Agricultural Tenancies Act 1995

Part I E+W GENERAL PROVISIONS

Farm business tenancies E+W

1 Meaning of “farm business tenancy”. E+W

(1) A tenancy is a “farm business tenancy” for the purposes of this Act if—

(a) it meets the business conditions together with either the agriculture condition or the notice conditions, and

(b) it is not a tenancy which, by virtue of section 2 of this Act, cannot be a farm business tenancy.

(2) The business conditions are—

(a) that all or part of the land comprised in the tenancy is farmed for the purposes of a trade or business, and

(b) that, since the beginning of the tenancy, all or part of the land so comprised has been so farmed.

(3) The agriculture condition is that, having regard to—

(a) the terms of the tenancy,

(b) the use of the land comprised in the tenancy,

(c) the nature of any commercial activities carried on on that land, and

(d) any other relevant circumstances,

the character of the tenancy is primarily or wholly agricultural.

(4) The notice conditions are—

(a) that, on or before the relevant day, the landlord and the tenant each gave the other a written notice—

(i) identifying (by name or otherwise) the land to be comprised in the tenancy or proposed tenancy, and

(ii) containing a statement to the effect that the person giving the notice intends that the tenancy or proposed tenancy is to be, and remain, a farm business tenancy, and

(b) that, at the beginning of the tenancy, having regard to the terms of the tenancy and any other relevant circumstances, the character of the tenancy was primarily or wholly agricultural.

(5) In subsection (4) above “the relevant day” means whichever is the earlier of the following—

(a) the day on which the parties enter into any instrument creating the tenancy, other than an agreement to enter into a tenancy on a future date, or

(b) the beginning of the tenancy.

(6) The written notice referred to in subsection (4) above must not be included in any instrument creating the tenancy.

(7) If in any proceedings—

(a) any question arises as to whether a tenancy was a farm business tenancy at any time, and

(b) it is proved that all or part of the land comprised in the tenancy was farmed for the purposes of a trade or business at that time,

it shall be presumed, unless the contrary is proved, that all or part of the land so comprised has been so farmed since the beginning of the tenancy.

(8) Any use of land in breach of the terms of the tenancy, any commercial activities carried on in breach of those terms, and any cessation of such activities in breach of those terms, shall be disregarded in determining whether at any time the tenancy meets the business conditions or the agriculture condition, unless the landlord or his predecessor in title has consented to the breach or the landlord has acquiesced in the breach.

Modifications etc. (not altering text)

C1 S. 1 modified (1.9.1995) by 1995 c. 8, ss. 40, 41(2), Sch. para. 34 (with s. 37) (which Act inserted s. 14B into 1958 c. 69).

2 Tenancies which cannot be farm business tenancies. E+W

(1) A tenancy cannot be a farm business tenancy for the purposes of this Act if—

(a) the tenancy begins before 1st September 1995, or

(b) it is a tenancy of an agricultural holding beginning on or after that date with respect to which, by virtue of section 4 of this Act, the M1 Agricultural Holdings Act 1986 applies.

(2) In this section “agricultural holding” has the same meaning as in the M2 Agricultural Holdings Act 1986.

Marginal Citations

M1 1986 c. 5.

M2 1986 c. 5.

3 Compliance with notice conditions in cases of surrender and re-grant. E+W

(1) This section applies where—

(a) a tenancy (“the new tenancy”) is granted to a person who, immediately before the grant, was the tenant under a farm business tenancy (“the old tenancy”) which met the notice conditions specified in section 1(4) of this Act,

(b) the condition in subsection (2) below or the condition in subsection (3) below is met, and

(c) except as respects the matters mentioned in subsections (2) and (3) below and matters consequential on them, the terms of the new tenancy are substantially the same as the terms of the old tenancy.

(2) The first condition referred to in subsection (1)(b) above is that the land comprised in the new tenancy is the same as the land comprised in the old tenancy, apart from any changes in area which are small in relation to the size of the holding and do not affect the character of the holding.

(3) The second condition referred to in subsection (1)(b) above is that the old tenancy and the new tenancy are both fixed term tenancies, but the term date under the new tenancy is earlier than the term date under the old tenancy.

(4) Where this section applies, the new tenancy shall be taken for the purposes of this Act to meet the notice conditions specified in section 1(4) of this Act.

(5) In subsection (3) above, “the term date”, in relation to a fixed term tenancy, means the date fixed for the expiry of the term.

Exclusion of Agricultural Holdings Act 1986 E+W

4 Agricultural Holdings Act 1986 not to apply in relation to new tenancies except in special cases. E+W

(1) The M3 Agricultural Holdings Act 1986 (in this section referred to as “the 1986 Act”) shall not apply in relation to any tenancy beginning on or after 1st September 1995 (including any agreement to which section 2 of that Act would otherwise apply beginning on or after that date), except[F1 (subject to subsection (2B) below)] any tenancy of an agricultural holding which—

(a) is granted by a written contract of tenancy entered into before 1st September 1995 and indicating (in whatever terms) that the 1986 Act is to apply in relation to the tenancy,

(b) is obtained by virtue of a direction F2 ... under section 39 or 53 of the 1986 Act,

(c) is granted (following a direction under section 39 of that Act) in circumstances falling within section 45(6) of that Act,

(d) is granted on an agreed succession by a written contract of tenancy indicating (in whatever terms) that Part IV of the 1986 Act is to apply in relation to the tenancy,

(e) is created by the acceptance of a tenant, in accordance with the provisions as to compensation known as the “Evesham custom” and set out in subsections (3) to (5) of section 80 of the 1986 Act, on the terms and conditions of the previous tenancy, F3 ...

(f) is granted to a person who, immediately before the grant of the tenancy, was the tenant of the holding, or of any agricultural holding which comprised the whole or a substantial part of the land comprised in the holding, under a tenancy in relation to which the 1986 Act applied [F4 , and is so granted because an agreement between the parties (not being an agreement expressed to take effect as a new tenancy between the parties) has effect as an implied surrender followed by the grant of the tenancy, or]

[F5 (g) is granted to a person who, immediately before the grant of the tenancy, was the tenant of the holding, or of any agricultural holding which comprised the whole or a substantial part of the land comprised in the holding, under a tenancy in relation to which the 1986 Act applied, and is so granted by a written contract of tenancy indicating (in whatever terms) that the 1986 Act is to apply in relation to the tenancy.]

(2) For the purposes of subsection (1)(d) above, a tenancy (“the current tenancy”) is granted on an agreed succession if, and only if,—

(a) the previous tenancy of the holding or a related holding was a tenancy in relation to which Part IV of the 1986 Act applied, F6 ...

[F7 (b) the current tenancy is granted to a person (alone or jointly with other persons) who, if the tenant under that previous tenancy (“the previous tenant”) had died immediately before the grant, would have been his close relative, and

(c) either of the conditions in subsection (2A) below is satisfied.]

[F8 (2A) The conditions referred to in subsection (2)(c) above are—

(a) the current tenancy is granted to a person (alone or jointly with other persons) who was or had become the sole or sole remaining applicant for a direction [F9 under section 39 or 53 of the 1986 Act] for a tenancy, and

(b) the current tenancy—

(i) is granted as a result of an agreement between the landlord and the previous tenant, and

(ii) is granted, and begins, before the date of the giving of any retirement notice by the previous tenant, or if no retirement notice is given, before the date of death of the previous tenant.]

[F10 (2B) The 1986 Act shall not apply by virtue of subsection (1)(f) or (g) above in relation to the tenancy of an agricultural holding (“the current holding”) where—

(a) the whole or a substantial part of the land comprised in the current holding was comprised in an agricultural holding (“the previous holding”) which was subject to a tenancy granted after the commencement of this subsection in relation to which the 1986 Act applied by virtue of subsection (1)(f) or (g) above;

(b) the whole or a substantial part of the land comprised in the previous holding was comprised in an agricultural holding (“the original holding”) which was at the commencement of this subsection subject to a tenancy in relation to which the 1986 Act applied; and

(c) the land comprised in the original holding does not, on the date of the grant of the tenancy of the current holding, comprise the whole or a substantial part of the land comprised in the current holding.]

[F11 (2C) The references in subsections (1)(g) and (2B) above to a substantial part of the land comprised in the holding mean a substantial part determined by reference to either area or value.]

(3) In this section—

(a) “agricultural holding” and “contract of tenancy” have the same meaning as in the 1986 Act, F12 ...

(b) “close relative” and “related holding” have the meaning given by section 35(2) of that Act[F13 , and

(c) “retirement notice” has the meaning given by section 49(3) of that Act.]

Textual Amendments

F1 Words in s. 4(1) inserted (19.10.2006) by Regulatory Reform (Agricultural Tenancies) (England and Wales) Order 2006 (S.I. 2006/2805), arts. 1(1)(b), 12(2) (with arts. 10, 12(12))

F2 Words in s. 4(1)(b) omitted (1.7.2013) by virtue of The Transfer of Tribunal Functions Order 2013 (S.I. 2013/1036), art. 1, Sch. 1 para. 216(a) (with Sch. 3)

F3 Word in s. 4(1)(e) repealed (19.10.2006) by Regulatory Reform (Agricultural Tenancies) (England and Wales) Order 2006 (S.I. 2006/2805), arts. 1(1)(b), 12(3), Sch. 2 (with arts. 10, 12(12))

F4 Words in s. 4(1)(f) substituted (19.10.2006) by Regulatory Reform (Agricultural Tenancies) (England and Wales) Order 2006 (S.I. 2006/2805), arts. 1(1)(b), 12(4) (with arts. 10, 12(12))

F5 S. 4(1)(g) inserted (19.10.2006) by Regulatory Reform (Agricultural Tenancies) (England and Wales) Order 2006 (S.I. 2006/2805), arts. 1(1)(b), 12(5) (with arts. 10, 12(12))

F6 Word in s. 4(2)(a) repealed (19.10.2006) by Regulatory Reform (Agricultural Tenancies) (England and Wales) Order 2006 (S.I. 2006/2805), arts. 1(1)(b), 12(6), Sch. 2 (with arts. 10, 12(12))

F7 S. 4(2)(b)(c) substituted for s. 4(2)(b) (19.10.2006) by Regulatory Reform (Agricultural Tenancies) (England and Wales) Order 2006 (S.I. 2006/2805), arts. 1(1)(b), 12(7) (with arts. 10, 12(12))

F8 S. 4(2A) inserted (19.10.2006) by Regulatory Reform (Agricultural Tenancies) (England and Wales) Order 2006 (S.I. 2006/2805), arts. 1(1)(b), 12(8) (with arts. 10, 12(12))

F9 Words in s. 4(2A)(a) substituted (1.7.2013) by The Transfer of Tribunal Functions Order 2013 (S.I. 2013/1036), art. 1, Sch. 1 para. 216(b) (with Sch. 3)

F10 S. 4(2B) inserted (19.10.2006) by Regulatory Reform (Agricultural Tenancies) (England and Wales) Order 2006 (S.I. 2006/2805), arts. 1(1)(b), 12(9) (with arts. 10, 12(12))

F11 S. 4(2C) inserted (19.10.2006) by Regulatory Reform (Agricultural Tenancies) (England and Wales) Order 2006 (S.I. 2006/2805), arts. 1(1)(b), 12(10) (with arts. 10, 12(12))

F12 Word in s. 4(3)(a) repealed (19.10.2006) by Regulatory Reform (Agricultural Tenancies) (England and Wales) Order 2006 (S.I. 2006/2805), arts. 1(1)(b), 12(11)(a), Sch. 2 (with arts. 10, 12(12))

F13 S. 4(3)(c) and word inserted (19.10.2006) by Regulatory Reform (Agricultural Tenancies) (England and Wales) Order 2006 (S.I. 2006/2805), arts. 1(1)(b), 12(11)(b) (with arts. 10, 12(12))

Marginal Citations

M3 1986 c. 5.

Termination of the tenancy E+W

5 Tenancies for more than two years to continue from year to year unless terminated by notice. E+W

(1) A farm business tenancy for a term of more than two years shall, instead of terminating on the term date, continue (as from that date) as a tenancy from year to year, but otherwise on the terms of the original tenancy so far as applicable, unless at least twelve months F14 ... before the term date a written notice has been given by either party to the other of his intention to terminate the tenancy.

(2) In subsection (1) above “the term date”, in relation to a fixed term tenancy, means the date fixed for the expiry of the term.

(3) For the purposes of section 140 of the M4 Law of Property Act 1925 (apportionment of conditions on severance of reversion), a notice under subsection (1) above shall be taken to be a notice to quit.

(4) This section has effect notwithstanding any agreement to the contrary.

Textual Amendments

F14 Words in s. 5(1) repealed (19.10.2006) by Regulatory Reform (Agricultural Tenancies) (England and Wales) Order 2006 (S.I. 2006/2805), arts. 1(1)(b), 13 (with art. 10)

Marginal Citations

M4 1925 c. 20.

6 Length of notice to quit. E+W

(1) Where a farm business tenancy is a tenancy from year to year, a notice to quit the holding or part of the holding shall (notwithstanding any provision to the contrary in the tenancy) be invalid unless—

(a) it is in writing,

(b) it is to take effect at the end of a year of the tenancy, and

(c) it is given at least twelve months F15 ... before the date on which it is to take effect.

(2) Where, by virtue of section 5(1) of this Act, a farm business tenancy for a term of more than two years is to continue (as from the term date) as a tenancy from year to year, a notice to quit which complies with subsection (1) above and which is to take effect on the first anniversary of the term date shall not be invalid merely because it is given before the term date; and in this subsection “the term date” has the meaning given by section 5(2) of this Act.

(3) Subsection (1) above does not apply in relation to a counter-notice given by the tenant by virtue of subsection (2) of section 140 of the M5 Law of Property Act 1925 (apportionment of conditions on severance of reversion).

Textual Amendments

F15 Words in s. 6(1)(c) repealed (19.10.2006) by Regulatory Reform (Agricultural Tenancies) (England and Wales) Order 2006 (S.I. 2006/2805), arts. 1(1)(b), 13 (with art. 10)

Marginal Citations

M5 1925 c. 20.

7 Notice required for exercise of option to terminate tenancy or resume possession of part. E+W

(1) Where a farm business tenancy is a tenancy for a term of more than two years, any notice to quit the holding or part of the holding given in pursuance of any provision of the tenancy shall (notwithstanding any provision to the contrary in the tenancy) be invalid unless it is in writing and is given at least twelve months F16 ... before the date on which it is to take effect.

(2) Subsection (1) above does not apply in relation to a counter-notice given by the tenant by virtue of subsection (2) of section 140 of the M6 Law of Property Act 1925 (apportionment of conditions on severance of reversion).

(3) Subsection (1) above does not apply to a tenancy which, by virtue of subsection (6) of section 149 of the M7 Law of Property Act 1925 (lease for life or lives or for a term determinable with life or lives or on the marriage of[F17 , or formation of a civil partnership by, ] the lessee), takes effect as such a term of years as is mentioned in that subsection.

Textual Amendments

F16 Words in s. 7(1) repealed (19.10.2006) by Regulatory Reform (Agricultural Tenancies) (England and Wales) Order 2006 (S.I. 2006/2805), arts. 1(1)(b), 13 (with art. 10)

F17 Words in s. 7(3) inserted (5.12.2005) by Civil Partnership Act 2004 (c. 33), s. 263(2), Sch. 8 para. 49; S.I. 2005/3175, art. 2(1), Sch. 1

Marginal Citations

M6 1925 c. 20.

M7 1925 c. 20.

Tenant’s right to remove fixtures and buildings E+W

8 Tenant’s right to remove fixtures and buildings. E+W

(1) Subject to the provisions of this section—

(a) any fixture (of whatever description) affixed, whether for the purposes of agriculture or not, to the holding by the tenant under a farm business tenancy, and

(b) any building erected by him on the holding,

may be removed by the tenant at any time during the continuance of the tenancy or at any time after the termination of the tenancy when he remains in possession as tenant (whether or not under a new tenancy), and shall remain his property so long as he may remove it by virtue of this subsection.

(2) Subsection (1) above shall not apply—

(a) to a fixture affixed or a building erected in pursuance of some obligation,

(b) to a fixture affixed or a building erected instead of some fixture or building belonging to the landlord,

(c) to a fixture or building in respect of which the tenant has obtained compensation under section 16 of this Act or otherwise, or

(d) to a fixture or building in respect of which the landlord has given his consent under section 17 of this Act on condition that the tenant agrees not to remove it and which the tenant has agreed not to remove.

(3) In the removal of a fixture or building by virtue of subsection (1) above, the tenant shall not do any avoidable damage to the holding.

(4) Immediately after removing a fixture or building by virtue of subsection (1) above, the tenant shall make good all damage to the holding that is occasioned by the removal.

(5) This section applies to a fixture or building acquired by a tenant as it applies to a fixture or building affixed or erected by him.

(6) Except as provided by subsection (2)(d) above, this section has effect notwithstanding any agreement or custom to the contrary.

(7) No right to remove fixtures that subsists otherwise than by virtue of this section shall be exercisable by the tenant under a farm business tenancy.

[F18 8A Reference of certain requests for consent or variation to arbitration: Wales E+W

(1) This section applies to a farm business tenancy where the land comprised in the tenancy is in Wales.

(2) A tenant may, by notice in writing given to the landlord, refer to arbitration under this Act a request made by the tenant to the landlord where—

(a) the request falls within subsection (3), and

(b) no agreement has been reached with the landlord on the request.

(3) A request falls within this subsection if—

(a) it is a request for—

(i) the landlord’s consent to a matter which under the terms of the tenancy requires such consent, or

(ii) a variation of the terms of the tenancy, and

(b) it is made for the purposes of—

(i) enabling the tenant to request or apply for relevant financial support, or

(ii) complying with a statutory duty applicable to the tenant.

(4) Subsection (5) applies where the tenant has given notice under subsection (2) but an arbitrator has not been appointed by agreement before the end of the period of two months beginning with the day on which the notice was given.

(5) The tenant or the landlord may apply to a professional authority for the appointment of an arbitrator by that authority, but once either party has made such an application the other may no longer do so.

(6) An arbitrator, on a reference made under subsection (2), may—

(a) determine that the landlord must comply with the request (either in full or in part),

(b) determine that the landlord may refuse to comply with the request, or

(c) make any other award or determination permitted by regulations.

(7) The Welsh Ministers may by regulations make provision—

(a) about conditions to be met before a reference may be made under subsection (2);

(b) about the awards or determinations that may be made by an arbitrator, which may include making an order for a variation in the rent payable under the tenancy or for the payment of compensation or costs;

(c) about the time at which, or the conditions subject to which, an award or determination may be expressed to take effect;

(d) restricting a tenant’s ability to make subsequent references to arbitration where a reference to arbitration has already been made under subsection (2) in relation to the same tenancy.

(8) In this section—

• “relevant financial support” means financial support under—

  (a)

  section 8 of the Agriculture (Wales) Act 2023 (“the 2023 Act”) (Welsh Ministers’ power to provide support),

  (b)

  a scheme of the sort mentioned in section 9(7) of the 2023 Act (meaning of “third party scheme” for purposes of power to provide support),

  (c)

  the basic payment scheme, as defined in section 16 of the 2023 Act (power to modify legislation governing the basic payment scheme),

  (d)

  legislation relating to the financing, management and monitoring of the common agricultural policy, as defined in section 17 of the 2023 Act (power to modify legislation relating to the common agricultural policy),

  (e)

  legislation relating to support for apiculture, as defined in section 18 of the 2023 Act (power to modify legislation relating to support for apiculture),

  (f)

  legislation relating to support for rural development, as defined in section 19 of the 2023 Act (support for rural development), or

  (g)

  section 22 of the 2023 Act (powers of Welsh Ministers to give financial assistance in exceptional market conditions);

• “statutory duty” means a duty imposed by or under—

  (a)

  an Act of Parliament;

  (b)

  an Act of Senedd Cymru or an Assembly Measure;

  (c)

  retained direct EU legislation.]

Textual Amendments

F18 S. 8A inserted (15.7.2024) by Agriculture (Wales) Act 2023 (asc 4), ss. 24(4), 56(4); S.I. 2024/789, art. 2