Agriculture Act 1986

16 Rent arbitrations: milk quotas, Scotland. E+W+S

(1) Paragraph 1 and the other provisions of Schedule 2 to this Act referred to therein shall have effect for the interpretation of this section, as they do in relation to that Schedule.

(2) This section applies where an arbiter or the Scottish Land Court is dealing with a reference under—

(a) section 6 of the 1886 Act;

(b) section 32(7) of the 1911 Act;

(c) [F1 section 13 of the 1991 Act]; or

(d) section 5(3) of the 1955 Act,

(determination of rent) and the tenant has milk quota, including transferred quota by virtue of a transaction the cost of which was borne wholly or partly by him, registered as his in relation to a holding consisting of or including the tenancy.

(3) Where this section applies, the arbiter or, as the case may be, the Land Court shall disregard any increase in the rental value of the tenancy which is due to—

(a) where the tenancy comprises the holding, the proportion of the transferred quota which reflects the proportion of the cost of the transaction borne by the tenant;

(b) where such transferred quota affects part only of the tenancy, that proportion of so much of the transferred quota as would fall to be apportioned to the tenancy under the 1986 Regulations on a change of occupation of the tenancy.

(4) For the purposes of determining whether transferred quota has been acquired by virtue of a transaction the cost of which was borne wholly or partly by the tenant any payment by a tenant when he was granted a lease, or when a lease was assigned to him, shall be disregarded.

(5) Paragraph 3 of Schedule 2 to this Act (in so far as it relates to transferred quota) shall apply in relation to the operation of this section as it applies in relation to the operation of that Schedule.

(6) This section shall apply where paragraph 4 of Schedule 2 to this Act applies, and in any question between the original landlord and the head tenant, this section shall apply as if any transferred quota acquired by the sub-tenant by virtue of any transaction during the subsistence of the sub-lease had been acquired by the head tenant by virtue of that transaction.

(7) [F2 Section 79 of the 1991 Act] (Crown land) shall have effect in relation to this section as it does in relation to that Act.

Textual Amendments

F1 Words in s. 16(2) substituted (25.9.1991) by Agricultural Holdings (Scotland) Act 1991 (c. 55, SIF 2:3), ss. 88(1), 89(2), Sch. 11 para. 44(a), (with s. 45(3), Sch. 12 para. 3)

F2 Words in s. 16(7) substituted (25.9.1991) by Agricultural HOldings (Scotland) Act 1991 (c. 55, SIF 2:3), ss. 88(1), 89(2), Sch. 11 para. 44(b), (with s. 45(3), Sch. 12 para. 3)