Land Reform (Scotland) Act 2025

Prospective

33 Standard claim procedure S

(1) The Agricultural Holdings (Scotland) Act 2003 is modified as follows.

(2) After section 59A insert—

“59B Standard claim procedure

(1) The Scottish Ministers may by regulations apply the standard claim procedure set out in schedule 3 to any relevant type of compensation.

(2) Without limit to the generality of section 91(2), regulations under subsection (1) may—

(a) apply the standard claim procedure with such modifications as the Scottish Ministers consider appropriate for the relevant type of compensation,

(b) modify any enactment mentioned in subsection (3) to adjust or remove any notification requirement, time limit or other procedural aspect provided for in respect of making or responding to a claim for such compensation,

(c) specify any matter which must be taken into account, to which regard is to be had or, as the case may be, which is to be disregarded in assessing the value of the relevant type of compensation,

(d) make transitional or transitory provision in respect of ongoing claims for the relevant type of compensation.

(3) For the purposes of this section, a “relevant type of compensation” is a type of compensation to which a party to a lease of agricultural land is entitled under—

(a) a provision of the 1991 Act,

(b) a provision of this Act,

(c) any other enactment which confers a right to compensation under a 1991 Act tenancy, a short limited duration tenancy, a limited duration tenancy, modern limited duration tenancy or a repairing tenancy.

(4) The Scottish Ministers may by regulations modify the standard claim procedure set out in schedule 3.”.

(3) In section 91 (orders and regulations), in subsection (4)(b), after “59A,” insert “59B(1) or (4),”.

(4) After schedule 2 (as inserted by section 21(6) of this Act) insert—

“Schedule 3 S Standard claim procedure

(introduced by section 59B)

Part 1 S Interpretation

Interpretation

1 In this schedule, unless the context otherwise requires—

• “claim” means a claim for a type of compensation to which this procedure applies,

• “claimant” means the person making a claim for compensation,

• “Commissioner” means the Tenant Farming Commissioner,

• “holding” means the land comprised in the lease (or such part of that land as is relevant for the purposes of the claim),

• “relevant date” means—

  (a)

  the date on which the event giving rise to the entitlement to compensation occurs (for example, the date on which the tenancy terminates), or

  (b)

  such other date as may be specified in the regulations applying the standard claim procedure to the type of compensation,

• “respondent” means the person who is (or may be) liable to pay compensation,

• “valuer” means a person appointed under paragraph 3(2), 4(2) or 6(5)(b) or, as the case may be, by agreement between the claimant and the respondent.

Part 2 S Notice of claim and appointment of valuer

Notice of claim

2 (1) A claimant must give notification of a claim to the respondent not less than 9 months before the relevant date.

(2) The notice of claim must—

(a) specify what type (or types) of compensation is being claimed,

(b) describe the holding including, in particular, its name, address and boundaries,

(c) provide details of the tenancy including, in particular—

(i) the landlord and tenant,

(ii) the term date,

(iii) the current rent,

(iv) the date on which the rent could next be reviewed,

(d) if relevant to the claim, include details of—

(i) any improvements carried out by the tenant for which compensation is or may be payable by virtue of section 34 of the 1991 Act or, as the case may be, section 45 of this Act, and

(ii) any non-agricultural use (see Part 3) permitted under sections 40 to 42 of this Act,

(e) nominate a person who appears to the claimant to meet the requirements to be a valuer mentioned in paragraph 5, and

(f) contain any other information specified by the regulations which apply the standard claim procedure to the type of compensation being claimed.

(3) A failure by a claimant to give notice to the respondent in accordance with this paragraph does not extinguish the right of the claimant to a relevant type of compensation provided—

(a) the claimant has a reasonable excuse for the failure, and

(b) the claimant remedied the failure as soon as reasonably practicable.

Objection to claimant’s nominated valuer

3 (1) If the respondent objects to the person nominated as valuer in the notice of claim, the respondent must, within the period of 14 days beginning with the day on which the respondent is given the notice—

(a) give the claimant notice of the objection,

(b) provide a copy of the notice of claim and the notice of objection to the Commissioner, and

(c) request that the Commissioner appoint a person as valuer under paragraph 4.

(2) Where—

(a) the claimant is not given a notice of objection under sub-paragraph (1), or

(b) any other requirement of that sub-paragraph is not complied with,

the claimant may appoint the nominated person as valuer.

(3) Sub-paragraph (2) does not apply where the claimant and the respondent agree to appoint a different person as valuer.

Appointment of valuer by Commissioner

4 (1) This paragraph applies where the Commissioner receives a request to appoint a valuer.

(2) The Commissioner must, within the period of 28 days beginning with the date on which notice of the request is given, appoint a person, who appears to the Commissioner to meet the requirements mentioned in paragraph 5, to—

(a) carry out the assessment mentioned in paragraph 8(1), and

(b) calculate the amount to be payable by the respondent to the claimant as compensation.

(3) The Commissioner must give notice to the claimant and the respondent of the name and address of the person appointed under sub-paragraph (2).

Requirements for a person to be appointed a valuer

5 The requirements referred to in paragraph 2(2)(e) and 4(2) are that the person—

(a) is independent of the claimant and the respondent, and

(b) possesses qualifications, knowledge and experience suitable for assessing the—

(i) value of agricultural land, both with vacant possession and where subject to agricultural holdings, and

(ii) compensation that may be payable to tenants and landlords of such holdings.

Objection to valuer appointed by the Commissioner

6 (1) This paragraph applies where the claimant or the respondent objects to the person appointed as valuer by the Commissioner on one or more of the grounds mentioned in sub-paragraph (2).

(2) The grounds are that the person—

(a) is not independent of the respondent or, as the case may be, the claimant, or

(b) does not possess the qualifications, knowledge and experience mentioned in paragraph 5(b).

(3) The claimant or, as the case may be, the respondent may apply to the Land Court to appoint a person as the valuer in place of the person appointed by the Commissioner.

(4) An application under sub-paragraph (3)—

(a) must—

(i) be made before the expiry of the period of 14 days beginning with the date of the notice under paragraph 4(3), and

(ii) state the ground of objection to the person appointed by the Commissioner, and

(b) may propose a person to be appointed as the valuer in place of that person.

(5) The Land Court may, on an application under sub-paragraph (3)—

(a) reject the objection, or

(b) appoint a person as the valuer (whether a person proposed in the application or not).

(6) The decision of the Land Court on an application under sub-paragraph (3) is final.

Valuer’s expenses

7 Unless otherwise ordered by the Land Court, the claimant and respondent are each liable for half of the valuer’s expenses.

Part 3 S Assessment of value of claim

Assessment of value of claim

8 (1) The valuer is to assess the value of the claim as at the relevant date.

(2) In carrying out an assessment, the valuer is to take into account, have regard to or, as the case may be, disregard—

(a) any matter which is relevant to the type of compensation being claimed that is set out in an enactment conferring the right to compensation, and

(b) any matter specified in the regulations applying the standard claim procedure to the type of compensation being claimed.

(3) The valuer is—

(a) to invite the claimant and the respondent to make written representations about the value of the claim and any relevant matters, and

(b) to have regard to any such representations.

Preliminary report on value of claim

9 (1) The valuer must, not less than 5 months before the relevant date—

(a) prepare a report on the assessment of value of the claim (“the preliminary report”), and

(b) send a copy of the preliminary report to the claimant and the respondent.

(2) The preliminary report must include—

(a) the valuer’s assessment of the value of the claim,

(b) the matters that the valuer took into account, had regard to or, as the case may be, disregarded when assessing the value of the claim,

(c) details of how the valuer has arrived at the value of the claim, and

(d) details of any part of the assessment which the valuer considers may change between the date of the preliminary report and the payment date and an explanation as to why the valuer considers this may change.

(3) The report may also contain or be accompanied by any other information that the valuer considers appropriate.

Final report on value of claim

10 (1) The valuer must, not less than 3 months before the relevant date—

(a) prepare an updated report on the assessment of value of the claim (“the final report”), and

(b) send a copy of the final report to the claimant, the respondent and the Commissioner.

(2) The final report must include—

(a) the valuer’s assessment of the value of the claim,

(b) the matters that the valuer took into account, had regard to or, as the case may be, disregarded when assessing the value of the claim,

(c) details of how the valuer has arrived at the value of the claim, and

(d) details of any part of the assessment which the valuer has adjusted since the preparation of the preliminary report and an explanation of why that adjustment as been made.

(3) The report may also contain or be accompanied by any other information that the valuer considers appropriate.

Powers of valuer

11 (1) The valuer may, for the purposes of this schedule—

(a) at reasonable times and having given reasonable notice, enter onto and inspect—

(i) the holding, and

(ii) any other land which is owned or occupied by the claimant or respondent and which is relevant to the assessment, and

(b) make any reasonable request of the claimant and respondent (with which they must comply).

(2) In the event that the claimant or, as the case may be, respondent does not provide entry to the valuer, respond to a request of the valuer or otherwise seeks to obstruct or delay the valuation, the valuer may—

(a) apply to the Land Court for an order requiring the relevant party to comply, and

(b) recover the cost of doing so from the party.

(3) A valuer is not to be held to be in breach of a requirement of this schedule where such breach arises as a result of the actions of the claimant or the respondent.

Part 4 S Payment and rights of appeal

Amount and time of payment

12 (1) The amount payable by the respondent to the claimant is the assessed value of the claim and any amount payable in respect of interest under section 59C.

(2) Payment is to be made not later than—

(a) two months after the relevant date, or

(b) in a case where there is an appeal to the Lands Tribunal under paragraph 13, such date as may be specified by the Lands Tribunal.

(3) For the purposes of this paragraph, “the assessed value of the claim” is the value of the claim—

(a) as assessed by the valuer under paragraph 10, or

(b) in a case where a matter has been appealed to the Lands Tribunal, the value as determined by the Lands Tribunal (which includes a decision upholding the valuer’s assessment).

Appeal to Lands Tribunal against valuer’s assessment

13 (1) The claimant or the respondent may appeal to the Lands Tribunal in respect of anything contained in the final report.

(2) An appeal under this section must—

(a) state the grounds on which it is being made, and

(b) be lodged before the expiry of the period of 21 days beginning with the date the final report was sent.

(3) The Lands Tribunal may—

(a) reassess the value mentioned in paragraph 8(1) (and any matter affecting the value), and

(b) determine the amount to be payable by the respondent to the claimant in respect of the claim.

(4) The valuer whose assessment is appealed against may be a witness in the appeal proceedings.

(5) In the appeal proceedings, in addition to the respondent and the claimant, the following persons are entitled to be heard—

(a) where the landlord is a creditor in a standard security, the owner of the land,

(b) where the landlord is the owner of the land, any creditor in a standard security over the land or any part of it.

(6) The Lands Tribunal is to give written reasons for its decision on an appeal under this section.

(7) The decision of the Lands Tribunal in an appeal under this section is final.

Referral of certain matters by Lands Tribunal to Land Court

14 Where, in an appeal before the Lands Tribunal under paragraph 13, an issue of law arises which may competently be determined by the Land Court by virtue of the 1991 Act or this Act, the Tribunal is to refer the issue to the Land Court for determination unless the Tribunal considers that it is not appropriate to do so.”.

Commencement Information

I1 S. 33 not in force at Royal Assent, see s. 47(2)