Land Reform (Scotland) Act 2025

Prospective

4 Lotting of large land holding S

(1) The Land Reform (Scotland) Act 2003 is modified as follows.

(2) After Part 2 insert—

“Part 2A S Lotting of large land holdings

Chapter 1 S Prohibitions on transfer

The prohibitions S

67C Prohibition on transfer without lotting decision

A purported transfer of land by the owner, or a creditor in a standard security having a right to sell the land, is of no effect if—

(a) section 67H applies to the land,

(b) the purported transfer is not an exempt transfer, and

(c) no lotting decision is in effect in relation to the land.

67D Prohibition on transfer contrary to lotting decision

(1) A purported transfer of land by the owner, or a creditor in a standard security having a right to sell the land, is of no effect if—

(a) a lotting decision is in effect in relation to the land which states that the land (or any part of it) may only be transferred in lots specified in the decision,

(b) the purported transfer is not an exempt transfer, and

(c) either—

(i) the purported transfer is of an area that does not correspond to a lot specified in the lotting decision, or

(ii) the purported transfer would result in the same person or connected persons owning more than one of the lots specified in the lotting decision.

(2) But subsection (1) does not prevent the transfer of a part of a lot specified in a lotting decision if Ministers give their approval to the transfer.

Anti-avoidance S

67E Requirement for declaration of compliance with Part

(1) Where land to which section 67H applies is being transferred, the transferor is to incorporate in the deed giving effect to the transfer a declaration in prescribed form confirming that the transfer is not in contravention of any prohibition under this Part.

(2) A declaration under subsection (1) is not required if a declaration under section 67F is required in relation to the land being transferred.

67F Requirement to explain exemption to prohibitions in transfer deed

(1) A deed giving effect to a transfer of land is to include a declaration in accordance with this section where the transfer would be of no effect by virtue of section 67C or 67D but for its being an exempt transfer.

(2) A declaration in accordance with this section is one that—

(a) specifies which provision of subsection (4) of section 40 operates so as to make the transfer one to which section 67C or, as the case may be, 67D does not apply, and

(b) where the provision so specified is paragraph (a), (e) or (h) of that subsection, stating that the transfer does not form part of a scheme or arrangement, and is not one of a series, the main purpose or effect, or one or the main purposes or effects, of which is the avoidance of the requirements or consequences of this Part.

Key concepts S

67G Lotting decision

(1) In this Part—

(a) a reference to a lotting decision is to a decision by Ministers under section 67N, 67O or 67T about whether land is to be transferred in lots,

(b) a reference to the land to which a lotting decision relates refers not only to the whole area of land that the decision states need not be lotted or, as the case may be, may only be transferred in lots, but also to any part of that area.

(2) A lotting decision stating that land need not be lotted comes into effect on the day after the day it is made.

(3) A lotting decision stating that land may only be transferred in lots comes into effect—

(a) where no appeal against it is made under section 67W, on the day after the expiry of the period specified in section 67W(3),

(b) where an appeal against it is made under section 67W, on the day the appeal is finally determined or withdrawn.

(4) A lotting decision ceases to have effect in relation to an area of land when any of the following occurs—

(a) ownership of the area is transferred to a person who is not connected to the person transferring it,

(b) the applicable period expires,

(c) the decision is withdrawn under section 67R(2)(a),

(d) the decision is quashed following an appeal under section 67W.

(5) In subsection (4), “the applicable period” means a period beginning with the lotting decision coming into effect and ending—

(a) in the case of a lotting decision under section 67N, 1 year later,

(b) in the case of a lotting decision under section 67O or 67T, 5 years later.

67H Land affected by section 67C prohibition

(1) This section applies to land to which subsection (2) or (3) applies.

(2) This subsection applies to land that exceeds 1,000 hectares in area.

(3) This subsection applies to land if—

(a) it exceeds 50 hectares in area,

(b) it forms part of a large holding of land,

(c) notice of intention to transfer another part, or parts, of the large holding has been given, and

(d) the total area of the following exceeds 1,000 hectares—

(i) the area of the land in question, and

(ii) the area of the other part, or parts, of the large holding in respect of which notice of intention to transfer has been given, disregarding any area in respect of which missives have concluded since notice of intention to transfer the area (or an area of which it forms part) was given.

(4) In this section—

• “land” includes—

  (a)

  the foreshore, that is to say, the land between the high and low water marks of ordinary spring tides, and

  (b)

  other land covered with water except the seabed,

• “notice of intention to transfer” means a notice under section 46C or 48.

67I Large holding of land

(1) In section 67H(3), a “large holding of land” means—

(a) a single holding, or

(b) a composite holding,

that exceeds 1,000 hectares in area.

(2) For the purposes of this section—

(a) a single holding is the whole of a contiguous area of land in the ownership of one person or set of persons,

(b) two or more single holdings form a composite holding if the conditions in subsection (3) are met.

(3) The conditions referred to in subsection (2)(b) are that—

(a) each of the single holdings in question is contiguous with at least one of the others, and

(b) the owner of one single holding (“holding A”)—

(i) is an owner, or connected to the owner, of another single holding (“holding B”) with which holding A is contiguous, and

(ii) where there are more than two single holdings, is also the owner of, or connected to the owner of, every other single holding.

(4) For the purposes of subsection (2)(a), an area of land is to be treated as being contiguous with another if any part of the area is within 250 metres of any part of the other.

(5) For the purposes of subsection (3)—

(a) a holding is contiguous with another if a boundary of the holding is (wholly or partly) contiguous with a boundary of the other,

(b) a boundary of a holding is to be treated as being contiguous with a boundary of another if any part of the boundary is within 250 metres of the other,

(c) references to the owner of a holding, in a case where the holding is owned by more than one person (whether jointly or in common), are to be read as references to an owner of the holding.

67J Connected persons

(1) Whether a person is connected to another for the purposes of the provisions mentioned in subsection (2) is to be determined in accordance with schedule 1A.

(2) The provisions referred to in subsection (1) are sections 67D(1)(c), 67G(4) and 67I(3)(b).

67K Exempt transfer

A transfer of a kind mentioned in section 40(4) is an exempt transfer for the purposes of sections 67C and 67D.

Chapter 2 S Process for making lotting decision

67L Ministers’ duty to make lotting decision

(1) Ministers are to make a lotting decision in respect of land under section 67N or 67O where—

(a) they receive a valid application asking them to make one,

(b) a lotting decision in respect of the land is quashed following an appeal under section 67W.

(2) For the purposes of this section, an application is valid if—

(a) it is made by—

(i) the owner of the land in respect of which the application asks for a lotting decision,

(ii) the owner of part of that land where it forms part of a composite holding for the purposes of section 67I, or

(iii) a creditor in a standard security having a right to sell the land in respect of which the application asks for a lotting decision,

(b) it is made in the prescribed manner, and

(c) it does not ask for a lotting decision to be made in respect of land that is (in whole or in part) land in respect of which—

(i) a lotting decision is in effect, or

(ii) another application asking for a lotting decision is being considered.

67M Request for Ministers not to make lotting decision

(1) Ministers’ duty to make a lotting decision in respect of land under section 67L ceases to apply if they receive a valid request asking them not to make a lotting decision in respect of the land.

(2) If, when Ministers cease to be required to make a lotting decision in respect of land by virtue of subsection (1), they had requested but not yet received a report in relation to the land under section 67P, they are to instruct the Commissioner to stop preparing it.

(3) For the purposes of this section, a request asking Ministers not to make a lotting decision is valid if—

(a) it is made by—

(i) the owner of the land in respect of which the application asks for a lotting decision,

(ii) the owner of part of that land where it forms part of a composite holding for the purposes of section 67I, or

(iii) a creditor in a standard security having a right to sell the land in respect of which the application asks for a lotting decision, and

(b) it is made in the prescribed manner.

67N Expedited lotting decision where owner facing hardship

(1) Ministers may make a lotting decision under this section stating that land need not be transferred in lots if they are satisfied that—

(a) the owner of the land (or any part of it) wants to transfer it in order to alleviate, or avoid, financial hardship, and

(b) having to wait for a lotting decision under section 67O is likely to cause, or worsen, financial hardship for the owner.

(2) A lotting decision may be made under this section only if a valid request to consider doing so has been made to Ministers.

(3) If, when Ministers make a lotting decision in respect of land under this section, they had requested but not yet received a report in relation to the land under section 67P, they are to instruct the Commissioner to stop preparing it.

(4) For the purposes of this section, a request to consider making a lotting decision under this section is valid if—

(a) it is made by the owner, and

(b) it is made in the prescribed manner.

67O Ministerial lotting decision

(1) Ministers may make a lotting decision under this section stating that land may only be transferred in lots only if they consider that it is in the public interest to do so.

(2) A lotting decision will not be in the public interest for the purpose of subsection (1) unless Ministers are satisfied that ownership of the land being transferred in accordance with the decision would be more likely to lead to its being used (in whole or in part) in ways that might make a community in the vicinity of the land more sustainable than would be the case if all of the land were transferred to the same person.

(3) A lotting decision under this section stating that land may only be transferred in lots must—

(a) specify those lots,

(b) provide a statement of reasons as to why Ministers consider the decision is in the public interest.

(4) If Ministers decide not to make a lotting decision stating that land may only be transferred in lots, they must make a lotting decision under this section stating that the land need not be transferred in lots.

(5) Ministers may not make any lotting decision in respect of land under this section without requesting, and taking into account, a report under section 67P in relation to the land.

(6) In considering for the purposes of this section the effect that a decision stating that land may only be transferred in lots might have on a community in the vicinity of the land, Ministers must have particular regard to the extent to which ownership of land in the community’s vicinity is concentrated.

(7) Ministers must make a lotting decision under this section before the expiry of the period of 6 months beginning with the day on which a valid application under section 67L is received.

(8) Any failure to comply with the time limit specified in subsection (7) does not affect the validity of anything done by Ministers under this section.

67P Report by Land and Communities Commissioner

(1) The Land and Communities Commissioner must, when requested to do so by Ministers, prepare and provide them with a report to inform their making of a lotting decision in respect of land under section 67O.

(2) The Commissioner is to prepare the report in accordance with any instructions given by Ministers.

(3) As well as to Ministers, the Commissioner must send a copy of a report prepared under this section to—

(a) the person who applied for the lotting decision in connection with which the report is prepared, or

(b) in a case where the report is prepared in connection with a lotting decision that is to be made because a previous lotting decision was quashed, the person who applied for the previous decision.

(4) In this section, “the Land and Communities Commissioner” means the person appointed to that office under section 10(1) of the Land Reform (Scotland) Act 2016.

67Q Guidance on lotting decisions

(1) Ministers must issue guidance about making lotting decisions under section 67O.

(2) Guidance issued under subsection (1) must, in particular, include information about—

(a) how Ministers expect the process of making a lotting decision to operate in practice,

(b) how Ministers will take land being occupied as a croft or a tenancy for agricultural or cultivational purposes into consideration in making a lotting decision,

(c) circumstances in which Ministers are to instruct the Land and Communities Commissioner to carry out an initial review of an application and provide a report as soon as is practicable,

(d) other circumstances in which a report is to be provided by the Commissioner on the basis of an initial review of an application when instructed by Ministers.

(3) In preparing guidance under subsection (1), Ministers must have regard to the public interest.

(4) For the purposes of subsection (3), “the public interest” includes the desirability of—

(a) achieving a more diverse ownership of land, including more community ownership of land,

(b) furthering sustainable development,

(c) securing a greater proportion of community owned energy,

(d) advancing community wealth building,

(e) ensuring an adequate supply of affordable housing and of workspace for employment.

(5) Before issuing guidance under subsection (1), Ministers must consult—

(a) the Land and Communities Commissioner, and

(b) such other persons as they consider appropriate.

(6) Ministers must make publicly available the latest version of any guidance issued under subsection (1) as soon as practicable after issuing it.

Chapter 3 S Review of lotting decision

67R Ministers’ duty to review lotting decision

(1) Ministers are to review a lotting decision that is in effect in relation to land where they receive a valid application asking them to do so.

(2) Following a review, Ministers—

(a) must, before the expiry of the period of 3 months beginning with the day the application asking for the review was received, either—

(i) confirm the lotting decision, or

(ii) withdraw the lotting decision and make a new one under section 67T, and

(b) may offer to buy, in accordance with section 67U and any regulations made under it, one or more of the lots specified in the lotting decision.

(3) Any failure to comply with the time limit specified in subsection (2)(a) does not affect the validity of anything done by Ministers under this section or section 67T.

(4) For the purposes of this section, an application is valid if—

(a) it is made by the owner of, or a creditor in a standard security having a right to sell, land to which the lotting decision relates,

(b) it is made in the prescribed manner, and

(c) it is made—

(i) in the case of the first application to ask for a review of the lotting decision, more than one year after the decision was made, or

(ii) in any other case, more than one year after Ministers received the last application to review the lotting decision.

67S Request for Ministers to stop review

(1) Ministers’ duty to review a lotting decision in respect of land under section 67R ceases to apply if they receive a valid request asking them to stop the review.

(2) For the purposes of this section, a request asking Ministers to stop reviewing a lotting decision is valid if—

(a) it is made by the owner of, or a creditor in a standard security having a right to sell, the land to which the lotting decision relates, and

(b) it is made in the prescribed manner.

67T Replacement lotting decision following review

(1) A new lotting decision under this section is to relate to the land to which the original lotting decision relates at the time the new decision is made.

(2) The original lotting decision is to be treated as withdrawn on the day that the new decision comes into effect.

(3) In subsections (1) and (2), “the original lotting decision” means the decision that is the subject of the review following which the decision under this section is made.

(4) A lotting decision under this section may state either that land—

(a) may only be transferred in lots, or

(b) need not be transferred in lots.

(5) Subsections (1), (2), (3) and (6) of section 67O apply to the making of a lotting decision under this section as they do to the making of a lotting decision under that section.

(7) Before making a lotting decision under this section, Ministers are to consider whether it would be appropriate to seek advice from a person who appears to them to be suitably qualified, independent and to have knowledge and experience of the transfer of land of a kind which is similar to the land to which the lotting decision would relate.

67U Offer to buy following review

(1) Ministers may offer to buy land under section 67R(2)(b) following a review of a lotting decision only if they are satisfied that it is likely that the fact that the land has not been transferred since the lotting decision was made is attributable to the land being less commercially attractive than it would have been had the lotting decision not prevented its being transferred along with other land.

(2) If Ministers offer to buy land under section 67R(2)(b) it may only be at the price determined to be appropriate—

(a) by the appointed valuer, or

(b) by the Lands Tribunal on an appeal against the appointed valuer’s determination of the appropriate price by a person to whom Ministers made an offer at that price.

(3) An appeal under subsection (2)(b) may not be made after the expiry of the period of 21 days beginning with the day after the day on which Ministers made the offer to buy at the price determined by the appointed valuer.

(4) If, in an appeal under subsection (2)(b), the Tribunal determines a higher appropriate price than the appointed valuer did, Ministers must make another offer to buy at the price determined by the Tribunal.

(5) In this section, “the appointed valuer” means a person appointed by Ministers who appears to them to be suitably qualified, independent and to have knowledge and experience of valuing land of a kind that is similar to the land in respect of which the offer would be made.

(6) Ministers may by regulations make further provision about buying land under section 67R(2)(b), including about how land is to be valued for the purpose of subsection (2).

(7) Ministers must, before laying a draft of any regulations under this section, consult such persons as they consider appropriate.

67V Specific request that Ministers consider making offer to buy

(1) During a review of a lotting decision, a request to Ministers to consider offering to buy land to which the lotting decision relates may be made in a prescribed manner by the owner of the land or a creditor in a standard security with a right to sell the land.

(2) Having received such a request in relation to land, Ministers must—

(a) decide whether they are satisfied about the matter mentioned in section 67U(1) in relation to the land, and

(b) if they decide that they are not, give reasons for that decision in writing to the person who made the request.

(3) A person to whom Ministers give reasons for a decision in accordance with subsection (2) may appeal to the Lands Tribunal against the decision.

(4) An appeal under subsection (3) may not be made after the expiry of the period of 21 days beginning with the day after the day on which the person making it is given the Ministers’ reasons for the decision in question.

(5) If, in an appeal under subsection (3), the Tribunal determines that Ministers are entitled to be satisfied about the matter mentioned in section 67U(1) in relation to an area of land, Ministers are deemed to be satisfied about the matter and (on that basis) must consider making an offer to buy the land under section 67R(2)(b).

Chapter 4 S Appeal against lotting decision

67W Appeal against decision that land may only be transferred in lots

(1) The owner of land or a creditor in a standard security with a right to sell land may appeal to the Court of Session against a lotting decision stating that the land (or land of which it forms part) may only be transferred in lots.

(2) An appeal under this section may be made on the ground that the lotting decision—

(a) is based on an error of fact,

(b) is based on an error of law, or

(c) is unreasonable.

(3) An appeal under this section may not be made after the expiry of the period of 28 days beginning with the day after the day on which the lotting decision was made.

(4) In an appeal under this section, the Court may—

(a) uphold the lotting decision, or

(b) quash the lotting decision (in which event Ministers are to make another in accordance with section 67L).

Chapter 5 S Compensation

67X Compensation

(1) An owner of land or a creditor in a standard security with a right to sell land is entitled to compensation from Ministers for loss or expense that is—

(a) incurred in complying with the procedural requirements of this Part in connection with the land,

(b) attributable to a potential transfer of the land being prevented by section 67C, or

(c) attributable to a lotting decision stating that the land may only be transferred in lots.

(2) The amount of compensation payable under this section to fully compensate a person for loss or expense of a kind mentioned in subsection (1) is to be determined by—

(a) Ministers, or

(b) the Lands Tribunal on an appeal against Ministers’ determination by the person seeking compensation.

(3) An appeal under subsection (2)(b) against a determination by Ministers must be made before the expiry of the period of 28 days beginning with the day that the appellant receives Ministers’ determination.

(4) Ministers are by regulations to make further provision about compensation under this section, including about—

(a) how claims for compensation to them are to be made, and

(b) how the amount of compensation payable is to be determined by them or on their behalf.

(5) Ministers must, before laying a draft of regulations under this section, consult such persons as they consider appropriate.

Chapter 6 S Further provision for Part 2A

67Y Notice of lotting decisions

Having made a lotting decision, Ministers must—

(a) give a copy of it to—

(i) the owner of the land to which it relates, and

(ii) any creditor in a standard security over an interest in the land,

(b) inform of the decision any person whose wish to be notified of possible transfers of the land (or any area it wholly or partly subsumes or is subsumed by) is recorded in the list kept in accordance with section 46A.

67Z Construction of references to creditor with right to sell

A reference in this Part to a creditor in a standard security with a right to sell land is to be construed in accordance with section 67(3).

67Z1 Powers to modify Part and schedule 1A

(1) Ministers may by regulations modify this Part and schedule 1A so as to change (or clarify)—

(a) what constitutes an exempt transfer for the purposes of sections 67C and 67D,

(b) the land to which section 67H applies,

(c) the duration of “the applicable period” as defined by section 67G(5),

(d) the period mentioned in section 67O(7),

(e) the period mentioned in section 67T(8),

(f) the period specified in section 67R(4)(c).

(2) Ministers must, before laying a draft of any regulations under this section, consult such persons as they consider appropriate.”.

Commencement Information

I1 S. 4 not in force at Royal Assent, see s. 47(2)