The Agricultural Holdings (Relinquishment and Assignation) (Scotland) Regulations 2020

EXPLANATORY NOTE

(This note is not part of the Regulations)

Section 110 of the Land Reform (Scotland) Act 2016 inserted a new Part 3A into the Agricultural Holdings (Scotland) Act 1991 (“the 1991 Act”) to provide for a process whereby a 1991 Act tenant can relinquish their tenancy to the landlord in exchange for compensation or, if the landlord does not buy them out, can assign the tenancy to a new entrant or person progressing in farming for the tenancy’s market value (referred to in this note as “the Part 3A process”).

These Regulations make provision in connection with the right of tenant farmers to make use of the Part 3A process by setting out the procedures to be followed and the persons who are eligible to take an assignation as a new entrant to or person progressing in farming.

Part 1 of these Regulations deals with citation, commencement and interpretation of the Regulations.

Part 2 of these Regulations concerns the tenant’s offer to the landlord to relinquish the tenancy under section 32C(1) of the 1991 Act.

Regulation 2 provides that the notice must be in the form specified in schedule 1 and must include or be accompanied by information where specified in that schedule.

Regulation 3 sets out the specification for any maps, plans or drawings to accompany the notice.

Part 3 of these Regulations concerns the landlord’s acceptance of the tenant’s notice of intention to relinquish.

Regulation 4 provides that a notice intimating acceptance of the tenant’s notice to relinquish must be in the form specified in schedule 2 and must include or be accompanied by information where specified in the schedule.

Regulation 5 provides that where the tenant is a relevant limited partnership falling within the definition in regulation 2 of the Agricultural Holdings (Relinquishment and Assignation) (Application to Relevant Partnerships) (Scotland) Regulations 2020, the notice intimating acceptance of the tenant’s notice to relinquish must be in the form specified in schedule 3 and must include or be accompanied by information where specified in the schedule.

Part 4 concerns the appointment of a valuer by the Tenant Farming Commissioner.

Regulation 6 appoints the period within which the Tenant Farming Commissioner must appoint a valuer as within 28 days beginning with the date of receipt of the notice under section 32G(1) of the 1991 Act.

Part 5 concerns the definition of a new entrant to or person progressing in farming in terms of section 32B of the 1991 Act.

Regulation 7 sets out the definitions to be used in the interpretation of Part 5.

Regulation 8 defines the individuals who will qualify as new entrants to farming for the purposes of section 32U of the 1991 Act.

Regulation 9 makes further provision as to the circumstances in which an individual will be considered to be a new entrant to farming.

Regulation 10 defines the individuals who will qualify as persons progressing in farming for the purposes of section 32U of the 1991 Act.

Regulation 11 makes further provision as to the circumstances in which an individual will be considered to be a person progressing in farming.

A Business Regulatory Impact Assessment and Equalities Impact Assessment have been prepared and placed in the Scottish Parliament Information Centre. Copies of the Business Regulatory Impact Assessment and Equalities Impact Assessment are available from Scottish Government, Victoria Quay, Leith, Edinburgh EH6 6QQ and online atwww.legislation.gov.uk