Section 177 | Scottish agricultural leases.
From legislation.gov.uk
(1)Where any part of the value of a person’s estate immediately before his death is attributable to the interest of a tenant in an unexpired portion of a lease for a fixed term of agricultural property in Scotland then, subject to subsection (3) below, there shall be left out of account in determining that value any value associated with any prospect of renewal of the lease by —F1
(a)tacit relocation (or any provision in the lease having the same effect as tacit relocation),F1
(b)continuation by virtue of section 4, 8(6) or 8E(1) of the Agricultural Holdings (Scotland) Act 2003, orF1
(c)continuation by virtue of a specified enactment.F1
(2)Where any part of the value of a person’s estate immediately before his death is attributable to the interest of a tenant of agricultural property in Scotland, being an interest which is—
(a)held by virtue of—F2
(i)tacit relocation (or any provision in the lease having the same effect as tacit relocation),F2
(ii)continuation by virtue of section 4, 8(6) or 8E(1) of the Agricultural Holdings (Scotland) Act 2003, orF2
(iii)continuation by virtue of a specified enactment, andF2
(b)acquired on the death by a new tenant,
then, subject to subsection (3) below, the value of the interest shall be left out of account in determining the value of that estate.
(3)Subsections (1) and (2) above shall not apply unless the deceased had been tenant of the property in question continuously for a period of at least two years immediately preceding his death or had become tenant by succession.
(4)The value to be left out of account by virtue of subsection (2) above shall not include the value of any rights to compensation in respect of tenant’s improvements.
(5)The Treasury may by regulations make provision about relevant interests, corresponding to the provision made by this section in relation to the interest of a tenant in a lease of agricultural property in Scotland.F3
(6)For the purposes of subsection (5), a “relevant interest” is the interest of a tenant in a specified type of lease or tenancy of agricultural property in Scotland forming part of the value of a person’s estate immediately before that person’s death.F3
(7)Regulations under subsection (5) must specify the value which is to be left out of account for the purposes of determining the value of a person’s estate or, as the case may be, part of a person’s estate.F3
(8)Regulations under this section are to be made by statutory instrument.F3
(9)Regulations under this section may make such amendments or repeals of this section as appear to the Treasury to be expedient in consequence of provision made by virtue of subsections (1)(c), (2)(a)(iii) or (5).F3
(10)Regulations under subsections (1)(c), (2)(a)(iii) or (5) may have effect in relation to deaths occurring before the regulations are made.F3
(11)A statutory instrument containing regulations made under this section is subject to annulment in pursuance of a resolution of the House of Commons.F3
(12)In this section—F3
“agricultural property” has the same meaning as in Chapter 2 of Part 5,
“enactment” includes an enactment contained in or made under an Act of the Scottish Parliament,
“specified” means specified by regulations made by the Treasury.