’s improvement if the benefit of that improvement has been lost (wholly or in part) without being replaced by another improvement of comparable benefit to the land.

(6) In this section “holding”, in relation to a farm business tenancy, “tenant’s improvement”, “termination”, in relation to a tenancy, and references to the provision of a tenant’s improvement have the same meaning as in the Act of 1995.

(7) This section does not extend to Scotland.”