Land Reform (Scotland) Act 2025

2025 asp 15

An Act of the Scottish Parliament to make provision about the management and transfer of large holdings of land; to require the Scottish Ministers to make publicly available a model lease for environmental purposes; to modify the law on small landholdings and agricultural holdings; and for connected purposes.

Enacted The Bill for this Act of the Scottish Parliament was passed by the Parliament on 5th November 2025 and received Royal Assent on 16th December 2025

Part 1 Land reform¶

Chapter 1 Large land holdings: Management and transfer of ownership¶

^I11 Community-engagement obligations in relation to large land holding¶

1 The Land Reform (Scotland) Act 2016 is modified as follows.

2 The title of Part 4 becomes “Community engagement in relation to land”.

3 Before section 44 insert—

4 After section 44 insert—

Chapter 2 Community-engagement obligations for owners of large land holdings

Creation of obligations

44A Power to impose obligations by regulations

1 The Scottish Ministers may by regulations impose obligations on the owner of land for the purpose of promoting community engagement in relation to the land.

2 Without prejudice to the generality of the power conferred by this section, the Scottish Ministers must exercise it to impose obligations in accordance with sections 44C, 44D and 44E.

3 Regulations under this section may impose obligations only in connection with land to which section 44F applies.

4 Regulations under this section are to be informed by the land rights and responsibilities statement published in accordance with Part 1.

5 The Scottish Ministers must, before laying a draft of any regulations under this section, consult—

a the Land and Communities Commissioner, and

b such other persons as they consider appropriate.

44B Power to make further provision about obligations imposed by virtue of section 44A

1 The Scottish Ministers may by regulations make further provision in connection with obligations imposed by virtue of section 44A.

2 The further provision that may be made under subsection (1) includes—

a the conferral of functions on public bodies,

b provision requiring the payment of reasonable fees.

3 The Scottish Ministers must, before laying a draft of any regulations under this section, consult—

a the Land and Communities Commissioner, and

b such other persons as they consider appropriate.

44C Regulations to include obligation to have land management plan

1 Regulations under section 44A must require the owner of land to ensure that—

a there is a publicly available land management plan in relation to the land,

b there is engagement with communities and tenants (including, where relevant, crofters and small landholders) on the development of, and significant changes to, the plan,

c the plan is reviewed and, where appropriate revised, before the end of each period of 5 years beginning with the day on which the latest version of it was made publicly available.

2 Subsection (1) does not require the obligation it describes to be imposed in connection with all land to which section 44F applies.

3 Regulations under section 44A must set out the information that a land management plan is to contain, which is to include—

a details of the land to which the plan relates, including how the ownership is structured,

b the owner’s long-term vision and objectives for managing the land, including its potential sale,

c the steps taken by the owner to engage with communities and tenants (including, where relevant, crofters and small landholders) in relation to the development of the plan,

d how that engagement influenced the development of the plan,

e how, in relation to the land, the owner is complying or intends to comply with—

i the obligations set out in the regulations,

ii the Scottish Outdoor Access Code in operation in pursuance of section 10 of the Land Reform (Scotland) Act 2003,

iii the code of practice on deer management in operation in pursuance of section 5A of the Deer (Scotland) Act 1996,

f how the owner is managing or intends to manage the land in a way that contributes towards—

i achieving the net-zero emissions target set by section A1 of the Climate Change (Scotland) Act 2009,

ii adapting to climate change,

iii increasing biodiversity,

g how the owner is having regard to, or intends to have regard to, any local place plan in relation to the land (in whole or in part) registered with a planning authority in accordance with schedule 19 of the Town and Country Planning (Scotland) Act 1997.

4 Regulations under section 44A may, in particular, include provision about the manner in, and the period of time within, which the owner of land may or must comply with obligations imposed in accordance with subsection (1), for example—

a provision requiring the owner to ensure that a land management plan is given to another person in order that all land management plans can be published on a single website,

b provision about the timescales for compliance in circumstances where ownership of land is transferred.

5 Subsection (6) applies where—

a in accordance with section 29(2) of the Interpretation and Legislative Reform (Scotland) Act 2010 a draft Scottish statutory instrument is laid before the Scottish Parliament containing either—

i regulations imposing the obligation described in subsection (1), or

ii regulations modifying the obligation imposed in accordance with that subsection, and

b the effect of those regulations would be that the obligation imposed in accordance with subsection (1) would not apply in relation to all of the land to which section 44F applies.

6 At the same time as laying the draft instrument mentioned in subsection (5) before the Parliament, the Scottish Ministers must also lay before the Parliament a statement of their reasons for not imposing the obligation described in subsection (1) in relation to all of the land to which section 44F applies.

44D Regulations to include obligation to consider community request to lease land

1 Regulations under section 44A must require the owner of land to give consideration to a reasonable request from a community body to lease the land or any part of it (including any building on it).

2 Subsection (1) does not require the obligation it describes to be imposed in connection with all land to which section 44F applies.

3 Subsection (4) applies where—

a in accordance with section 29(2) of the Interpretation and Legislative Reform (Scotland) Act 2010 a draft Scottish statutory instrument is laid before the Scottish Parliament containing either—

i regulations imposing the obligation described in subsection (1), or

ii regulations modifying the obligation imposed in accordance with that subsection, and

b the effect of those regulations would be that the obligation imposed in accordance with subsection (1) would not apply in relation to all of the land to which section 44F applies.

4 At the same time as laying the draft instrument mentioned in subsection (3) before the Parliament, the Scottish Ministers must also lay before the Parliament a statement of their reasons for not imposing the obligation described in subsection (1) in relation to all of the land to which section 44F applies.

5 In this section, “community body” means a community body within the meaning of section 34 of the Land Reform (Scotland) Act 2003.

44E Regulations to include obligation to consider crofting request

1 Regulations under section 44A must require the owner of land to give consideration to a reasonable request from a community body for the landowner to apply under section 3A(1) of the 1993 Act to have constituted as a croft—

a the whole of the land (provided it is all in a crofting area), or

b any part of the land that is in a crofting area.

2 Subsection (1) does not require the obligation it describes to be imposed in connection with all land to which section 44F applies.

3 In this section—

“1993 Act” means the Crofters (Scotland) Act 1993,
“community body” means—
1. a community body within the meaning of section 34 of the Land Reform (Scotland) Act 2003, or
2. a crofting community body within the meaning of section 71 of that Act,
“crofting area” means—
1. any of the crofting counties within the meaning of section 61 of the 1993 Act, or
2. any area designated by virtue of section 3A(1)(b) of that Act.

44F Land in relation to which obligations may be imposed

1 This section applies to land that is—

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,

d whether a person is connected to another is to be determined in accordance with schedule A1.

6 In this section, “land” includes—

a the foreshore, being the land between the high and low water marks of ordinary spring tides, and

b other land covered with water except the seabed.

44G Guidance about obligations imposed under section 44A

1 The Scottish Ministers must issue guidance about obligations imposed by regulations under section 44A.

2 Before issuing guidance under subsection (1), the Scottish Ministers must consult—

a the Land and Communities Commissioner, and

b such other persons as they consider appropriate.

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

Enforcement of obligations

44H Reporting alleged breach to Land and Communities Commissioner

1 A person mentioned in subsection (2) may submit a report of an alleged breach of an obligation imposed by regulations under section 44A to the Land and Communities Commissioner.

2 The persons referred to in subsection (1) are—

a a body that has registered an interest, or is eligible to register an interest, under Part 2 of the Land Reform (Scotland) Act 2003 in the land to which the report of the alleged breach relates,

b a community council, if the land to which the report of the alleged breach relates falls wholly or partly within its area,

c the Crofting Commission, if the land to which the report of the alleged breach relates falls (wholly or partly) within the crofting counties or an area that has been designated by order under section 3A(1)(b) of the Crofters (Scotland) Act 1993 by the Scottish Ministers,

d a grazings committee or a grazings constable, if the land to which the report of the alleged breach relates falls (wholly or partly) within the common grazing in relation to which the committee or, as the case may be, the constable is appointed under section 47 of the Crofters (Scotland) Act 1993,

e Highlands and Islands Enterprise, if the land to which the report of the alleged breach relates falls (wholly or partly) within the area in relation to which it exercises functions in accordance with section 21(1) of the Enterprise and New Towns (Scotland) Act 1990,

f Historic Environment Scotland,

g a local authority, if the land to which the report of the alleged breach relates falls (wholly or partly) within its area,

h a National Park authority, if the land to which the report of the alleged breach relates falls (wholly or partly) within the National Park in relation to which it exercises its functions,

i Scottish Enterprise,

j the Scottish Environment Protection Agency,

k Scottish Natural Heritage,

l South of Scotland Enterprise, if the land to which the report of the alleged breach relates falls (wholly or partly) within the South of Scotland.

3 A report under subsection (1) must contain—

a details of the person that submitted the report,

b details of the alleged breach,

c the provision of the regulations imposing the obligation that is alleged to have been breached.

4 In this section—

“community council” means a community council established by virtue of Part IV of the Local Government (Scotland) Act 1973,
“crofting counties” is to be construed in accordance with section 61 of the Crofters (Scotland) Act 1993,
“National Park authority” means an authority on which functions have been conferred by the National Parks (Scotland) Act 2000 in relation to an area designated as a National Park in an order made under section 7 of that Act,
“South of Scotland” is to be construed in accordance with section 21 of the South of Scotland Enterprise Act 2019,
“South of Scotland Enterprise” means the body corporate established by section 1 of the South of Scotland Enterprise Act 2019.

44I Commissioner’s investigation of an alleged breach

1 The Land and Communities Commissioner must investigate an alleged breach reported under section 44H if satisfied—

a that—

i the report contains sufficient information to proceed to an investigation, or

ii sufficient information to proceed to an investigation has been provided in response to a request under subsection (2), and

b that the report is not based on substantially the same facts as a previous report from the same person.

2 Where the Commissioner is not satisfied that the report contains sufficient information to proceed to an investigation, the Commissioner may require the person that submitted the report to provide such additional information as the Commissioner considers appropriate, by the end of such period as the Commissioner may specify.

3 The Commissioner may decline to investigate a report of an alleged breach by giving notice in writing to the person that submitted the report where—

a the condition in subsection (1)(a) or, as the case may be, (1)(b) is not satisfied,

b a request by the Commissioner under subsection (2) for additional information has been made and the period specified for providing the information has expired without the requested information being provided,

c the Commissioner considers that a request under subsection (2) for additional information would not provide sufficient information to proceed to an investigation, or

d the alleged breach is one in relation to which a fine has been imposed under section 44K.

4 Where the Commissioner must, in accordance with this section, investigate an alleged breach, the Commissioner must—

a give notice in writing to the person that submitted the report that the Commissioner has decided to investigate the alleged breach, and

b send to the person alleged to have committed the breach—

i a copy of the report alleging the breach, and

ii a request for the person’s response to the report within a period specified by the Commissioner.

5 Nothing in this section precludes the Commissioner, despite no report having been submitted under section 44H(1), from—

a investigating whether an obligation imposed by regulations under section 44A might have been breached,

b proceeding to investigate an alleged breach,

where the Commissioner considers that it would be appropriate in the circumstances to do so.

6 Where subsection (5) applies and the Commissioner decides to investigate the alleged breach, the Commissioner must—

a prepare a report setting out—

i details of the alleged breach,

ii the provision of the regulations imposing the obligation that is alleged to have been breached, and

b send to the person alleged to have committed the breach—

i a copy of that report, and

ii a request for the person’s response to the report within a period specified by the Commissioner.

7 When complying with an obligation under subsection (4)(b)(i) or (6)(b)(i), the Commissioner may do so by providing the report in a redacted form if—

a the report contains information about a person, other than the person that submitted the report, which is relevant to the investigation of the alleged breach to which the report relates, and

b the disclosure of that personal information in the report could result in that person being identified.

44J Power to require information be provided

1 The Land and Communities Commissioner may, at any time during an investigation under this Chapter, require any person to provide any information that the Commissioner considers appropriate for the purposes of the investigation.

2 The Commissioner may, by notice, impose a fine on a person for failing to comply with a requirement under subsection (1).

3 The amount of a fine imposed under this section is to be determined by the Commissioner, but must not exceed £1,000.

44K Sanction for breach of obligation

1 Having determined, following an investigation under this Chapter (other than an investigation under section 44M), that an obligation has been breached, the Land and Communities Commissioner may, by notice, impose a fine on the person that committed the breach.

2 But the Commissioner may impose a fine under this section only if—

a the person that committed the breach has been given an opportunity to reach an agreement with the Commissioner about what the person must do to remedy the breach and the person either—

i has refused to reach an agreement, or

ii having reached an agreement, has failed to fulfil it, or

b the Commissioner does not consider it appropriate to give the person that committed the breach an opportunity to remedy it, having regard to the person’s previous failure (or failures) to comply with an obligation imposed by regulations under section 44A.

3 The amount of a fine imposed under this section is to be determined by the Commissioner, but must not exceed £40,000.

44L Appeal against fine

1 A person on whom a fine is imposed under section 44J, 44K or 44M may appeal to the Lands Tribunal for Scotland against the fine on the ground that the decision to impose it—

a was based on an error of fact,

b was wrong in law, or

c was unfair or unreasonable for any reason (for example because the amount is unreasonable).

2 An appeal under subsection (1) must be made before the end of the period of 28 days beginning with the day on which the notice imposing the fine was received by the person making the appeal.

3 Where an appeal under subsection (1) is made, the fine is suspended from the day on which the appeal is made until the day on which it is determined or withdrawn.

4 On an appeal under subsection (1), the Tribunal may overturn, confirm or vary the fine.

5 In the case of an appeal against a fine imposed under section 44K, having overturned the fine, the Tribunal may remit the matter to the Land and Communities Commissioner to give the person concerned an opportunity to reach an agreement with the Commissioner about what the person must do to remedy the breach in relation to which the fine was imposed.

6 Where a matter is remitted to the Commissioner and the person concerned—

a refuses to reach an agreement with the Commissioner about what the person must do to remedy the breach in question, or

b reaches such an agreement but fails to fulfil it,

the Commissioner may exercise again the power conferred by section 44K to impose a fine on the person in respect of the breach.

44M Enforcement notice

1 This section applies where a fine has been imposed under section 44K and either—

a the period specified in section 44L(2) in respect of that fine has expired and no appeal has been made, or

b if an appeal against that fine has been made under section 44L, either—

i the appeal has been withdrawn, or

ii the appeal has been determined, the existence of the breach has been upheld, and the Tribunal has not remitted the matter to the Land and Communities Commissioner under section 44L(5).

2 The Land and Communities Commissioner may investigate whether the breach in respect of which the fine was imposed has been remedied.

3 Having determined, following an investigation under subsection (2), that the breach has not been remedied, the Land and Communities Commissioner may serve notice (“an enforcement notice”) on the person that committed the breach specifying—

a the obligation in relation to which the person remains in breach,

b the steps that must be taken to remedy the breach,

c the period within which those steps must be taken, which period must not be less than 28 days beginning with the day on which the enforcement notice is received, and

d that a further fine may be imposed on the person if the breach is not remedied within that period.

4 Subject to section 44N, on expiry of the period specified in the enforcement notice in accordance with subsection (3)(c), the Land and Communities Commissioner may—

a investigate whether the steps specified in the enforcement notice have been taken and the breach remedied,

b if satisfied that the breach has not been remedied, impose, by notice, a fine on the person that committed the breach.

5 The amount of a fine imposed under this section is to be determined by the Commissioner, but must not exceed £40,000.

6 This section (apart from subsection (1)) applies where a fine has been imposed under subsection (4)(b) as it applies where a fine has been imposed under section 44K, and either—

a the period specified in section 44L(2) in respect of that fine has expired and no appeal has been made, or

b if an appeal has been made against that fine under section 44L, either—

i the appeal has been withdrawn, or

ii the appeal has been determined and the failure to remedy the breach has been upheld.

44N Appeal against enforcement notice

1 A person on whom an enforcement notice is served under section 44M may appeal to the Lands Tribunal for Scotland, on a ground specified in subsection (2), against—

a the decision to serve the enforcement notice,

b the steps specified in the enforcement notice,

c the time period specified in the enforcement notice.

2 The grounds are that the matter being appealed against—

a was based on an error of fact,

b was wrong in law,

c was unfair or unreasonable for any reason.

3 An appeal under subsection (1) must be made before the end of the period of 28 days beginning with the day on which the enforcement notice was received by the person making the appeal.

4 Where an appeal under subsection (1) is made, the enforcement notice is suspended from the day on which the appeal is made until the day on which it is determined or withdrawn.

5 On an appeal under subsection (1), the Tribunal may overturn, confirm, or vary the enforcement notice.

Further provision in connection with enforcement

44O Notice imposing fine

1 A notice imposing a fine under section 44J, 44K or 44M must be in writing and state—

a the grounds for imposing the fine,

b the amount of the fine,

c the period within which the fine must be paid, which period must be not less than 28 days beginning with the day on which the notice imposing the fine is received,

d how it must be paid,

e information about the right to appeal under section 44L, and

f the consequences of failure to make payment within the period specified.

2 For the purpose of subsection (1)(c), a notice is deemed to be received 48 hours after it is sent.

44P Further provision about fines

1 Money received by the Commission in payment of a fine imposed under section 44J, 44K or 44M must be paid into the Scottish Consolidated Fund.

2 The Commission may recover any fine imposed under any of those sections as a civil debt.

44Q Confidentiality of information obtained in investigation

1 A relevant person must not disclose any information which has been obtained by or on behalf of the Land and Communities Commissioner for the purposes of an investigation under this Chapter unless authorised to do so.

2 Disclosure is authorised for the purposes of subsection (1) only so far as—

a it is necessary for the purpose of enabling or assisting the exercise by the Commissioner of the Commissioner’s functions,

b it is made with the consent of each person to whom the information relates,

c it is made for the purposes of civil proceedings,

d it is made for the purposes of a criminal investigation or criminal proceedings or for the purposes of the prevention or detection of crime,

e it is made in pursuance of an order of a court or tribunal,

f it is made in accordance with any other enactment requiring or permitting the disclosure.

3 A person who knowingly contravenes subsection (1) commits an offence.

4 A person guilty of an offence under subsection (3) is liable—

a on summary conviction, to a fine not exceeding the statutory maximum, or

b on conviction on indictment, to a fine.

5 It is a defence for a person charged with an offence under subsection (3) to prove that the person reasonably believed—

a that the disclosure was authorised under subsection (2), or

b that the information had already lawfully been made available to the public.

6 In subsection (1), “relevant person” means any individual who is or was—

a the Commissioner (or acting Land and Communities Commissioner),

b a Land Commissioner,

c a member of the Commission’s staff,

d a person exercising functions on behalf of the Commission or its members.

Modification of Chapter 2 and schedule A1 by regulations

44R Powers to modify Chapter and schedule A1

1 The Scottish Ministers may by regulations modify this Chapter and schedule A1 so as to change (or clarify)—

a the land in relation to which obligations may be imposed by regulations under section 44A,

b the list of persons in section 44H(2),

c the maximum amount of a fine which may be imposed under section 44K(1) or 44M(4)(b).

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

5 In section 126 (subordinate legislation), in subsection (3), after paragraph (b) insert—

6 Insert—

a the following before schedule 1 as schedule A1—

b after paragraph 1 of schedule A1, the text set out in schedule 1.

^I22 Community right to buy: registration of interest in large land holding¶

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

2 In section 39 (procedure for late applications), for subsection (1) substitute—

3 After section 39 insert—

39ZA Procedure for application invited under section 46G

1 This section applies in relation to an application to register a community interest in land if it—

a is made by a community body that Ministers invited to make an application in accordance with section 46G,

b relates to the land in respect of which Ministers invited the community body to make an application,

c is made within the period that the invitation explained the application had to be made within for it to be considered in accordance with this section, and

d is the only application that the community body has made within the period in relation to the land.

2 Where this section applies in relation to an application, the procedure for registering community interests in land set out in section 37 is, for the purposes of the application, subject to the following modifications—

a paragraph (b) of subsection (9) does not apply, and

b in subsection (17), for “63” there is substituted “30”.

3 Where this section applies in relation to an application, Ministers may not decide that a community interest is to be entered in the register unless they are (additionally to the matters as to which they are to be satisfied under section 38) satisfied—

a that the level of support within the community for such registration is significantly greater than that which Ministers would, by virtue of subsection (2) of section 38, have considered sufficient for the purposes of subsection (1)(d) of that section, and

b that the factors bearing on whether it is or is not in the public interest that the community interest be registered are strongly indicative that it is.

4 Where a community interest in land is registered in pursuance of an application in relation to which this section applies—

a the owner of the land is, for the purposes of this Part of this Act (other than section 59(4)), deemed to have, on the date on which that interest is so registered, given notice under section 48(1) that a transfer is proposed,

b section 49 does not apply in so far as it relates to that interest,

c for the purposes of sections 55(2) and (4), 56(3), 59(1), 60A(1) and 65(1)(a), the community body is deemed to have sent the confirmation which Ministers would, had section 49 applied, have required to seek under subsection (2)(a) of that section on the date on which the interest is registered.

4 After section 46 insert—

Chapter 2A Extended opportunity to register interest in relation to large land holding

Record of persons who wish to be notified of possible transfers

46A Ministers to keep record of persons to notify of possible land transfers

1 Ministers are to keep a list of the contact details of persons who wish to be notified under section 46D(2)(b) about any possible transfer of land to which section 46L applies in a particular area.

2 A person’s details are to be added to, changed on, and removed from, the list at the person’s request.

3 The reference in subsection (2) to a person’s details includes the specification of the area in relation to which the person wishes to be notified of possible transfers of land.

4 Ministers must issue guidance in relation to the making of a request under subsection (2).

5 Ministers must make publicly available the latest version of any guidance issued under subsection (4) as soon as practicable after issuing it.

Prohibitions on transfer to extend opportunity for registering interest

46B Prohibition on transfer to allow time for interest to be registered

1 The owner of land to which section 46L applies, and any creditor in a standard security having a right to sell the land, is prohibited from—

a transferring the land, or

b taking any action with a view to a transfer of the land,

until Ministers give notice under section 46E that the prohibition under this section is lifted (but see section 46H(2)).

2 A notice under section 46E lifts the prohibition under subsection (1) until—

a the land is transferred, or

b if the land is not transferred within the period of 2 years beginning with the day that the notice is sent, the expiry of that period.

46C Request by owner, or creditor, to lift prohibition under section 46B

1 An owner of land, or a creditor in a standard security with the right to sell land, may make a request to Ministers to lift the prohibition under section 46B(1) so that the land can be transferred.

2 A request under subsection (1) is to be made by notice in the prescribed manner.

46D Procedure following receipt of notice under section 46C or 48

1 Having received notification under section 46C or 48 of an intention to transfer land to which section 46L applies, Ministers are to publicise—

a that the owner or, as the case may be, the creditor intends to transfer the land, and

b how a community body can register an interest in some or all of the land under Chapter 2.

2 In order to comply with their duty under subsection (1), Ministers must—

a arrange for prescribed information about the possible transfer of the land to be made publicly available on a website,

b send prescribed information about the possible transfer of the land to every—

i person whose contact details they hold on the list kept under section 46A so that the person can be notified about any possible transfer of land in an area that (wholly or partly) subsumes or is subsumed by the area of the land,

ii community council whose area includes the land,

iii local authority whose area includes the land,

iv National Park authority whose area includes the land.

3 In this section, “local authority” means a council constituted under section 2 of the Local Government etc. (Scotland) Act 1994.

46E Notice that prohibition under section 46B is lifted

1 Ministers are to give notice to a person who notified them under section 46C or 48 of an intention to transfer land that the prohibition on transferring the land under section 46B(1) is lifted once the period of 30 days beginning with the day that Ministers fulfilled their duty under section 46D to publicise the possible transfer of the land has expired.

2 If, when that period expires, Ministers are considering whether to impose a prohibition on the transfer of the land under section 46F(1), they are not to give notice under subsection (1) until they have decided whether they are or are not required to impose such a prohibition.

3 If Ministers decide that they are required to impose a prohibition on the transfer of the land under section 46F, they must not give notice under subsection (1) before giving notice under section 46F(2) intimating the imposition of that prohibition.

4 The giving of notice under subsection (1) is not to be delayed by virtue of subsection (2) beyond the period of 60 days beginning with the day that Ministers fulfilled their duty under section 46D to publicise the possible transfer of the land.

5 Any failure to comply with the time limit specified in subsection (4) does not affect the validity of anything done under this section.

46F Further prohibition on transfer to allow for invited application to register an interest

1 In the circumstances mentioned in subsection (3), Ministers are to prohibit the owner of land, and any creditor in a standard security over an interest in the land, from—

a transferring the land, or

b taking any action with a view to a transfer of the land,

until the expiry of the period mentioned in subsection (2)(b).

2 A prohibition on a person under subsection (1)—

a is imposed when Ministers give notice intimating that it is imposed, and

b expires at the end of the period of 70 days beginning with the day it is imposed.

3 The circumstances referred to in subsection (1) are that—

a Ministers have publicised the possible transfer of the land, or a larger area of land of which it forms part, in accordance with section 46D,

b a person has submitted to Ministers a note, containing prescribed information, expressing an intention on the part of the person, or another person, to register a community interest in the land (“note of intention to register”),

c Ministers receive the note of intention to register within the period of 30 days beginning with the day that they sent information about the possible transfer in accordance with section 46D(2)(b),

d Ministers are satisfied that—

i before any prohibition they impose under subsection (1) in respect of the land would have expired, it is likely that an application to register a community interest in the land would be made by the person on the part of whom the note of intention to register expresses an intention to register a community interest, and

ii there is a reasonable prospect of that application resulting in a community interest in the land being registered.

4 For the purpose of subsection (3)—

a the person on the part of whom a note of intention to register expresses an intention to register a community interest in land need not be a legal person at the time the note is submitted,

b where Ministers sent the information mentioned in subsection (3)(c) on different days, the reference to the information being sent is to its being sent on the last of those days.

46G Invitation to apply to register an interest

1 Where, following receipt of a note of intention to register, Ministers impose a prohibition under section 46F(1), they must also send a notice to the person who submitted the note of intention to register that—

a invites the person said in the note to have an intention to register a community interest in land to make an application under section 37 in relation to the land, and

b explains that if the person makes the application before the expiry of the period of the prohibition, the application will be considered in accordance with section 39ZA.

2 In this section, “note of intention to register” has the meaning given by section 46F(3)(b).

46H Effect of, and exceptions to, prohibition of transfer under section 46B or 46F

1 A transfer of land is of no effect if it is in breach of—

a section 46B(1), or

b a prohibition imposed under section 46F(1).

2 Section 46B(1) and a prohibition imposed under section 46F(1) do not apply in relation to—

a excluded land within the meaning of section 33(1),

b a transfer to which subsection (1) of section 40 does not apply by virtue of subsection (4) of that section, or

c a transfer of a kind exempted by section 46M(2).

3 Action is taken with a view to a transfer of land for the purposes of sections 46B and 46F if it would be regarded as having been taken for the purpose of section 40.

46I Lifting prohibitions in exceptional circumstances

1 Ministers may disapply the prohibition under section 46B(1), or a prohibition imposed under section 46F(1), in relation to any area of land 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 the prohibition to be lifted in accordance with section 46E or, as the case may be, 46F(2)(b) is likely to cause, or worsen, financial hardship for the owner.

2 Ministers may disapply a prohibition in relation to land by virtue of subsection (1) only if a request to do so is made—

a by the owner of the land, and

b in the prescribed manner.

3 The disapplication of a prohibition in relation to land by virtue of subsection (1)—

a begins when the owner of the land receives a notice from Ministers intimating that it is disapplied, and

b ends on a date specified in the notice.

Anti-avoidance

46J Requirement for declaration of compliance with Chapter

1 Where land to which section 46L 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 Chapter.

2 A declaration under subsection (1) is not required if a declaration under section 46K is required in relation to the land being transferred.

46K Requirement to explain exemption to prohibition in transfer deed

Where land is being transferred and that would be in breach of a prohibition but for section 46H(2)(b), the transferor is to incorporate in the deed giving effect to the transfer a declaration—

a specifying which provision of subsection (4) of section 40 operates so as to make the transfer one to which subsection (1) of that section 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 of the main purposes or effects, of which is the avoidance of the requirements or consequences of this Part of this Act.

Land affected by the prohibitions

46L Land affected by the prohibitions

1 This section applies to land that is, or forms part of, a large holding of land.

2 In subsection (1), a “large holding of land” means—

a a single holding, or

b a composite holding,

that exceeds 1,000 hectares in area.

3 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 (4) are met.

4 The conditions referred to in subsection (3)(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.

5 For the purposes of subsection (3)(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.

6 For the purposes of subsection (4)—

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,

d whether a person is connected to another is to be determined in accordance with schedule 1A.

7 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.

Modification of operation of Chapter 2A by regulations

46M Powers to modify Chapter and schedule 1A, etc.

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

a the period specified in section 46F(2)(b),

b the land to which section 46L applies.

2 Ministers may by regulations—

a specify transfers of land to which section 46B(1) and a prohibition imposed under section 46F(1) do not apply, and

b in consequence of provision made by paragraph (a), modify sections 46J and 46K.

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

^I33 Modifications in connection with section 2¶

1 The Conveyancing and Feudal Reform (Scotland) Act 1970 is modified by subsection (2).

2 In section 25 (exercise of power of sale) for the words from “sections” to “provisions)” substitute “the prohibitions on transferring land provided for in the Land Reform (Scotland) Act 2003”.

3 The Land Reform (Scotland) Act 2003 is modified by subsections (4) to (7).

4 In section 36 (register of community interests in land), after subsection (6) insert—

5 In section 37 (registration of interest in land), in subsection (19), after “39(2)(b)” insert “or 39ZA(2)(b)”.

6 In section 63 (compensation), for subsection (1)(c) substitute—

7 In section 98 (general and supplementary provisions)—

a in subsection (1), in the definition of “prescribed”, after “Ministers” insert “and related expressions are to be construed accordingly”,

b in subsection (5)—

i for “36” substitute “36(6)”,

ii after “(4B),” in the first place in which it appears, insert “36(6A),”,

iii after “38(2B),” insert “46M,”.

8 The Land Registration etc. (Scotland) Act 2012 is modified by subsection (9).

9 In section 42 (notification to Scottish Ministers of certain applications)—

a in subsection (1)—

i the word “or” immediately preceding paragraph (b) is repealed,

ii after paragraph (b) insert—

b in subsection (2), after “43(2)” insert “or 46K”.

^I44 Lotting of large land holding¶

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

2 After Part 2 insert—

Part 2A Lotting of large land holdings

Chapter 1 Prohibitions on transfer

The prohibitions

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

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

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—
1. the foreshore, that is to say, the land between the high and low water marks of ordinary spring tides, and
2. 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 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 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 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 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 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.

^I55 Modifications in connection with section 4¶

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

2 In section 98 (general and supplementary provisions)—

a in subsection (5), before “71(A1)(b)” insert “67U(6), 67X(4), 67Z1,”,

b in subsection (5A), after “51(1)(b),” insert “67O, 67T,”.

^I66 Modifications in connection with sections 2 and 4¶

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

2 After schedule 1 insert the following as schedule 1A—

3 If, in the title of schedule 1A, the words “the relevant provisions”—

a appear, then for those words—

i in paragraph 1 of the schedule substitute “section 46L(4)(b)”,

ii in the title of the schedule substitute “Chapter 2A of Part 2”,

b do not appear, then—

i in paragraph 1 of the schedule after “of” insert “section 46L(4)(b) and”,

ii in the title of the schedule after “in” insert “Chapter 2A of Part 2 and”.

4 If, in the title of schedule 1A, the words “the relevant provisions”—

a appear, then for those words—

i in paragraph 1 of the schedule substitute “the provisions mentioned in section 67J(2)”,

ii in the title of the schedule substitute “Part 2A”,

b do not appear, then—

i in paragraph 1 of the schedule after “46L(4)(b)” insert “and the provisions mentioned in section 67J(2)”,

ii in the title of the schedule after “Chapter 2A of Part 2” insert “and Part 2A”.

5 After paragraph 1 of schedule 1A insert the text set out in schedule 1.

^I77 Establishment of the Land and Communities Commissioner¶

1 The Land Reform (Scotland) Act 2016 is modified as follows.

2 In section 4 (the Scottish Land Commission)—

a in subsection (4)—

i the word “and” immediately preceding paragraph (b) is repealed,

ii after paragraph (b) insert

b after subsection (8) insert—

3 In section 6 (functions of the Commission), for “and Tenant Farming Commissioner” substitute “, Tenant Farming Commissioner and Land and Communities Commissioner”.

4 In section 7 (general powers of the Commission), after subsection (1)(a)(iii) insert—

5 In section 8 (the Commission’s strategic plan)—

a in subsection (1), for “and the Tenant Farming Commissioner” substitute “, the Tenant Farming Commissioner and the Land and Communities Commissioner”,

b in subsection (2)—

i after paragraph (a)(iii) insert—

ii after paragraph (b)(iii) insert—

6 In section 11 (eligibility for appointment), after subsection (3) insert—

7 In section 12 (disqualification from membership)—

a after subsection (2) insert—

b after subsection (5) insert—

8 In section 17 (committees of the Commission)—

a in subsection (1), after paragraph (c) insert—

b in subsection (5)(b), for “or of the Tenant Farming Commissioner” substitute “, of the Tenant Farming Commissioner or of the Land and Communities Commissioner”.

9 In section 20 (annual report), after subsection (1)(a)(iii) insert—

10 In section 22 (functions of the Land Commissioners)—

a in subsection (3), for paragraph (b) substitute—

b after subsection (4) insert—

11 After section 38 insert—

Chapter 4 The Land and Communities Commissioner

38A Functions of the Land and Communities Commissioner

The functions of the Land and Communities Commissioner are—

a to enforce, in accordance with sections 44H to 44L, obligations imposed by regulations under section 44A,

b to exercise the function conferred on the Commissioner by Part 2A of the Land Reform (Scotland) Act 2003,

c to collaborate with the Land Commissioners in the exercise of their functions to the extent that those functions relate to the functions of the Commissioner,

d to exercise any other functions conferred on the Commissioner by any enactment.

38B Delegation of functions

1 The Land and Communities Commissioner may authorise the following to exercise such of the Commissioner’s functions, and to such extent, as the Commissioner may determine—

a any committee,

b any employee of the Commission,

c any other person.

2 Nothing in subsection (1) affects the responsibility of the Land and Communities Commissioner for the exercise of the Commissioner’s functions.

38C Acting Land and Communities Commissioner

1 The Scottish Ministers may appoint a person to carry out the functions of the Land and Communities Commissioner during a period in which the office is vacant (an “acting Land and Communities Commissioner”).

2 A person who is disqualified for appointment as Land and Communities Commissioner is also disqualified for appointment as acting Land and Communities Commissioner.

3 A person appointed as acting Land and Communities Commissioner—

a may, by giving notice in writing to the Scottish Ministers, resign at any time,

b may be dismissed by the Scottish Ministers at any time,

c in other respects, holds appointment on such terms and conditions as the Scottish Ministers may determine.

4 While holding appointment as acting Land and Communities Commissioner, a person is to be treated as the Commissioner for all purposes other than those of sections 13 and 14.

Chapter 2 Functions of the Land Commissioners¶

^I8^I1368 Functions of the Land Commissioners: natural capital markets¶

1 The Land Reform (Scotland) Act 2016 is modified as follows.

2 In section 22 (functions of the Land Commissioners)—

a in subsection (5), after paragraph (d) insert

b after subsection (5) insert—

^I9^I1379 Functions of the Land Commissioners: further provisions¶

1 The Land Reform (Scotland) Act 2016 is modified as follows.

2 In section 22 (functions of the Land Commissioners), in subsection (5), after paragraph (e) (as inserted by section 8(2) of this Act) insert

Chapter 3 Review of part¶

^I1010 Review of Part 1¶

1 The Land Commissioners must, in pursuance of their function under section 22(1)(a) of the Land Reform (Scotland) Act 2016, review the impact and effectiveness of this Part.

2 The review must evaluate the impact and effect of this Part on islands and island communities (within the meaning of the Islands (Scotland) Act 2018).

3 The review must consider the appropriateness of this Part’s application to land as described in section 44F of the Land Reform (Scotland) Act 2016 and sections 46L and 67H of the Land Reform (Scotland) Act 2003, having particular regard to the size of the areas of land, and whether the size of the areas needs to be reduced.

4 The review must consider the appropriateness of this Part’s application to land as described in section 44F of the Land Reform (Scotland) Act 2016 and sections 46L and 67H of the Land Reform (Scotland) Act 2003, having particular regard to what land is to be treated as contiguous and what land forms a composite holding.

5 The review must consider—

a whether there is greater transparency of land ownership and management as a result of this Part,

b whether communities are experiencing greater involvement in decisions about the land on which they live and work as a result of this Part,

c any impact that this Part has had on the amount of land purchased by community bodies,

d whether there is a greater diversification of land ownership as a result of this Part and, if so, the impact this has had on community sustainability,

e whether the thresholds for the land to which section 44F of the 2016 Act and sections 46L and 67H of the 2003 Act apply should be amended,

f whether there are any loopholes that have been identified in the application of this Part,

g any negative unintended consequences of this Part.

6 The review must be completed no later than 5 years after the day on which this section comes into force.

7 As soon as reasonably practicable after completing the review, the Land Commissioners must—

a prepare a report of the review’s findings,

b lay a copy of the report before the Scottish Parliament, and

c make the report publicly available.

8 Within 1 year of a report being laid before the Parliament in accordance with subsection (7)(b), the Scottish Ministers must—

a prepare a response to the report which includes—

i a statement of any action the Scottish Ministers intend to take as a result of the review’s findings, and

ii where the Scottish Ministers do not intend to take any action, a statement of their reasons for that,

b lay a copy of the response before the Parliament, and

c make the response publicly available.

Part 2 Leasing land¶

Chapter 1 Model leases¶

^I1111 Duty to publish model lease for environmental purposes¶

1 The Scottish Ministers are to make publicly available a model lease designed for letting land so that it can be used (wholly or partly) for an environmental purpose.

2 The Scottish Ministers must fulfil their duty under this section before the end of the period of 2 years beginning with the day that the Bill for this Act receives Royal Assent.

3 The Scottish Ministers may by regulations modify subsection (2) to change the date by which their duty under this section is to be fulfilled.

4 For the purpose of this section, land is used for an environmental purpose if it is used—

a for sustainable and regenerative agriculture,

b in a way that contributes towards achieving the net-zero emissions target set by section A1 of the Climate Change (Scotland) Act 2009,

c in a way that contributes towards adaptation to climate change,

d in a way that contributes towards increasing or sustaining biodiversity.

^I12^I13812 Duty to publish model lease for hutting¶

1 The Scottish Ministers are to make publicly available a model lease designed for letting public land so that it can be used for the purpose of building or occupying huts.

2 The Scottish Ministers must fulfil their duty under this section before the end of the period of 3 years beginning with the day that the Bill for this Act receives Royal Assent.

3 The Scottish Ministers may by regulations modify subsection (2) to change the date by which their duty under this section is to be fulfilled.

4 For the purpose of this section, a hut—

a is a simple building used intermittently as recreational accommodation,

b has an internal floor area of no more than 30 square metres,

c is constructed from low impact materials,

d is generally not connected to mains water, electricity or sewerage,

e is built in such a way that it is removable with little or no trace at the end of its life.

Chapter 2 Small landholdings¶

^I1313 Small landholdings¶

Schedule 2 makes provision in respect of certain aspects of the law relating to small landholdings.

^I1414 Extension of Tenant Farming Commissioner’s functions¶

1 The Land Reform (Scotland) Act 2016 is modified as follows.

2 In section 11 (eligibility for appointment), in subsection (3), after “agriculture” insert “and rural land tenure”.

3 In section 12 (disqualification from membership), in subsection (3)—

a the word “or” immediately preceding paragraph (b) is repealed,

b after paragraph (b) insert

4 In section 22 (functions of the Land Commissioners), in subsection (4), for “and agricultural holdings” substitute “, agricultural holdings and small landholdings”.

5 In section 24 (functions of the Tenant Farming Commissioner)—

a in subsection (1)—

i in paragraph (a), after “agricultural holdings” insert “and small landholdings”,

ii in paragraph (d), after “tenants” insert “of agricultural holdings”,

iii in paragraph (f), after “agricultural holdings” insert “or small landholdings”,

iv in paragraph (g), for “and agricultural holdings” substitute “, agricultural holdings and small landholdings”,

b in subsection (2), for “agricultural holdings.” substitute

c after subsection (5) insert—

6 In section 27 (Tenant Farming Commissioner: codes of practice)—

a in subsection (1), for “landlords and tenants of agricultural holdings and their agents.” substitute

b in subsection (2)—

i in paragraph (a), after “negotiating” insert “rent”,

ii in paragraph (f), after “waygo” insert “or removal”,

iii after paragraph (g) insert—

iv in paragraph (j) (inserted by section 31), after “purposes” insert “or for non-cultivation activities”,

c in subsection (9)—

i for “section 61 of the 1991 Act or section 78 of the 2003 Act” substitute “the following provisions”,

ii after “proceedings” insert

7 In section 28 (Tenant Farming Commissioner: promotion of codes of practice)—

a in paragraph (b), for “landlords and tenants of agricultural holdings and their agents,” substitute

b in paragraph (c), for “landlords and tenants of agricultural holdings and their agents,” substitute

c in paragraph (e), after “agricultural holdings” insert “and small landholdings”.

8 In section 33 (report on inquiry), in subsection (4)—

a for “section 61 of the 1991 Act or section 78 of the 2003 Act” substitute “the following provisions”,

b after “proceedings” insert

9 The heading of section 36 becomes “Report on operation of agents in relation to agricultural holdings”.

10 The heading of section 37 becomes “Recommendations for modern list of improvements to agricultural holdings”.

Chapter 3 Agricultural holdings¶

Tenant’s right to buy¶

^I1515 Registration of interest and right to buy¶

1 The Agricultural Holdings (Scotland) Act 2003 is modified by subsections (2) to (10).

2 In section 25 (registration of tenant’s interest), in subsection (6)—

a in the opening words, the words “on receipt of the extract,” are repealed,

b in paragraph (a), after “tenant” insert “on receipt of the extract”,

c in paragraph (b), after “security” insert “within the period of 28 days beginning with the day on which the owner receives the extract”.

3 In section 27 (transfers not requiring notice)—

a in subsection (1)(c), after “spouses” insert “or civil partners”,

b after subsection (5) insert—

4 In section 28 (right to buy), after subsection (5) insert—

5 In section 29 (exercise of right to buy)—

a in subsection (1), for “28(1)” substitute “28(1)(a)”,

b after subsection (2) insert—

c for subsection (6) substitute—

d after subsection (7) insert—

6 After section 31 insert—

31A Power to modify: registration of tenant’s interest

1 The Scottish Ministers may by regulations make provision for or in connection with the registration by tenants of 1991 Act tenancies of their interests in acquiring the land comprised in their leases.

2 In particular (but without limit to that generality) regulations under subsection (1) may—

a make provision about—

i the manner in which tenants notify their landlord of their interest in acquiring the land comprised in their leases,

ii the procedure by which that interest is (or may be) registered,

iii how applications for registration and entries in the Register may be challenged,

iv the effect of registration,

v the Keeper’s functions in respect of registration,

vi the updating or correction of entries in the Register,

vii the consequences of an application for registration, or an entry in the Register, being inaccurate in a material regard,

viii the expiry or cancellation of an entry in the Register,

b modify sections 24 to 28, and

c if the Scottish Ministers consider it necessary or expedient, make consequential provision which modifies the other provisions in this Part.

3 Before laying a draft of a Scottish statutory instrument containing regulations under subsection (1) before the Scottish Parliament, the Scottish Ministers must consult—

a the Keeper,

b such persons as the Scottish Ministers consider representative of the interests of tenants of 1991 Act tenancies and their landlords, and

c such other persons as the Scottish Ministers consider are likely to have an interest in the registration of interests to acquire land.

7 In section 32 (procedure for buying), in subsection (3)—

a in the opening words, for “are” substitute “is”,

b in paragraph (a), after “29(2)” insert “, (2A)”.

8 In section 33 (appointment of valuer), in subsection (2), after “29(2)” insert “, (2A)”.

9 In section 34 (valuation of the land), in subsection (1)—

a the words from “the date” to the end become paragraph (a),

b after that paragraph insert

10 In section 91 (orders and regulations)—

a in subsection (3)(a), after “18(4)(b)(ii),” insert “25(7),”,

b in subsection (3)(b), after “18A(4)(b)(ii),” insert “25(3),”,

c in subsection (4)(b), after “9C(6),” insert “29(8), 31A,”.

11 The Land Reform (Scotland) Act 2016 is modified by subsections (12) and (13).

12 In section 27(2) (Tenant Farming Commissioner: codes of practice), after paragraph (e) insert—

13 Section 99 (tenant’s right to buy: removal of requirement to register) is repealed.

Assignation in relation to 1991 Act tenancies¶

^I1616 Assignation of tenancy¶

1 The Agricultural Holdings (Scotland) Act 1991 is modified as follows.

2 In section 10A (assignation of tenancy)—

a in subsection (1A), for paragraphs (b) to (n) substitute—

b after subsection (1A) insert—

c in subsection (2), after “assignee” insert “(including the proposed assignee’s relationship to the tenant)”,

d in subsection (3B)(a), for “of the notice” substitute “on which the notice is given”,

e in subsection (4), for “30 days of the giving of the notice” substitute “the period of 28 days beginning with the date on which the notice is given”,

f in subsection (5), for “under this section shall, in so far as it so purports, be null and void” substitute “in accordance with this section or in accordance with an order of the Land Court made under section 60 is, in so far as it so purports, null and void”,

g in subsection (6), for paragraphs (a) to (m) substitute—

h after subsection (6) insert—

Assignation in relation to 2003 Act tenancies¶

^I1717 Assignation of limited duration tenancy¶

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

2 In section 7 (assignation and subletting of limited duration tenancies)—

a in subsection (2), after “assignee” insert “(including the proposed assignee’s relationship to the tenant)”,

b in subsection (3B)(a), for “of the notice” substitute “on which the notice is given”,

c in subsection (4), for “30 days of the giving of the notice” substitute “the period of 28 days beginning with the date on which the notice is given”,

d in subsection (5)(a)(ii), for “30 days of the giving of the notice” substitute “the period of 28 days beginning with the date on which the notice is given”,

e in subsection (5A), for paragraphs (a) to (m) substitute—

f after that subsection insert—

^I1818 Assignation of modern limited duration tenancy¶

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

2 In section 7B (assignation of modern limited duration tenancies)—

a in subsection (2), after “assignee” insert “(including the proposed assignee’s relationship to the tenant)”,

b in subsection (5)(a), for “of the notice” substitute “on which the notice is given”,

c in subsection (6), for “30 days of the giving of the notice” substitute “the period of 28 days beginning with the date on which the notice is given”,

d in subsection (8), for paragraphs (a) to (m) substitute—

e after that subsection insert—

^I1919 Assignation of repairing tenancy¶

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

2 In section 7D (assignation of repairing tenancies) (as inserted by the section 106(2) of the Land Reform (Scotland) Act 2016)—

a in subsection (4)(a), for “of the notice” substitute “on which the notice is given”,

b in subsection (5), for “30 days of the giving of the notice” substitute “the period of 28 days beginning with the date in which the notice is given”.

Resumption¶

^I2020 Resumption in relation to 1991 Act tenancies¶

1 The Agricultural Holdings (Scotland) Act 1991 is modified as follows.

2 After Part 3 insert—

Part 3ZA Resumption

32ZA Resumption: notice, compensation and reversion

1 This section applies where a landlord is entitled to resume possession of a part of an agricultural holding.

2 To resume possession of a part of an agricultural holding the landlord must give the tenant written notice of the landlord’s intention to resume possession.

3 The notice must—

a be in such form and contain such information as may be prescribed,

b nominate a person who appears to the landlord to meet the requirements to be a valuer mentioned in paragraph 3(4) of schedule 2A,

c be given not less than 1 year before the date on which the resumption is to take place, and

d specify that date.

4 Where notice is given under subsection (2) for resumption of possession of part of the holding, the tenant may, within the period of 6 weeks beginning with (the later of) the date on which—

a the notice was given, or

b any matter arising from the notice is determined,

terminate the tenancy by giving notice in writing to the landlord.

5 Where the tenant terminates the tenancy by giving notice under subsection (4), the termination takes effect on the date specified under subsection (3)(d).

6 In addition to—

a the reduction in rent to which the tenant is entitled under section 31(1), and

b any claim the tenant may have for compensation under Part 4 or 5 or an additional payment under Part 6 (or under the lease),

the tenant is to be paid an amount determined in accordance with schedule 2A as compensation for the tenant’s interest in the value of the land being resumed.

7 Where—

a possession of land has been resumed under this section for a purpose mentioned in section 29(2)(f) (which specifies certain forms of mineral exploitation) (that provision applying for the purposes of this section as it does for the purposes of that section), and

b the land has subsequently been made suitable for, and is available for, agricultural use,

that land is, if the conditions in subsection (8) are fulfilled, to be restored to the tenancy.

8 The conditions are that—

a the tenancy continues in effect with the same landlord and tenant under the lease, and

b any compensation paid to the tenant in consequence of the resumption of possession was calculated on the basis that the land would be restored under subsection (7).

32ZB Withdrawal of notice of resumption

1 Except where the tenant has given notice terminating the tenancy at the date of resumption of possession under section 32ZA(4), a landlord may withdraw a notice of resumption given in accordance with that section at any time before the date specified in section 32ZA(3)(d).

2 Where the Tenant Farming Commissioner has appointed a valuer under paragraph 3(2) of schedule 2A, the landlord must, at the same time as withdrawing the notice of resumption, send a copy of the withdrawal to the Commissioner.

3 Where a landlord withdraws a notice of resumption, the tenant is entitled to recover from the landlord any loss or expense reasonably incurred in reliance on the landlord’s notice of resumption.

3 In section 21 (notice to quit and notice of intention to quit) in subsection (1), after “20” insert “, 32ZA(4)”.

4 After schedule 2 insert—

Schedule 2A

Determination of compensation for value of resumed land

(introduced by section 32ZA(3) and (6))

1 Interpretation

In this schedule, “valuer” means a person appointed under paragraph 2(2), 3(2) or, as the case may be, 4(5)(b).

2 Appointment of valuer by parties

1 This paragraph applies where a notice of resumption has been given under section 32ZA(2).

2 The landlord must appoint as valuer—

a the person nominated in the notice given under section 32ZA(2), provided sub-paragraph (3) does not apply, or

b the person agreed on as the valuer by the parties during negotiations under sub-paragraph (5).

3 This sub-paragraph applies where—

a the tenant has given—

i notice to terminate the tenancy under section 32ZA(4), or

ii a notice of objection under sub-paragraph (4), or

b the period mentioned in section 32ZA(4) or, as the case may be, sub-paragraph (4) has not ended, no notice as mentioned in paragraph (a)(i) or (ii) having been given.

4 Where the tenant objects to a person nominated to be the valuer in a notice given under section 32ZA(2), the tenant must, within the period of 6 weeks beginning with the date on which the notice is given, give notice of the objection to the landlord.

5 Where a notice of objection by the tenant is given under sub-paragraph (4), the parties may enter into negotiations with a view to agreeing on a person to be appointed as the valuer, being a person who appears to both parties to meet the requirements mentioned in paragraph 3(4).

6 The landlord may request that the Tenant Farming Commissioner appoint a valuer under paragraph 3 where—

a the parties do not enter into negotiations of a kind mentioned in sub-paragraph (5), or

b no agreement is reached on the appointment of a person as valuer during such negotiations.

7 A request made under sub-paragraph (6)—

a must be copied to the tenant,

b must include—

i copies of the notice given under section 32ZA(2) and the notice of objection given under sub-paragraph (4), and

ii details of any negotiations undertaken under sub-paragraph (4), including any relevant information about persons rejected as valuer by either party.

8 A notice given under section 32ZA(2) is deemed to be of no effect if, within the period of 10 weeks beginning with the date on which the notice is given—

a the landlord does not appoint a person as valuer in accordance with sub-paragraph (2), or

b the landlord does not make a request under sub-paragraph (6).

9 Where the tenant gives notice under section 32ZA(4) to terminate the tenancy the landlord must, where a request has been made under sub-paragraph (6), give notice to the Commissioner and to any valuer appointed by virtue of that request.

3 Appointment of valuer by Tenant Farming Commissioner

1 This paragraph applies where the Tenant Farming Commissioner receives a request under paragraph 2(6).

2 The Commissioner must, before the expiry of the period mentioned in sub-paragraph (3), appoint as valuer a person, who meets the requirements mentioned in sub-paragraph (4), to—

a carry out the assessment mentioned in paragraph 6(1), and

b calculate the amount to be payable by the landlord to the tenant as compensation for the value of the land being resumed.

3 The period is—

a the period of 28 days beginning with the date on which the notice is served, or

b such other period as may be prescribed.

4 The requirements referred to in sub-paragraph (2) are that the person appears to the Commissioner—

a to be independent of the landlord and the tenant, and

b to possess 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.

5 The Commissioner must give notice in writing to the tenant and the landlord of the name and address of the person appointed under sub-paragraph (2).

4 Objection to valuer appointed by Tenant Farming Commissioner

1 This paragraph applies where the tenant or the landlord objects to the person appointed under paragraph 3(2) by the Tenant Farming 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 landlord or, as the case may be, the tenant, or

b does not possess the qualifications, knowledge and experience mentioned in paragraph 3(4)(b).

3 The tenant or, as the case may be, the landlord 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 3(5), 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.

5 Valuer’s expenses

1 The landlord is responsible for meeting the expenses incurred by the valuer in carrying out functions under this schedule.

2 Where expenses have been met by the Tenant Farming Commissioner in connection with the appointing of a valuer, the Commissioner is entitled to recover them from the landlord.

6 Assessment of value of land etc.

1 The valuer is to assess the value of the land being resumed—

a if sold with vacant possession, and

b if sold with the tenant still in occupation.

2 In assessing the value of the land under sub-paragraph (1), the valuer—

a is to have regard to the value that would be likely to be agreed between a reasonable seller and buyer of such land assuming the seller and buyer are, as respects the transaction, willing,

b is to take account—

i of when the landlord would in the normal course of events have been likely to recover vacant possession of the land from the tenant,

ii of the terms and conditions of any lease, other than the lease of the holding, affecting the land,

c is to take no account of—

i the existence of any person to whom the tenant could assign the lease of the holding under section 10A or to whom the lease could be bequeathed under section 11,

ii the absence of the period of time during which the land would, on the open market, be likely to be advertised and exposed for sale,

iii any factor attributable to any use of the land which is or would be unlawful,

iv any increase in the value of the land resulting from any improvements in relation to which the tenant would be entitled to compensation,

v any increase, or reduction, in the value of the land resulting from the use of any of the land, or changes to the land, for a purpose that is not one permitted by the lease of the holding,

vi any reduction in the value of the land resulting from any dilapidation or deterioration of, or damage to, fixed equipment or land caused or permitted by the tenant in relation to which the landlord would be entitled to compensation.

3 For the purposes of sub-paragraph (2)(c)(iv)—

a subject to paragraph (b), “improvements” is to be construed by reference to schedule 5, and

b the continuous adoption by the tenant of a standard of farming more beneficial to the land than the standard or system required by the lease or, in so far as no system of farming is so required, than the system of farming normally practised on comparable agricultural land in the district, is to be treated as an improvement executed at the tenant’s expense.

4 The valuer is to calculate, in accordance with paragraph 8, the amount to be payable by the landlord to the tenant as compensation for the value of the land being resumed.

5 The Scottish Ministers may by regulations amend sub-paragraphs (2) and (3) so as to—

a add,

b remove,

c vary the description of,

a matter which the valuer must have regard to, take account of or take no account of in assessing the value of the land under sub-paragraph (1).

6 Regulations under sub-paragraph (5) are subject to the affirmative procedure.

7 Valuation: further provision

1 The valuer is—

a to invite the landlord and the tenant to make written representations about the assessment under paragraph 6(1), and

b to have regard to any such representations.

2 The valuer may—

a enter onto land at reasonable times and having given reasonable notice, and

b make any reasonable request of the landlord and tenant (with which they must comply),

for the purposes of any assessment under paragraph 6(1).

3 In the event that the landlord or, as the case may be, tenant 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.

4 The 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 tenant or the landlord.

8 Amount payable by landlord to tenant

The amount to be payable by the landlord to the tenant in respect of the value of the land being resumed is to be half of the difference between the value of the land being resumed—

a if sold with vacant possession, and

b if sold with the tenant still in occupation,

(both as assessed under paragraph 6(1) or, as the case may be, 10(3)(a)).

9 Notice of assessment

1 The valuer must, before the expiry of the period mentioned in sub-paragraph (2), serve a notice in writing, specifying the matters mentioned in sub-paragraph (3), on—

a the tenant, and

b the landlord.

2 The period is the period of 8 weeks beginning with—

a the date on which the valuer is appointed by the landlord under paragraph 2(2),

b the date on which the period, within which an application under paragraph 4(3) may be made, expires, or

c where such an application is made, the date of the Land Court’s decision on it.

3 The matters are—

a the value, assessed under paragraph 6(1), of the land being resumed—

i if sold with vacant possession, and

ii if sold with the tenant still in occupation,

b the amount, calculated in accordance with paragraph 8, to be payable by the landlord to the tenant in respect of compensation for the value of the land being resumed.

4 The notice must also—

a be dated,

b state the date of valuation of each of the values and the amount mentioned in sub-paragraph (3), and

c set out how the valuer arrived at each of those values and that amount.

5 The notice may also contain or be accompanied by any other information that the valuer considers appropriate.

6 A notice served under sub-paragraph (1) is a “notice of assessment”.

10 Appeal to Lands Tribunal against valuer’s assessment

1 The tenant or the landlord may appeal to the Lands Tribunal against a notice of assessment.

2 An appeal under this paragraph 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 notice of assessment was served.

3 The Lands Tribunal may—

a reassess any value mentioned in paragraph 6(1) (and any factor affecting the value),

b determine the amount to be payable by the landlord to the tenant in respect of the value of the land being resumed.

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 landlord and the tenant, 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 paragraph.

7 The decision of the Lands Tribunal in an appeal under this paragraph is final.

11 Referral of certain matters by Lands Tribunal to Land Court

Where, in an appeal before the Lands Tribunal under paragraph 10, an issue of law arises which may competently be determined by the Land Court by virtue of this Act or the 2003 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.

^I2121 Resumption in respect of limited duration tenancies and repairing tenancies¶

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

2 In section 17 (resumption of land by landlord)—

a in subsection (2), after paragraph (a) insert—

b in subsection (3), for “28 days” substitute “6 weeks”,

c after subsection (4) insert—

3 After section 17 insert—

17A Withdrawal of notice of resumption

1 Except where the tenant has given notice terminating the tenancy at the date of resumption of possession under section 17(3), a landlord may withdraw a notice of resumption given in accordance with that section at any time before the date specified in section 17(2)(c).

2 But where the notice of resumption relates to the all of the land comprised in the lease, the notice may not be withdrawn without the tenant’s consent.

3 Where the Tenant Farming Commissioner has appointed a valuer under paragraph 3 of schedule 2, the landlord must, at the same time as withdrawing the notice of resumption, send a copy of the withdrawal to the Commissioner.

4 Where a landlord withdraws a notice of resumption, the tenant is entitled to recover from the landlord any loss or expense reasonably incurred in reliance on the landlord’s notice of resumption.

4 In section 91 (orders and regulations)—

a in subsection (3)(b), after “38P(2)” insert “or paragraph 3(3)(b) of schedule 2”,

b in subsection (4)(b), after “74A” insert “or paragraph 6(5) of schedule 2”.

5 In section 93 (interpretation), after the definition of “tenant” insert—

6 After the schedule insert—

Schedule 2

Determination of compensation for value of land resumed

(introduced by section 17(2) and (4A))

1 Interpretation

In this schedule, “valuer” means a person appointed under paragraph 2(2), 3(2) or, as the case may be, 4(5)(b).

2 Appointment of valuer by parties

1 This paragraph applies where a notice of resumption has been given under section 17(2).

2 The landlord must appoint as valuer—

a the person nominated in the notice given under section 17(2), provided sub-paragraph (3) does not apply, or

b the person agreed on as the valuer by the parties during negotiations under sub-paragraph (5).

3 This sub-paragraph applies where—

a the tenant has given—

i notice to terminate the tenancy under section 17(4), or

ii a notice of objection under sub-paragraph (4), or

b the period mentioned in section 17(4) or, as the case may be, sub-paragraph (4) has not ended, no notice as mentioned in paragraph (a)(i) or (ii) having been given.

4 Where the tenant objects to a person nominated to be the valuer in a notice given under section 17(2), the tenant must, within the period of 6 weeks beginning with the date on which the notice is given, give notice of the objection to the landlord.

6 The landlord may request that the Tenant Farming Commissioner appoint a valuer under paragraph 3 where—

a the parties do not enter into negotiations of a kind mentioned in sub-paragraph (5), or

b no agreement is reached on the appointment of a person as valuer during such negotiations.

7 A request made under sub-paragraph (6)—

a must be copied to the tenant,

b must include—

i copies of the notice given under section 17(2) and the notice of objection given under sub-paragraph (4), and

ii details of any negotiations undertaken under sub-paragraph (5), including any relevant information about persons rejected as valuer by either party.

8 A notice given under section 17(2) is deemed to be of no effect if, within the period of 10 weeks beginning with the date on which the notice is given—

a the landlord does not appoint a person as valuer in accordance with sub-paragraph (2), or

b the landlord does not make a request under sub-paragraph (6).

9 Where the tenant gives notice under section 17(3) to terminate the tenancy the landlord must, where a request has been made under sub-paragraph (6), give notice to the Commissioner and to any valuer appointed by virtue of that request.

3 Appointment of valuer by Tenant Farming Commissioner

1 This paragraph applies where the Tenant Farming Commissioner receives a request under paragraph 2(6).

2 The Commissioner must, before the expiry of the period mentioned in sub-paragraph (3), appoint as valuer a person, who meets the requirements mentioned in sub-paragraph (4), to—

a carry out the assessment mentioned in paragraph 6(1), and

b calculate the amount to be payable by the landlord to the tenant as compensation for the value of the land being resumed.

3 The period is—

a the period of 28 days beginning with the date on which the notice is served, or

b such other period specified by the Scottish Ministers by regulations.

4 The requirements referred to in sub-paragraph (2) are that the person appears to the Commissioner—

a to be independent of the landlord and the tenant, and

b to possess 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.

5 The Commissioner must give notice in writing to the tenant and the landlord of the name and address of the person appointed under sub-paragraph (2).

4 Objection to valuer appointed by Tenant Farming Commissioner

1 This paragraph applies where the tenant or the landlord objects to the person appointed under paragraph 3(2) 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 landlord or, as the case may be, the tenant, or

b does not possess the qualifications, knowledge and experience mentioned in paragraph 3(4)(b).

3 The tenant or, as the case may be, the landlord 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 3(5), 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.

5 Valuer’s expenses

1 The landlord is responsible for meeting the expenses incurred by the valuer in carrying out functions under this schedule.

2 Where expenses have been met by the Tenant Farming Commissioner in connection with the appointing of a valuer, the Commissioner is entitled to recover them from the landlord.

6 Assessment of value of land etc.

1 The valuer is to assess the value of the land being resumed—

a if sold with vacant possession, and

b if sold with the tenant still in occupation.

2 In assessing the value of the land under sub-paragraph (1), the valuer—

a is to have regard to the value that would be likely to be agreed between a reasonable seller and buyer of such land assuming the seller and buyer are, as respects the transaction, willing,

b is to take account—

i of when the landlord would in the normal course of events have been likely to recover vacant possession of the land from the tenant,

ii of the terms and conditions of any lease, other than the lease of the land comprised in the tenancy, affecting the land,

c is to take no account of—

i the existence of any person to whom the tenant could assign the lease under section 7, 7B or, as the case may be, 7D or to whom the lease could be bequeathed under section 21,

ii the absence of the period of time during which the land would, on the open market, be likely to be advertised and exposed for sale,

iii any factor attributable to any use of the land which is or would be unlawful,

iv any increase in the value of the land resulting from any improvements in relation to which the tenant would be entitled to compensation under section 45,

v any increase, or reduction, in the value of the land resulting from the use of any of the land, or changes to the land, for a purpose that is not one permitted by the lease,

3 For the purposes of sub-paragraph (2)(c)(iv)—

a subject to paragraph (b), “improvements” is to be construed by reference to schedule 5 of the 1991 Act, and