PART 2Application of Part 3A of the 1991 Act to relevant partnerships

Relevant partnerships2

1

This regulation applies where the tenant of an agricultural holding to which section 32A(2) of the 1991 Act applies is a relevant partnership.

2

A relevant partnership is a limited partnership in which a limited partner is—

a

the landlord,

b

an associate of the landlord, or

c

a partnership or company in which the landlord has a relevant interest.

3

For the purposes of paragraph (2)(c), a landlord has a relevant interest in a partnership or company if the landlord or an associate of the landlord is—

a

a partner in the partnership,

b

a partner in a partnership which forms part of the partnership,

c

a shareholder in the company, or

d

the holder of a standard security or floating charge over an interest in the tenancy where the partnership or company is a partner in the tenant.

4

For the purposes of this regulation, a person is an associate of a landlord if the person is—

a

where the landlord is a partnership or a company, a partner in the landlord or, as the case may be, a shareholder in the landlord,

b

where an associate of the landlord is a partnership or a company, a partner in or, as the case may be, a shareholder in that associate,

c

an agent of the landlord or of an associate of the landlord, or

d

a member of the landlord’s family.

5

Section 71 of the 2003 Act applies for the purposes of paragraph (4)(d) as it applies for the purposes of section 70(8)(d) of that Act.

Modifications where tenant is a relevant partnership3

Where regulation 2 applies, Part 3A of the 1991 Act has effect as if the following were omitted—

a

in section 32A(1), the words “or, failing which, assign the lease to an individual who is a new entrant to, or who is progressing, in farming”,

b

in section 32F(3), paragraph (b),

c

section 32U,

d

in section 32W, the definitions of “new entrant to farming” and “person progressing in farming”.