Agricultural Tenancies Act 2008

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AT 15 of 2008

AGRICULTURAL TENANCIES ACT 2008

Agricultural Tenancies Act 2008 Index


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AGRICULTURAL TENANCIES ACT 2008

Index Section Page

PART 1 – GENERAL PROVISIONS 7

Farm business tenancies 7

1 Meaning of ‘farm business tenancy’ ............................................................................ 7
2 Tenancies which cannot be farm business tenancies ................................................. 8
3 Compliance with notice conditions in cases of surrender and re-grant ................. 9
Exclusion of Agricultural Holdings Act 1969 9

4 Agricultural Holding Act 1969 not to apply in relation to new tenancies
expect in special cases .................................................................................................... 9
Termination of the tenancy 11

5 Tenancies for more than 5 years to continue from year to year unless
terminated by notice ..................................................................................................... 11
6 Length of notice to quit ................................................................................................ 11
7 Notice required for exercise of option to terminate tenancy or resume
possession of part ......................................................................................................... 12
Tenant’s right to remove fixtures and buildings 12

8 Tenant’s right to remove fixtures and buildings ...................................................... 12
Right of first refusal 13

9 Right of first refusal ...................................................................................................... 13
Assignment on death of tenant 13

10 Assignment on death of tenant ................................................................................... 13
PART 2 – RENT REVIEW UNDER FARM BUSINESS TENANCY 15

11 Application of Part 2 .................................................................................................... 15
12 Notice requiring statutory rent review ...................................................................... 15
13 Review date where new tenancy of severed part of reversion .............................. 16
14 Reference to Land Court .............................................................................................. 17
15 Amount of rent .............................................................................................................. 17
16 Interpretation of Part 2 ................................................................................................. 18
Index Agricultural Tenancies Act 2008


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PART 3 – COMPENSATION ON TERMINATION OF FARM

BUSINESS TENANCY 18

Tenant’s entitlement to compensation 18

17 Meaning of ‘tenant’s improvement’ .......................................................................... 18
18 Tenant’s right to compensation for tenant’s improvement .................................... 19
Conditions of eligibility 19

19 Consent of landlord as condition of compensation for tenant’s
improvement ................................................................................................................. 19
20 Conditions in relation to compensation for planning approval ............................ 20
21 Reference to arbitration or Land Court of refusal or failure to give consent
or of condition attached to consent ............................................................................ 20
Amount of compensation 22

22 Amount of compensation for tenant’s improvement not consisting of
planning approval ........................................................................................................ 22
23 Amount of compensation for planning approval .................................................... 23
24 Settlement of claims for compensation ..................................................................... 23
Supplementary provisions with respect to compensation 24

25 Successive tenancies ..................................................................................................... 24
26 Resumption of possession of part of holding ........................................................... 24
27 Compensation where reversionary estate in holding is severed ........................... 26
28 Extent to which compensation recoverable under agreements ............................. 26
29 Interpretation of Part 3 ................................................................................................ 26
PART 4 – MISCELLANEOUS AND SUPPLEMENTAL 27

Resolution of disputes 27

30 Resolution of disputes ................................................................................................. 27
31 Cases where right to refer claim under section 30 does not apply........................ 27
Miscellaneous 28

32 Power of limited owners to give consent etc. ........................................................... 28
33 Estimation of best rent for purposes of Acts and other instruments .................... 28
Supplemental 29

34 Service of notices .......................................................................................................... 29
35 Interpretation ................................................................................................................ 30
36 Consequential amendments ....................................................................................... 31
37 Short title and commencement ................................................................................... 31
SCHEDULE 33

CONSEQUENTIAL AMENDMENTS 33
ENDNOTES 35

TABLE OF LEGISLATION HISTORY 35
TABLE OF RENUMBERED PROVISIONS 35
Agricultural Tenancies Act 2008 Index


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TABLE OF ENDNOTE REFERENCES 35

Agricultural Tenancies Act 2008 Section 1


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c i e
AGRICULTURAL TENANCIES ACT 2008

Received Royal Assent: 21 October 2008
Passed: 21 October 2008
Commenced: 12 November 2008
AN ACT
to make further provision with respect to tenacies which include
agricultural land.
PART 1 – GENERAL PROVISIONS

Farm business tenancies
1 Meaning of ‘farm business tenancy’

[P1995/8/1]
(1) A tenancy is a “farm business tenancy
” for the purposes of this Act if —
(a) it is granted by or pursuant to a written contract;
(b) it meets the business conditions together with either the
agriculture condition or the notice conditions; and
(c) it is not a tenancy which, by virtue of section 2, 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 that land; and
(d) any other relevant circumstances,
the character of the tenancy is primarily or wholly agricultural.
Section 2 Agricultural Tenancies Act 2008


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(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) ‘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) 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 or her predecessor in
title has consented to the breach or the landlord has acquiesced in the
breach.
2 Tenancies which cannot be farm business tenancies

[P1995/8/2]
(1) A tenancy cannot be a farm business tenancy for the purposes of this Act
if —
(a) the tenancy begins before 12th November 2008; or
Agricultural Tenancies Act 2008 Section 3


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(b) it is a tenancy of an agricultural holding beginning on or after that
date with respect to which, by virtue of section 4, the Agricultural
Holdings Act 1969 applies.
(2) In this section ‘agricultural holding’ has the same meaning as in the
Agricultural Holdings Act 1969.
3 Compliance with notice conditions in cases of surrender and re-grant

[P1995/8/3]
(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);
(b) the condition in subsection (2) or the condition in subsection (3) is
met; and
(c) except as respects the matters mentioned in subsections (2) and (3)
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) 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) 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).
(5) In subsection (3), ‘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 1969
4 Agricultural Holding Act 1969 not to apply in relation to new tenancies

expect in special cases

[P1995/8/4, SI06/2805/12]
(1) The Agricultural Holdings Act 1969 (‘the 1969 Act’) shall not apply in
relation to any tenancy beginning on or after 12th November 2008
(including any agreement to which section 2 of that Act would otherwise
apply beginning on or after that date), except as provided in the
following provisions of this section.
Section 4 Agricultural Tenancies Act 2008


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(2) The 1969 Act shall apply in relation to a tenancy of an agricultural
holding which is granted by a written contract of tenancy indicating (in
whatever terms) that the 1969 Act is to apply in relation to the tenancy.
(3) The 1969 Act shall apply in relation to a tenancy of an agricultural
holding which is granted by the Land Court pursuant to section 4(8) of
the 1969 Act.
(4) Subject to subsection (5), the 1969 Act shall apply in relation to a tenancy
of an agricultural holding which is granted —
(a) 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 1969 Act
applied; and
(b) 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.
(5) The 1969 Act shall not apply by virtue of subsection (4) 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
12th November 2008 in relation to which the 1969 Act applied by
virtue of subsection (4);
(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 on 12th November 2008 subject to a
tenancy in relation to which the 1969 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.
(6) The references in subsections (4) and (5) to a substantial part of the land
comprised in the holding mean a substantial part determined by
reference to either area or value.
(7) In this section ‘agricultural holding’ and ‘contract of tenancy’ have the
same meanings as in the 1969 Act.
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Termination of the tenancy
5 Tenancies for more than 5 years to continue from year to year unless

terminated by notice

[P1995/8/5, SI06/2805/13]
(1) A farm business tenancy for a term of more than 5 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 3 years before the term date a written
notice has been given by either party to the other of his or her intention
to terminate the tenancy.
(2) In subsection (1) ‘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 5 of the Conveyancing (Leases and Tenancies)
Act 1954 (apportionment of conditions on severance of reversion), a
notice under subsection (1) shall be taken to be a notice to quit.
(4) This section has effect notwithstanding any agreement to the contrary.
6 Length of notice to quit

[P1995/8/6, SI06/2805/13]
(1) Subject to subsection (2), 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 12 months before the date on which it is to take
effect.
(2) Where, by virtue of section 5(1), a farm business tenancy for a term of
more than 5 years continues or is to continue (as from the term date) as a
tenancy from year to year —
(a) subsection (1)(c) has effect in relation to that tenancy with the
substitution of ‘3 years’ for ‘12 months’; and
(b) a notice to quit which complies with subsection (1) and which is
to take effect on an 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).
(3) Subsection (1) does not apply in relation to a counternotice given by the
tenant by virtue of section 5(2) of the Conveyancing (Leases and Tenancies)
Act 1954 (apportionment of conditions on severance of reversion).
Section 7 Agricultural Tenancies Act 2008


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7 Notice required for exercise of option to terminate tenancy or resume

possession of part

[P1995/8/7, SI06/2805/13]
(1) Where a farm business tenancy is a tenancy for a term of more than 5
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 3 years before the date on which it is to take effect.
(2) Subsection (1) does not apply in relation to a counternotice given by the
tenant by virtue of section 5(2) of the Conveyancing (Leases and Tenancies)
Act 1954 (apportionment of conditions on severance of reversion).
Tenant’s right to remove fixtures and buildings
8 Tenant’s right to remove fixtures and buildings

[P1995/8/8]
(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 or her 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 or
she remains in possession as tenant (whether or not under a new
tenancy), and shall remain his or her property so long as he or she may
remove it by virtue of this subsection.
(2) Subsection (1) 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 18 or otherwise; or
(d) to a fixture or building in respect of which the landlord has given
his or her consent under section 19 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), the
tenant shall not do any avoidable damage to the holding.
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(4) Immediately after removing a fixture or building by virtue of
subsection (1), 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 or her.
(6) Except as provided by subsection (2)(d), 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.
Right of first refusal
9 Right of first refusal

[XXI p.134/8]
(1) Where the landlord under a farm business tenancy proposes to sell the
whole or any part of the land comprised in the tenancy (‘the relevant
land’), he or she shall first give a notice in writing to the tenant —
(a) specifying the relevant land; and
(b) offering to sell the relevant land to the tenant at a price specified
in the notice.
(2) The landlord shall not sell the relevant land except to the tenant within 3
months of the service of a notice under subsection (1).
(3) If the landlord under a farm business tenancy sells the relevant land —
(a) without giving notice in accordance with subsection (1); or
(b) in contravention of subsection (2),
he or she is guilty of an offence and liable —
(i) on summary conviction, to a fine not exceeding £5,000; or
(ii) on conviction on information, to a fine.
Assignment on death of tenant
10 Assignment on death of tenant

[XXI p.134/4(8)]
(1) Where the terms of a farm business tenancy include a restriction on
assignment, on the death of the tenant under a farm business tenancy the
personal representative of the deceased tenant may, notwithstanding the
restriction, but only with the consent in writing of the landlord, assign
the tenancy to the surviving spouse or civil partner or any child or
grandchild of the deceased tenant.1

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(2) The consent of the landlord under subsection (1) shall not be
unreasonably withheld.
(3) The personal representative may, before the end of the period of 2
months beginning with the date of death, give a notice in writing to the
landlord —
(a) giving the name and address of the surviving spouse or civil
partner, child or grandchild of the deceased tenant to whom the
tenancy is to be assigned (‘the assignee’);2

(b) requiring the landlord, before the end of the period of 2 months
beginning with the day on which the notice is given (‘the notice
period’), to give consent in writing to the assignment; and
(c) demanding that, if such consent is not given within the notice
period, the question whether it has been unreasonably withheld
be determined in accordance with this section.
(4) Where the personal representative has given a notice under
subsection (3) but at the end of the notice period —
(a) the landlord has not consented in writing to the assignment; and
(b) no arbitrator has been appointed under an agreement made
before or within the notice period,
the tenant or the landlord may apply to the Land Court for the
determination of the question.
(5) The arbitrator or the Land Court shall not determine that the landlord’s
consent has been unreasonably withheld unless it is satisfied that that the
assignee is capable of —
(a) farming the land; and
(b) carrying on any other commercial activities which, immediately
before the death of the deceased tenant, were carried on on the
land in accordance with the terms of the tenancy,
without detriment to the land.
(6) Subject to subsection (5), if the arbitrator or the Land Court considers,
having regard to the terms of the tenancy and any other relevant
circumstances (including the circumstances of the tenant and the
landlord), that the landlord’s consent has been unreasonably withheld, it
shall give its consent to the assignment to the assignee, and that consent
shall have effect for the purposes of this Act and the terms of the farm
business tenancy as if it were the consent of the landlord.
(7) In this section —
‘assignment’, in relation to a tenancy, includes an assent to the vesting of the
tenancy;
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‘restriction on assignment’ means a covenant, condition, agreement or other
term contained or implied in a tenancy prohibiting or restricting the
tenant from —
(a) assigning the tenancy; or
(b) parting with possession of the whole or part of the land
comprised in the tenancy.
PART 2 – RENT REVIEW UNDER FARM BUSINESS TENANCY

11 Application of Part 2

[P1995/8/9, SI06/2805/14]
This Part applies in relation to a farm business tenancy (notwithstanding any
agreement to the contrary) unless the tenancy is created by an instrument
which —
(a) expressly states that the rent is not to be reviewed during the
tenancy; or
(b) provides that the rent is to be varied, at a specified time or times
during the tenancy —
(i) by or to a specified amount; or
(ii) in accordance with a specified formula which does not
preclude a reduction and which does not require or permit
the exercise by any person of any judgment or discretion in
relation to the determination of the rent of the holding,
but otherwise is to remain fixed; or
(c) does not contain any provision which precludes a reduction in the
rent during the tenancy, and —
(i) expressly states that this Part does not apply; or
(ii) makes provision for the reference of rent reviews to an
independent expert whose decision is final.
12 Notice requiring statutory rent review

[P1995/8/10]
(1) The landlord or tenant under a farm business tenancy in relation to
which this Part applies may by notice in writing given to the other (a
‘statutory review notice’) require that the rent to be payable in respect of
the holding as from the review date shall be determined in accordance
with this Act.
(2) In this Part “the review date
”, in relation to a statutory review notice,
means a date which —
(a) is specified in the notice; and
(b) complies with subsections (3) to (6).
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(3) The review date must be at least 12 months but less than 24 months after
the day on which the statutory review notice is given.
(4) If the parties have agreed in writing that the rent is to be, or may be,
varied as from a specified date or dates, or at specified intervals, the
review date must be a date as from which the rent could be varied under
the agreement.
(5) If the parties have agreed in writing that the review date for the purposes
of this Part is to be a specified date or dates, the review date must be that
date or one of those dates.
(6) If the parties have not agreed as mentioned in subsection (4) or (5), the
review date —
(a) must be an anniversary of the beginning of the tenancy or, where
the landlord and the tenant have agreed in writing that the review
date for the purposes of this Act is to be some other day of the
year, that day of the year; and
(b) must not fall before the end of the period of 3 years beginning
with the latest of any of the following dates —
(i) the beginning of the tenancy;
(ii) any date as from which there took effect a previous
determination by an arbitrator or the Land Court as to the
amount of the rent,;
(iii) any date as from which there took effect a previous
determination as to the amount of the rent made,
otherwise than as arbitrator, by a person appointed under
an agreement between the landlord and the tenant; and
(iv) any date as from which there took effect a previous
agreement in writing between the landlord and the tenant,
entered into since the grant of the tenancy, as to the
amount of the rent.
13 Review date where new tenancy of severed part of reversion

[P1995/8/11]
(1) This section applies in any case where a farm business tenancy (‘the new
tenancy’) arises between —
(a) a person who immediately before the date of the beginning of the
tenancy was entitled to a severed part of the reversionary estate in
the land comprised in a farm business tenancy (“the original
tenancy”) in which the land to which the new tenancy relates was
then comprised; and
(b) the person who immediately before that date was the tenant
under the original tenancy, and the rent payable under the new
tenancy at its beginning represents merely the appropriate
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portion of the rent payable under the original tenancy
immediately before the beginning of the new tenancy.
(2) In any case where this section applies —
(a) references to the beginning of the tenancy in subsection (6) of
section 12 shall be taken to be references to the beginning of the
original tenancy; and
(b) references to rent in that subsection shall be taken to be references
to the rent payable under the original tenancy,
until the first occasion following the beginning of the new tenancy on
which any such determination or agreement with respect to the rent of
the new holding as is mentioned in that subsection takes effect.
14 Reference to Land Court

[P1995/8/12]
Where a statutory review notice has been given in relation to a farm business
tenancy, but —
(a) no arbitrator has been appointed under an agreement made since
the notice was given; and
(b) no person has been appointed under such an agreement to
determine the question of the rent (otherwise than as arbitrator)
on a basis agreed by the parties,
either party may, at any time during the period of 6 months ending with the
review date, apply to the Land Court for the determination of the rent.
15 Amount of rent

[P1995/8/13, SI06/2805/15]
(1) On any reference or application made in pursuance of a statutory review
notice, the arbitrator or the Land Court, as the case may be, shall
determine the rent properly payable in respect of the holding at the
review date and accordingly shall, with effect from that date, increase or
reduce the rent previously payable or direct that it shall continue
unchanged.
(2) For the purposes of subsection (1), the rent properly payable in respect of
a holding is the rent at which the holding might reasonably be expected
to be let on the open market by a willing landlord to a willing tenant,
taking into account (subject to subsections (3) and (4)) all relevant factors,
including (in every case) the terms of the tenancy (including those which
are relevant for the purposes of section 12(4) to (6), but not those which
(apart from this section) preclude a reduction in the rent during the
tenancy).
Section 16 Agricultural Tenancies Act 2008


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(3) The arbitrator or the Land Court shall disregard any increase in the
rental value of the holding which is due to tenant’s improvements
other than —
(a) any tenant’s improvement provided under an obligation which
was imposed on the tenant by the terms of his or her tenancy or
any previous tenancy and which arose on or before the beginning
of the tenancy in question;
(b) any tenant’s improvement to the extent that any allowance or
benefit has been made or given by the landlord in consideration of
its provision; and
(c) any tenant’s improvement to the extent that the tenant has
received any compensation from the landlord in respect of it.
(4) The arbitrator or the Land Court —
(a) shall disregard any effect on the rent of the fact that the tenant
who is a party to the arbitration or application is in occupation of
the holding; and
(b) shall not fix the rent at a lower amount by reason of any
dilapidation or deterioration of, or damage to, buildings or land
caused or permitted by the tenant.
(5) In this section ‘tenant’s improvement’, and references to the provision of
such an improvement, have the meaning given by section 17.
16 Interpretation of Part 2

[P1995/8/14]
In this Part —
“the review date
”, in relation to a statutory review notice, has the meaning
given by section 12(2);
“statutory review notice
” has the meaning given by section 12(1).
PART 3 – COMPENSATION ON TERMINATION OF FARM

BUSINESS TENANCY

Tenant’s entitlement to compensation
17 Meaning of ‘tenant’s improvement’

[P1995/8/15]
For the purposes of this Part a ‘tenant’s improvement’, in relation to any farm
business tenancy, means —
(a) any physical improvement which is made on the holding by the
tenant by his or her own effort or wholly or partly at his or her
own expense; or
Agricultural Tenancies Act 2008 Section 18


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(b) any intangible advantage which —
(i) is obtained for the holding by the tenant by his or her own
effort or wholly or partly at his or her own expense; and
(ii) becomes attached to the holding,
and references to the provision of a tenant’s improvement are references to the
making by the tenant of any physical improvement falling within paragraph (a)
or the obtaining by the tenant of any intangible advantage falling within
paragraph (b).
18 Tenant’s right to compensation for tenant’s improvement

[P1995/8/16]
(1) The tenant under a farm business tenancy shall, subject to the provisions
of this Part, be entitled on the termination of the tenancy, on quitting the
holding, to obtain from his or her landlord compensation in respect of
any tenant’s improvement.
(2) A tenant shall not be entitled to compensation under this section in
respect of —
(a) any physical improvement which is removed from the holding; or
(b) any intangible advantage which does not remain attached to the
holding.
Conditions of eligibility
19 Consent of landlord as condition of compensation for tenant’s

improvement

[P1995/8/17]
(1) A tenant shall not be entitled to compensation under section 18 in respect
of any tenant’s improvement unless the landlord has given his or her
consent in writing to the provision of the tenant’s improvement.
(2) Any such consent may be given in the instrument creating the tenancy or
elsewhere.
(3) Any such consent may be given either unconditionally or on condition
that the tenant agrees to a specified variation in the terms of the tenancy.
(4) The variation referred to in subsection (3) must be related to the tenant’s
improvement in question.
(5) This section does not apply in any case where the tenant’s improvement
consists of planning approval.
Section 20 Agricultural Tenancies Act 2008


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20 Conditions in relation to compensation for planning approval

[P1995/8/18]
(1) A tenant shall not be entitled to compensation under section 18 in respect
of a tenant’s improvement which consists of planning approval unless —
(a) the landlord has given his or her consent in writing to the making
of the application for planning approval;
(b) that consent is expressed to be given for the purpose —
(i) of enabling a specified physical improvement falling
within paragraph (a) of section 17 lawfully to be provided
by the tenant; or
(ii) of enabling the tenant lawfully to effect a specified change
of use; and
(c) on the termination of the tenancy, the specified physical
improvement has not been completed or the specified change of
use has not been effected.
(2) Any such consent may be given either unconditionally or on condition
that the tenant agrees to a specified variation in the terms of the tenancy.
(3) The variation referred to in subsection (2) must be related to the physical
improvement or change of use in question.
21 Reference to arbitration or Land Court of refusal or failure to give

consent or of condition attached to consent

[P1995/8/19]
(1) Where, in relation to any tenant’s improvement, the tenant under a farm
business tenancy is aggrieved by —
(a) the refusal of his or her landlord to give consent under
section 19(1);
(b) the failure of the landlord to give such consent within 2 months of
a written request by the tenant for such consent; or
(c) any variation in the terms of the tenancy required by the landlord
as a condition of giving such consent,
the tenant may by notice in writing given to the landlord demand that
the question shall be determined in accordance with this section; but this
subsection has effect subject to subsections (2) and (3).
(2) No notice under subsection (1) may be given in relation to any tenant’s
improvement which the tenant has already provided or begun to
provide, unless that improvement is a routine improvement.
(3) No notice under subsection (1) may be given —
(a) in a case falling within paragraph (a) or (c) of that subsection,
after the end of the period of 2 months beginning with the day on
Agricultural Tenancies Act 2008 Section 21


c AT 15 of 2008 Page 21

which notice of the refusal or variation referred to in that
paragraph was given to the tenant; or
(b) in a case falling within paragraph (b) of that subsection, after the
end of the period of 4 months beginning with the day on which
the written request referred to in that paragraph was given to the
landlord.
(4) Where the tenant has given notice under subsection (1) but no arbitrator
has been appointed under an agreement made since the notice was
given, the tenant or the landlord may apply to the Land Court for the
determination of the question.
(5) The arbitrator or the Land Court shall consider whether, having regard
to the terms of the tenancy and any other relevant circumstances
(including the circumstances of the tenant and the landlord), it is
reasonable for the tenant to provide the tenant’s improvement.
(6) Subject to subsection (9), the arbitrator or the Land Court may
unconditionally approve the provision of the tenant’s improvement or
may withhold his, her or its approval, but may not give approval subject
to any condition or vary any condition required by the landlord under
section 19(3).
(7) If the arbitrator or the Land Court gives his, her or its approval, that
approval shall have effect for the purposes of this Part and for the
purposes of the terms of the farm business tenancy as if it were the
consent of the landlord.
(8) In a case falling within subsection (1)(c), the withholding by the
arbitrator or the Land Court of his, her or its approval shall not affect the
validity of the landlord’s consent or of the condition subject to which it
was given.
(9) Where, at any time after giving a notice under subsection (1) in relation
to any tenant’s improvement which is not a routine improvement, the
tenant begins to provide the improvement —
(a) no application may be made under subsection (4) after that time;
(b) where such an application has been made but the Land Court has
not been constituted before that time, the application shall be
ineffective; and
(c) no determination may be made by virtue of subsection (6) after
that time except as to the costs of the application in a case where
the Land Court was constituted before that time.
(10) For the purposes of this section —
‘fixed equipment’ includes any building or structure affixed to land and any
works constructed on, in, over or under land, and also includes anything
grown on land for a purpose other than use after severance from the
land, consumption of the thing grown or its produce, or amenity;
Section 22 Agricultural Tenancies Act 2008


Page 22 AT 15 of 2008 c

‘routine improvement’, in relation to a farm business tenancy, means any
tenant’s improvement which —
(a) is a physical improvement made in the normal course of farming
the holding or any part of the holding; and
(b) does not consist of fixed equipment or an improvement to fixed
equipment,
but does not include any improvement whose provision is prohibited by
the terms of the tenancy.
Amount of compensation
22 Amount of compensation for tenant’s improvement not consisting of

planning approval

[P1995/8/20, SI06/2805/16]
(1) Subject to subsection (5), the amount of compensation payable to the
tenant under section 18 in respect of any tenant’s improvement shall be
an amount equal to the increase attributable to the improvement in the
value of the holding at the termination of the tenancy as land comprised
in a tenancy.
(2) Where the landlord and the tenant have entered into an agreement in
writing whereby any benefit is given or allowed to the tenant in
consideration of the provision of a tenant’s improvement, the amount of
compensation otherwise payable in respect of that improvement shall be
reduced by the proportion which the value of the benefit bears to the
amount of the total cost of providing the improvement.
(3) Where a grant has been or will be made to the tenant out of public
money in respect of a tenant’s improvement, the amount of
compensation otherwise payable in respect of that improvement shall be
reduced by the proportion which the amount of the grant bears to the
amount of the total cost of providing the improvement.
(4) Where a physical improvement which has been completed or a change of
use which has been effected is authorised by any planning approval
granted on an application made by the tenant, section 20 does not
prevent any value attributable to the fact that the physical improvement
or change of use is so authorised from being taken into account under
this section in determining the amount of compensation payable in
respect of the physical improvement or in respect of any intangible
advantage obtained as a result of the change of use.
(5) Where the landlord and the tenant have agreed in writing to limit the
amount of compensation payable under section 18 in respect of any
tenant’s improvement, that amount shall be the lesser of —
Agricultural Tenancies Act 2008 Section 23


c AT 15 of 2008 Page 23

(a) the amount determined in accordance with subsections(1) to (4);
and
(b) the compensation limit.
(6) In subsection (5), ‘the compensation limit’ means —
(a) an amount agreed by the parties in writing; or
(b) where the parties are unable to agree on an amount, an amount
equal to the cost to the tenant of making the improvement.
(7) This section does not apply where the tenant’s improvement consists of
planning approval.
23 Amount of compensation for planning approval

[P1995/8/21]
(1) The amount of compensation payable to the tenant under section 18 in
respect of a tenant’s improvement which consists of planning approval
shall be an amount equal to the increase attributable to the fact that the
relevant development is authorised by the planning approval in the
value of the holding at the termination of the tenancy as land comprised
in a tenancy.
(2) In subsection (1), ‘the relevant development’ means the physical
improvement or change of use specified in the landlord’s consent under
section 20 in accordance with subsection (1)(b) of that section.
(3) Where the landlord and the tenant have entered into an agreement in
writing whereby any benefit is given or allowed to the tenant in
consideration of the obtaining of planning approval by the tenant, the
amount of compensation otherwise payable in respect of that approval
shall be reduced by the proportion which the value of the benefit bears to
the amount of the total cost of obtaining the approval.
24 Settlement of claims for compensation

[P1995/8/22]
(1) Any claim by the tenant under a farm business tenancy for compensation
under section 18 shall, subject to the provisions of this section, be
determined in accordance with this section.
(2) No such claim for compensation shall be enforceable unless before the
end of the period of 2 months beginning with the date of the termination
of the tenancy the tenant has given notice in writing to the landlord of his
or her intention to make the claim and of the nature of the claim.
(3) Where —
(a) the landlord and the tenant have not settled the claim by
agreement in writing; and
Section 25 Agricultural Tenancies Act 2008


Page 24 AT 15 of 2008 c

(b) no arbitrator has been appointed under an agreement made since
the notice under subsection (2) was given,
either party may, after the end of the period of 4 months beginning with
the date of the termination of the tenancy, apply to the Land Court for
the determination of the claim.
(4) Where a tenant lawfully remains in occupation of part of the holding
after the termination of a farm business tenancy, references in
subsections (2) and (3) to the termination of the tenancy shall, in the case
of a claim relating to that part of the holding, be construed as references
to the termination of the occupation.
Supplementary provisions with respect to compensation
25 Successive tenancies

[P1995/8/23]
(1) Where the tenant under a farm business tenancy has remained in the
holding during 2 or more such tenancies, he or she shall not be deprived
of his or her right to compensation under section 18 by reason only that
any tenant’s improvement was provided during a tenancy other than the
one at the termination of which he or she quits the holding.
(2) The landlord and tenant under a farm business tenancy may agree that
the tenant is to be entitled to compensation under section 18 on the
termination of the tenancy even though at that termination the tenant
remains in the holding under a new tenancy.
(3) Where the landlord and the tenant have agreed as mentioned in
subsection (2) in relation to any tenancy (“the earlier tenancy”), the
tenant shall not be entitled to compensation at the end of any subsequent
tenancy in respect of any tenant’s improvement provided during the
earlier tenancy in relation to the land comprised in the earlier tenancy.
26 Resumption of possession of part of holding

[P1995/8/24, SI06/2805/17]
(1) Where —
(a) the landlord under a farm business tenancy resumes possession of
part of the holding in pursuance of any provision of the tenancy;
or
(b) a person entitled to a severed part of the reversionary estate in a
holding held under a farm business tenancy resumes possession
of part of the holding by virtue of a notice to quit that part given
to the tenant by virtue of section 5 of the Conveyancing (Leases and
Tenancies) Act 1954,
Agricultural Tenancies Act 2008 Section 26


c AT 15 of 2008 Page 25

the provisions of this Part shall, subject to subsections (2) and (3), apply
to that part of the holding (‘the relevant part’) as if it were a separate
holding which the tenant had quitted in consequence of a notice to quit
and, in a case falling within paragraph (b), as if the person resuming
possession were the landlord of that separate holding.
(2) The amount of compensation payable to the tenant under section 18 in
respect of any tenant’s improvement provided for the relevant part by
the tenant and not consisting of planning approval shall, subject to
section 22(2) to (5), be an amount equal to the increase attributable to the
tenant’s improvement in the value of the original holding on the
termination date as land comprised in a tenancy.
(3) The amount of compensation payable to the tenant under section 18 in
respect of any tenant’s improvement which consists of planning
approval relating to the relevant part shall, subject to section 23(3), be an
amount equal to the increase attributable to the fact that the relevant
development is authorised by the planning approval in the value of the
original holding on the termination date as land comprised in a tenancy.
(4) In a case falling within paragraph (a) or (b) of subsection (1), sections 22
and 23 shall apply (subject to subsection (5)) on the termination of the
tenancy, in relation to the land then comprised in the tenancy, as if the
reference in subsection (1) of each of those sections to the holding were a
reference to the original holding.
(5) Where —
(a) the landlord and the tenant have agreed in writing to limit the
amount of compensation payable under section 18 in respect of
any tenant’s improvement not consisting of planning approval;
(b) that improvement is provided for both the relevant part and the
land comprised in the tenancy after the termination date;
(c) the case falls within paragraph (a) or (b) of subsection (1);
(d) the tenant has already received compensation in respect of the
improvement, determined in accordance with subsection (2); and
(e) further compensation in respect of the improvement is payable
under section 18 on termination of the tenancy,
the compensation limit referred to in section 22(5) shall, for the purposes
of determining that further compensation, be reduced by an amount
equal to the amount of compensation already received by the tenant in
respect of the improvement.
(6) In subsections (2) to (5) —
‘the original holding’ means the land comprised in the farm business tenancy —
(a) on the date when the landlord gave consent under section 19 or 20
in relation to the tenant’s improvement; or
Section 27 Agricultural Tenancies Act 2008


Page 26 AT 15 of 2008 c

(b) where approval in relation to the tenant’s improvement was given
by an arbitrator or the Land Court, on the date on which that
approval was given,
‘the relevant development’, in relation to any tenant’s improvement which
consists of planning approval, has the meaning given by section 23(2),
and
‘the termination date’ means the date on which possession of the relevant part
was resumed.
27 Compensation where reversionary estate in holding is severed

[P1995/8/25]
(1) Where the reversionary estate in the holding comprised in a farm
business tenancy is for the time being vested in more than one person in
several parts, the tenant shall be entitled, on quitting the entire holding,
to require that any compensation payable to him or her under section 18
shall be determined as if the reversionary estate were not so severed.
(2) Where subsection (1) applies, the arbitrator or the Land Court, as the case
may be, shall, where necessary, apportion the amount awarded between
the persons who for the purposes of this Part together constitute the
landlord of the holding, and any additional costs of the award caused by
the apportionment shall be directed by the arbitrator or Court to be paid
by those persons in such proportions as he, she or it shall determine.
28 Extent to which compensation recoverable under agreements

[P1995/8/26]
(1) In any case for which apart from this section the provisions of this Part
provide for compensation, a tenant shall be entitled to compensation in
accordance with those provisions and not otherwise, and shall be so
entitled notwithstanding any agreement to the contrary.
(2) Nothing in the provisions of this Part, apart from this section, shall be
construed as disentitling a tenant to compensation in any case for which
those provisions do not provide for compensation.
29 Interpretation of Part 3

[P1995/8/13]
In this Part —
“planning approval
” has the meaning given by section 45(1) of the Town and
Country Planning Act 1999;
“tenant’s improvement
”, and references to the provision of such an
improvement, have the meaning given by section 17.
Agricultural Tenancies Act 2008 Section 30


c AT 15 of 2008 Page 27

PART 4 – MISCELLANEOUS AND SUPPLEMENTAL

Resolution of disputes
30 Resolution of disputes

[P1995/8/28]
(1) Subject to subsections (4) and (5) and to section 31, any dispute between
the landlord and the tenant under a farm business tenancy, being a
dispute concerning their rights and obligations under this Act, under the
terms of the tenancy or under any custom, shall be determined in
accordance with this section.
(2) Where such a dispute has arisen, the landlord or the tenant may give
notice in writing to the other specifying the dispute and stating that,
unless before the end of the period of 2 months beginning with the day
on which the notice is given the parties have appointed an arbitrator by
agreement, he or she proposes to apply to the Land Court for the
determination of the dispute.
(3) Where a notice has been given under subsection (2), but no arbitrator has
been appointed by agreement, either party may, after the end of the
period of 2 months referred to in that subsection, apply to the Land
Court for the determination of the dispute.
(4) Subsection (1) does not affect the jurisdiction of the High Court, except to
the extent provided by section 4(1) of the Arbitration Act 1976 (staying of
court proceedings where there is submission to arbitration), as applied to
statutory arbitrations by section 31 of that Act.
(5) Subsections (1) to (3) do not apply in relation to —
(a) any case falling within section 10(1);
(b) the determination of rent in pursuance of a statutory review
notice (as defined in section 12(1));
(c) any case falling within section 21(1);
(d) any claim for compensation under Part 3; or
(e) any dispute relating to rent review, in any case where Part 2 is
excluded by virtue of section 11(c)(ii).
31 Cases where right to refer claim under section 30 does not apply

[P1995/8/29]
(1) Section 30 does not apply in relation to any dispute if —
(a) the tenancy is created by an instrument which includes provision
for disputes to be resolved by any person other than —
(i) the landlord or the tenant; or
Section 32 Agricultural Tenancies Act 2008


Page 28 AT 15 of 2008 c

(ii) a third party appointed by either of them without the
consent or concurrence of the other; and
(b) either of the following has occurred —
(i) the landlord and the tenant have jointly referred the
dispute to the third party under the provision; or
(ii) the landlord or the tenant has referred the dispute to the
third party under the provision and notified the other in
writing of the making of the reference, the period of 4
weeks beginning with the date on which the other was so
notified has expired and the other has not given a notice
under section 30(2) in relation to the dispute before the end
of that period.
(2) For the purposes of subsection (1), a term of the tenancy does not
provide for disputes to be ‘resolved’ by any person unless that person
(whether or not acting as arbitrator) is enabled under the terms of the
tenancy to give a decision which is binding in law on both parties.
Miscellaneous
32 Power of limited owners to give consent etc.

[P1995/8/32]
The landlord under a farm business tenancy, whatever his or her estate or
interest in the holding, may, for the purposes of this Act, give any consent,
make any agreement or do or have done to him or her any other act which he or
she might give, make, do or have done to him or her if the landlord were owner
in customary fee simple or, if his or her interest is an interest in a leasehold,
were absolutely entitled to that leasehold.
33 Estimation of best rent for purposes of Acts and other instruments

[P1995/8/34]
(1) In estimating the best rent or reservation in the nature of rent of land
comprised in a farm business tenancy for the purposes of a relevant
instrument, it shall not be necessary to take into account against the
tenant any increase in the value of that land arising from any tenant’s
improvements.
(2) In subsection (1) —
‘a relevant instrument’ means any enactment, deed or other instrument which
authorises a lease to be made on the condition that the best rent or
reservation in the nature of rent is reserved;
‘tenant’s improvement’ has the meaning given by section 17.
Agricultural Tenancies Act 2008 Section 34


c AT 15 of 2008 Page 29

Supplemental
34 Service of notices

[P1995/8/36]
(1) This section applies to any notice or other document required or
authorised to be given under this Act.
(2) A notice or other document to which this section applies is duly given to
a person if —
(a) it is delivered to him or her;
(b) it is left at his or her proper address; or
(c) it is given to him or her in a manner authorised by a written
agreement made, at any time before the giving of the notice,
between him or her and the person giving the notice.
(3) A notice or other document to which this section applies is not duly
given to a person if its text is transmitted to him or her by facsimile or
other electronic means otherwise than by virtue of subsection (2)(c).
(4) Where a notice or other document to which this section applies is to be
given to a body corporate, the notice or document is duly given if it is
given to the secretary or clerk of that body.
(5) Where —
(a) a notice or other document to which this section applies is to be
given to a landlord under a farm business tenancy and an agent or
servant of his or hers is responsible for the control of the
management of the holding; or
(b) such a document is to be given to a tenant under a farm business
tenancy and an agent or servant of his or hers is responsible for
the carrying on of a business on the holding,
the notice or document is duly given if it is given to that agent or servant.
(6) For the purposes of this section, the proper address of any person to
whom a notice or other document to which this section applies is to be
given is —
(a) in the case of the secretary or clerk of a body corporate, the
registered or principal office of that body; and
(b) in any other case, the last known address of the person in
question.
(7) Unless or until the tenant under a farm business tenancy has received —
(a) notice that the person who before that time was entitled to receive
the rents and profits of the holding (‘the original landlord’) has
ceased to be so entitled; and
Section 35 Agricultural Tenancies Act 2008


Page 30 AT 15 of 2008 c

(b) notice of the name and address of the person who has become
entitled to receive the rents and profits,
any notice or other document given to the original landlord by the tenant
shall be deemed for the purposes of this Act to have been given to the
landlord under the tenancy.
35 Interpretation

[P1995/8/38]
(1) In this Act —
“agriculture
” includes horticulture, fruit growing, seed growing, dairy farming
and livestock breeding and keeping, the use of land as grazing land,
meadow land, osier land, market gardens and nursery grounds, and the
use of land for woodlands where that use is ancillary to the farming of
land for other agricultural purposes, and “agricultural
” shall be
construed accordingly;
“building
” includes any part of a building;
“fixed term tenancy
” means any tenancy other than a periodic tenancy;
“holding
”, in relation to a farm business tenancy, means the aggregate of the
land comprised in the tenancy;
“the Land Court
” means the Land Court established under the Agricultural
Holdings Act 1969;
“landlord
” includes any person from time to time deriving title from the
original landlord;
“livestock
” includes any creature kept for the production of food, wool, skins or
fur or for the purpose of its use in the farming of land;
“tenancy
” means any tenancy other than a tenancy at will, and includes a sub-
tenancy and an agreement for a tenancy or sub-tenancy;
“tenant
” includes a sub-tenant and any person deriving title from the original
tenant or sub-tenant;
“termination
”, in relation to a tenancy, means the cesser of the tenancy by
reason of effluxion of time or from any other cause.
(2) References in this Act to the farming of land include references to the
carrying on in relation to land of any agricultural activity.
(3) A tenancy granted pursuant to a contract shall be taken for the purposes
of this Act to have been granted when the contract was entered into.
(4) For the purposes of this Act a tenancy begins on the day on which, under
the terms of the tenancy, the tenant is entitled to possession under that
tenancy; and references in this Act to the beginning of the tenancy are
references to that day.
Agricultural Tenancies Act 2008 Section 36


c AT 15 of 2008 Page 31

(5) The designations of landlord and tenant shall continue to apply until the
conclusion of any proceedings taken under this Act in respect of
compensation.
36 Consequential amendments

The Schedule (which contains consequential amendments) shall have effect.
37 Short title and commencement

(1) This Act may be cited as the Agricultural Tenancies Act 2008.
(2) This Act shall come into operation on 12th November 2008.
Agricultural Tenancies Act 2008 Schedule



c AT 15 of 2008 Page 33

SCHEDULE

CONSEQUENTIAL AMENDMENTS

Section 36
[Sch 1 amends the following Acts —
Agricultural Marketing (No. 2) Act 1948 q.v.
Landlord and Tenant Act 1954 q.v.
Tenancies (Implied Terms) Act 1954 q.v.
Conveyancing (Leases and Tenancies) Act 1954 q.v.
Agricultural Holdings Act 1969 q.v.
Tenancy of Business Premises Act 1971 q.v.
Agriculture (Safety, Health and Welfare Provisions) Act 1974 q.v.
Property Service Charges Act 1989 q.v.]
Agricultural Tenancies Act 2008 Endnotes


c AT 15 of 2008 Page 35

ENDNOTES

Table of Legislation History

Legislation Year and No Commencement






Table of Renumbered Provisions

Original Current






Table of Endnote References

1
Subs (1) amended by Civil Partnership Act 2011 Sch 14. 2
Para (a) amended by Civil Partnership Act 2011 Sch 14.