The Agriculture (Lump Sum Payment) (England) Regulations 2022

Agricultural land

6.—(1) Subject to paragraph (3), the applicant must, no later than the scheme end date, complete the transfer to any person, other than a connected person, of—

(a) all agricultural land that was at the applicant’s disposal on 17th May 2021; and

(b) where relevant—

(i) a proportionate amount of any rights of common attached to the land referred to in paragraph (a); and

(ii) any rights of common in gross exercisable by the applicant over land in England but which are not attached to that land.

(2) For the purposes of paragraph (1)—

(a) “connected person” has the meaning given in regulation 7;

(b) “rights of common” means any rights to graze animals or rights to pannage that are attached to land and are exercisable over land that is common land;

(c) “rights of common in gross” means any rights to graze animals or rights to pannage that are exercisable over land that is common land but are not attached to land;

(d) “proportionate amount of any rights of common” is the amount of any rights of common that is equivalent in percentage terms to the amount of agricultural land at the applicant’s disposal on 17th May 2021 that is to be transferred by the scheme end date, as a percentage of the land to which the rights are attached;

(e) “common land” means—

(i) land in England that is registered as common land in a register of common land kept under section 3 of the Commons Registration Act 1965(1) or Part 1 of the Commons Act 2006(2); or

(ii) any other land in England used in common with other persons, whether or not to the exclusion of the owner of the land, that is subject to rights of common or rights of common in gross.

(3) Paragraph (1) does not apply—

(a) to a de minimis amount of 5 hectares of agricultural land that was at the applicant’s disposal on 17th May 2021;

(b) to any agricultural land that was at the applicant’s disposal on 17th May 2021 and which has, by the scheme end date, been planted with trees under a woodland creation scheme established under—

(i) section 1(1) of the Forestry Act 1979(3); or

(ii) section 98(1) of the Natural Environment and Rural Communities Act 2006(4); or

(c) in the circumstances described in paragraph (4).

(4) The circumstances referred to in paragraph (3)(c) are that—

(a) the applicant is—

(i) a partnership and the lump sum is payable in respect of one or more partners in the partnership, with an interest, or a combined interest, of 50% or more in the profits of the partnership; or

(ii) a body corporate and the lump sum is payable in respect of one or more members of the body corporate, who, solely or jointly, hold 50% or more of the equity share capital; and

(b) the agricultural land that was at the applicant’s disposal on 17th May 2021 is owned or leased by a person other than a partner or member referred to in paragraph (a)(i) or (ii).

(5) The Secretary of State may extend the period referred to in paragraph (1) if the applicant provides evidence to show that—

(a) the transfer of an agricultural holdings tenancy to a successor in accordance with Part IV of the Agricultural Holdings Act 1986 is the subject of proceedings before a court, tribunal or arbitrator; or

(b) a grant of probate which affects the agricultural land is outstanding.

(6) In paragraph (1), “transfer” means—

(a) in relation to agricultural land—

(i) where the applicant is the owner of the land, by sale or gift or by lease under a farm business tenancy for a term of no less than 5 years;

(ii) where the applicant is a tenant occupying the land under a farm business tenancy, by surrender or assignment of the tenancy; and

(iii) where the applicant is a tenant occupying the land under an agricultural holdings tenancy, by the surrender or assignment of the tenancy or by the transfer of the tenancy to a successor in accordance with Part IV of the Agricultural Holdings Act 1986;

(b) in relation to any rights of common or rights of common in gross—

(i) that are owned by the applicant, by sale, gift or lease for a term of no less than 5 years; and

(ii) that are leased by the applicant, by surrender or assignment of the lease.

(1)

1965 c. 64; section 3 was amended by section 53 of the Commons Act 2006 (c. 26).

(2)

2006 c. 26; Part 1 was amended by sections 14 to 17 of the Growth and Infrastructure Act 2013 and section 50 of the Church Property Measure 2018.

(3)

1979 c. 21; section 1(1) was amended by S.I. 1999/1747, 2013/755 and 2019/734.

(4)

2006 c. 16; section 98(1) was amended by S.I. 2016/992.