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Agriculture Act 1986

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Changes over time for: Cross Heading: Tenant’s right to compensation

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Version Superseded: 30/11/2017

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Point in time view as at 19/10/2006.

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Tenant’s right to compensationE+W+S

2(1)Subject to this Schedule, where, on the termination of the lease, the tenant has milk quota registered as his in relation to a holding consisting of or including the tenancy, he shall be entitled, on quitting the tenancy, to obtain from his landlord a payment—E+W+S

(a)if the tenant had milk quota allocated to him in relation to a holding consisting of or including the tenancy (“allocated quota”), in respect of so much of the relevant quota as consists of allocated quota; and

(b)if the tenant had quota allocated to him as aforesaid or was in occupation of the tenancy as a tenant on 2nd April 1984 (whether or not under the lease which is terminating), in respect of so much of the relevant quota as consists of transferred quota by virtue of a transaction the cost of which was borne wholly or partly by him.

(2)In sub-paragraph (1) above—

  • “the relevant quota” means—

    (a)

    where the holding consists only of the tenancy, the milk quota registered in relation to the holding; and

    (b)

    otherwise, such part of that milk quota as falls to be apportioned to the tenancy on the termination of the lease;

  • [F1“termination of the lease” shall include termination of the lease under section 2(1) of the Agricultural Holdings (Scotland) Act 2003 (asp 11) (conversion from 1991 Act tenancy to limited duration tenancy).]

  • “transferred quota” means milk quota transferred to the tenant by virtue of the transfer to him of the whole or part of a holding.

(3)A tenant shall not be entitled to more than one payment under this paragraph in respect of the same tenancy.

(4)Nothing in this paragraph shall prejudice the right of a tenant to claim any compensation to which he may be entitled under an agreement in writing, in lieu of any payment provided by this paragraph.

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