3(1)Subject to the provisions of this paragraph, in this Schedule "the relevant interest" means, in relation to any expenditure falling within paragraph 1(1) above, the major interest in the agricultural or forestry land concerned to which the person who incurred the expenditure was entitled when he incurred it.
(2)Where, when he incurs expenditure falling within paragraph 1(1) above, a person is entitled to two or more major interests in the agricultural or forestry land concerned, and one of those interests is an interest which is in reversion on all the others, that interest is the relevant interest for the purposes of this Schedule.
(3)A major interest shall not cease to be the relevant interest tor the purposes of this Schedule by reason of the creation of any lease (or other interest) to which the interest is subject; and where the relevant interest is a lease which is extinguished—
(a)by reason of the surrender thereof, or
(b)on the person entitled thereto acquiring the interest which is the reversion on the relevant interest,
then, unless a new lease of the land concerned is granted to take effect on the extinguishment of the former lease, the interest into which that lease merges shall thereupon become the relevant interest.
(4)In the application of this paragraph to Scotland "reversion" means the interest of a landlord in property subject to a lease.