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You are here: BAILII >> Databases >> The Law Commission >> TOWARDS A COMPULSORY PURCHASE CODE: (1) COMPENSATION (A Consultative Report) [2002] EWLC 165(APPENDIX 3) (24 June 2002)
URL: http://www.bailii.org/ew/other/EWLC/2002/165(APPENDIX_3).html
Cite as: [2002] EWLC 165(APPENDIX 3)

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appendix 3
selected extracts from ENGLiSH statutes relating to compensation

Land Compensation Act 1961

5 Rules for assessing compensation

Compensation in respect of any compulsory acquisition shall be assessed in accordance with the following rules:

(1) No allowance shall be made on account of the acquisition being compulsory:

(2)The value of land shall, subject as hereinafter provided, be taken to be the amount which the land if sold in the open market by a willing seller might be expected to realise:

(3) The special suitability or adaptability of the land for any purpose shall not be taken into account if that purpose is a purpose to which it could be applied only in pursuance of statutory powers, or for which there is no market apart from . . .[1] the requirements of any authority possessing compulsory purchase powers: [2]

(4) Where the value of the land is increased by reason of the use thereof or of any premises thereon in a manner which could be restrained by any court, or is contrary to law, or is detrimental to the health of the occupants of the premises or to the public health, the amount of that increase shall not be taken into account:

(5) Where land is, and but for the compulsory acquisition would continue to be, devoted to a purpose of such a nature that there is no general demand or market for land for that purpose, the compensation may, if the Lands Tribunal is satisfied that reinstatement in some other place is bona fide intended, be assessed on the basis of the reasonable cost of equivalent reinstatement:

(6) The provisions of rule (2) shall not affect the assessment of compensation for disturbance or any other matter not directly based on the value of land:

and the following provisions of this Part of this Act shall have effect with respect to the assessment.

6 Disregard of actual or prospective development in certain cases

(1) Subject to section eight of this Act,[3] no account shall be taken of any increase or diminution in the value of the relevant interest which, in the circumstances described in any of the paragraphs in the first column of Part I of the First Schedule to this Act, is attributable to the carrying out or the prospect of so much of the development mentioned in relation thereto in the second column of that Part as would not have been likely to be carried out if-

(a) (where the acquisition is for purposes involving development of any of the land authorised to be acquired) the acquiring authority had not acquired and did not propose to acquire any of the land; and

(b) (where the circumstances are those described in one or more of paragraphs 2 to4B  in the said first column) the area or areas referred to in that paragraph or those paragraphs had not been defined or designated as therein mentioned.

(2) The provisions of Part II of the First Schedule to this Act shall have effect with regard to paragraph 3 and so far as applicable paragraph 3A of Part I of that Schedule and the provisions of Part III of that Schedule shall have effect with regard to paragraph 4A. 

(3) In this section and in the First Schedule to this Act-"the land authorised to be acquired"-

(a) in relation to a compulsory acquisition authorised by a compulsory purchase order or a special enactment, means the aggregate of the land comprised in that authorisation, and

(b) in relation to a compulsory acquisition not so authorised but effected under powers exercisable by virtue of any enactment for defence purposes, means the aggregate of the land comprised in the notice to treat and of any land contiguous or adjacent thereto which is comprised in any other notice to treat served under the like powers not more than one month before and not more than one month after the date of service of that notice;

"defence purposes" has the same meaning as in the Land Powers (Defence) Act 1958;

and any reference to development of any land shall be construed as including a reference to the clearing of that land.

7 Effect of certain actual or prospective development of adjacent land in same ownership

(1) Subject to section eight of this Act, where, on the date of service of the notice to treat, the person entitled to the relevant interest is also entitled in the same capacity to an interest in other land contiguous or adjacent to the relevant land, there shall be deducted from the amount of the compensation which would be payable apart from this section the amount (if any) of such an increase in the value of the interest in that other land as is mentioned in subsection (2) of this section.

(2) The said increase is such as, in the circumstances described in any of the paragraphs in the first column of Part I of the First Schedule to this Act, is attributable to the carrying out or the prospect of so much of the relevant development as would not have been likely to be carried out if the conditions mentioned in paragraphs (a) and (b) of subsection (1) of section six of this Act had been satisfied; and the relevant development for the purposes of this subsection is, in relation to the circumstances described in any of the said paragraphs, that mentioned in relation thereto in the second column of the said Part I, but modified, as respects the prospect of any development, by the omission of the words "other than the relevant land", wherever they occur.

8 Subsequent acquisition of adjacent land and acquisition governed by enactment corresponding to s 7

[Not reproduced]

9 Disregard of depreciation due to prospect of acquisition by authority possessing compulsory purchase powers

No account shall be taken of any depreciation of the value of the relevant interest which is attributable to the fact that (whether by way of . . . allocation of other particulars contained in the current development plan, or by any other means) an indication had been given that the relevant land is, or is likely, to be acquired by an authority possessing compulsory purchase powers.

14 Assumptions as to planning permission

(1)   For the purpose of assessing compensation in respect of any compulsory acquisition, such one or more of the assumptions mentioned in sections fifteen and sixteen of this Act as are applicable to the relevant land or any part thereof shall [(subject to subsection (3A) of this section)] be made in ascertaining the value of the relevant interest. 

(2)   Any planning permission which is to be assumed in accordance with any of the provisions of those sections is in addition to any planning permission which may be in force at the date of service of the notice to treat. 

(3)   Nothing in those provisions shall be construed as requiring it to be assumed that planning permission would necessarily be refused for any development which is not development for which, in accordance with those provisions, the granting of planning permission is to be assumed. 

[(3A)   In determining— 

(a) for the purpose referred to in subsection (1) of this section whether planning permission for any development could in any particular circumstances reasonably have been expected to be granted in respect of any land; or 

 (b) whether any of the assumptions mentioned in section 16 of this Act (but not section 15) are applicable to the relevant land or any part thereof, 

regard shall be had to any contrary opinion expressed in relation to that land in any certificate issued under Part III of this Act.] 

(4)   For the purposes of any reference in this section, or in section fifteen of this Act, to planning permission which is in force on the date of service of the notice to treat, it is immaterial whether the planning permission in question was granted— 

(a) unconditionally or subject to conditions, or 

(b) in respect of the land in question taken by itself or in respect of an area  including that land, or 

 (c) on an ordinary application or on an outline application or by virtue of a development order, 

or is planning permission which, in accordance with any direction or provision given or made by or under any enactment, is deemed to have been granted. 

[(5)   If, in a case where— 

(a)the relevant land is to be acquired for use for or in connection with the construction of a highway, or 

(b) the use of the relevant land for or in connection with the construction of a highway is being considered by a highway authority,  a determination mentioned in subsection (7) of this section falls to be made, that determination shall be made on the following assumption. 

(6)The assumption is that, if the relevant land were not so used, no highway would be constructed to meet the same or substantially the same need as the highway referred to in paragraph (a) or (b) of subsection (5) of this section would have been constructed to meet. 

(7)The determinations referred to in subsection (5) of this section are— 

(a)a determination, for the purpose of assessing compensation in respect of any compulsory acquisition, whether planning permission might reasonably have been expected to be granted for any development if no part of the relevant land were proposed to be acquired by any authority possessing compulsory purchase powers, and 

(b)a determination under section 17 of this Act as to the development for which, in the opinion of the local planning authority, planning permission would or would not have been granted if no part of the relevant land were proposed to be acquired by any authority possessing compulsory purchase powers. 

(8)The references in subsections (5) and (6) of this section to the construction of a highway include its alteration or improvement.][4]

15 Assumptions not directly derived from development plans

(1)   In a case where— 

(a)the relevant interest is to be acquired for purposes which involve the carrying out of proposals of the acquiring authority for development of the relevant land or part thereof, and 

(b)on the date of service of the notice to treat there is not in force planning permission for that development, 

it shall be assumed that planning permission would be granted, in respect of the relevant land or that part thereof, as the case may be, such as would permit development thereof in accordance with the proposals of the acquiring authority. 


(2)   For the purposes of paragraph (b) of the preceding subsection, no account shall be taken of any planning permission so granted as not to enure (while the permission remains in force) for the benefit of the land and of all persons for the time being interested therein.

[(3)   Subject to subsection (4) of this section, it shall be assumed that, in respect of the relevant land or any part of it, planning permission would be granted— 

(a)subject to the condition set out in Schedule 10 to the Town and Country        Planning Act 1990, for any development of a class specified in paragraph 1of  Schedule 3 to that Act; and  

(b)    for any development of a class specified in paragraph 2 of Schedule 3 to     that Act.]  

(4)   Notwithstanding anything in subsection (3) of this section— 

(a), (b)    [. . . ]

(c)    where, at any time before the said date, an order was made under section      twenty-six of the said Act of 1947, in respect of the relevant land or any       part thereof, requiring the removal of any building or the discontinuance of     any use, and compensation became payable in respect of that order under      section twenty-seven of that Act, it shall not by virtue of the said subsection     (3) be assumed that planning permission would be granted, in respect of     the relevant land or that part thereof, as the case may be, for the rebuilding     of that building or the resumption of that use. 

(5)   Where a certificate is issued under the provisions of Part III of this Act, it shall be assumed that any planning permission which, according to the certificate, [would have been] granted in respect of the relevant land or part thereof, [if it were not proposed to be acquired by any authority possessing compulsory purchase powers] would be so granted, but, where any conditions are, in accordance with those provisions, specified in the certificate, only subject to those conditions and, if any future time is so specified, only at that time.

16 Special assumptions in respect of certain land comprised in development plans

(1)   If the relevant land or any part thereof (not being land subject to comprehensive development) consists or forms part of a site defined in the current development plan as the site of proposed development of a description specified in relation thereto in the plan, it shall be assumed that planning permission would be granted for that development. 

(2)   If the relevant land or any part thereof (not being land subject to comprehensive development) consists or forms part of an area shown in the current development plan as an area allocated primarily for a use specified in the plan in relation to that area, it shall be assumed that planning permission would be granted, in respect of the relevant land or that part thereof, as the case may be, for any development which— 

(a) is development for the purposes of that use of the relevant land or that part thereof, and 

(b)is development for which planning permission might reasonably have been expected to be granted in respect of the relevant land or that part thereof, as the case may be. 

(3) – (5) [Not reproduced]

(6)   Where in accordance with any of the preceding subsections it is to be assumed that planning permission would be granted as therein mentioned— 

(a)the assumption shall be that planning permission would be so granted subject to such conditions (if any) as, in the circumstances mentioned in the subsection in question, might reasonably be expected to be imposed by the authority granting the permission, and 

(b)if, in accordance with any map or statement comprised in the current development plan, it is indicated that any such planning permission would be granted only at a future time, then (without prejudice to the preceding paragraph) the assumption shall be that the planning permission in question would be granted at the time when, in accordance with the indications in the plan, that permission might reasonably be expected to be granted. 

(7)   Any reference in this section to development for which planning permission might reasonably have been expected to be granted is a reference to development for which planning permission might reasonably have been expected to be granted if no part of the relevant land were proposed to be acquired by any authority possessing compulsory purchase powers. 

(8)   In this section “land subject to comprehensive development” means land which consists or forms part of an area defined in the current development plan as an area of comprehensive development.

Part III Certification by planning authorities of appropriate alternative development

17 Certification of appropriate alternative development

[(1)   Where an interest in land is proposed to be acquired by an authority possessing compulsory purchase powers, either of the parties directly concerned may, subject to subsection (2) of this section, apply to the local planning authority for a certificate under this section.] 

(2)   [If the authority proposing to acquire the interest] have served a notice to treat in respect thereof, or an agreement has been made for the sale thereof to that authority, and a reference has been made to the Lands Tribunal to determine the amount of the compensation payable in respect of that interest, no application for a certificate under this section shall be made by either of the parties directly concerned after the date of that reference except either— 

(a)with the consent in writing of the other of those parties, or 

(b) with the leave of the Lands Tribunal. 

(3)   An application for a certificate under this section— 

(a)shall state whether or not there are, in the applicant’s opinion, any classes of development which, either immediately or at a future time, would be appropriate for the land in question if it were not proposed to be acquired by any authority possessing compulsory purchase powers and, if so, shall specify the classes of development and the times at which they would be so appropriate; 

(b) shall state the applicant’s grounds for holding that opinion; and 

(c) shall be accompanied by a statement specifying the date on which a copy of the application has been or will be served on the other party directly concerned. 

(4)   Where an application is made to the local planning authority for a certificate under this section in respect of an interest in land, the local planning authority shall, not earlier than twenty-one days after the date specified in the statement mentioned in paragraph (c) of subsection (3) of this section, issue to the applicant a certificate stating either of the following to be the opinion of the local planning authority regarding the grant of planning permission in respect of the land in question, if it were not proposed to be acquired by an authority possessing compulsory purchase powers, that is to say— 

[(a) that planning permission would have been granted for development of one or more classes specified in the certificate (whether specified in the application or not) and for any development for which the land is to be acquired, but would not have been granted for any other development; or 

(b) that planning permission would have been granted for any development for which the land is to be acquired, but would not have been granted for any other development,  

and for the purposes of this subsection development is development for which the land is to be acquired if the land is to be acquired for purposes which involve the carrying out of proposals of the acquiring authority for that development.] 

(5)   Where, in the opinion of the local planning authority, planning permission would have been granted as mentioned in paragraph (a) of subsection (4) of this section, but would only have been granted subject to conditions, or at a future time, or both subject to conditions and at a future time, the certificate shall specify those conditions, or that future time, or both, as the case may be, in addition to the other matters required to be contained in the certificate. 

(6)   For the purposes of subsection (5) of this section, a local planning authority may formulate general requirements applicable to such classes of case as may be described therein; and any conditions required to be specified in the certificate in accordance with that subsection may, if it appears to the local planning authority to be convenient to do so, be specified by reference to those requirements, subject to such special modifications thereof (if any) as may be set out in the certificate. 

(7)   In determining, for the purposes of the issue of a certificate under this section, whether planning permission for any particular class of development would have been granted in respect of any land, the local planning authority shall not treat development of that class as development for which planning permission would have been refused by reason only that it would have involved development of the land in question (or of that land together with other land) otherwise than in accordance with the provisions of the development plan relating thereto. 

(8)    [. . .]

(9)   On issuing to one of the parties directly concerned a certificate under this section in respect of an interest in land, the local planning authority shall serve a copy of the certificate on the other of those parties. 

[(9A)   In assessing the compensation payable to any person in respect of any compulsory acquisition, there shall be taken into account any expenses reasonably incurred by him in connection with the issue of a certificate under this section (including expenses incurred in connection with an appeal under section 18 of this Act where any of the issues on the appeal are determined in his favour).] 

(10) – (11) [Not reproduced]

18 Appeals against certificates under s 17

(1)   Where the local planning authority have issued a certificate under section seventeen of this Act in respect of an interest in land,— 

  (a)    the person for the time being entitled to that interest, or 

  (b)    any authority possessing compulsory purchase powers by whom that       interest is proposed to be acquired, 

may appeal to the Minister against that certificate. 

(2)   On any appeal under this section against a certificate the Minister shall consider the matters to which the certificate relates as if the application for a certificate under section seventeen of this Act had been made to him in the first instance, and shall either confirm the certificate, or vary it, or cancel it and issue a different certificate in its place, as he may consider appropriate. 

(3)   Before determining any such appeal the Minister shall, if any such person or authority as is mentioned in paragraph (a) or paragraph (b) of subsection (1) of this section so desires, afford to each such person or authority and to the local planning authority an opportunity of appearing before and being heard by a person appointed by the Minister for the purpose. 

(4)   Where an application is made for a certificate under section seventeen of this Act, and at the expiry of the time prescribed by a development order for the issue thereof (or, if an extended period is at any time agreed upon in writing by the parties and the local planning authority, at the end of that period) no certificate has been issued by the local planning authority in accordance with that section, the preceding provisions of this section shall apply as if the local planning authority had issued such a certificate containing such a statement as is mentioned in paragraph (b) of subsection (4) of that section.

(19) – (20) [Not reproduced]

21 Proceedings for challenging validity of decision on appeal under s 18

(1)   If any person aggrieved by a decision of the Minister under section eighteen of this Act or the local planning authority desires to question the validity of that decision on the ground that it is not within the powers of this Act or that any of the requirements of this Act or of a development order or of [the Tribunals and Inquiries Act 1992 (or any enactment replaced thereby)], or rules made thereunder have not been complied with in relation to it, that person or authority may, within six weeks from the date of the decision, make an application to the High Court, and the High Court— 

  (a)    may by interim order suspend the operation of the decision until the      determination of the proceedings; 

  (b)   is satisfied that the decision is not within the powers of this Act or that the      interests of the applicant have been substantially prejudiced by a failure to      comply with the said requirements, may quash the decision. 

(2)   Subject to subsection (1) of this section, the validity of a decision on an appeal under section eighteen of this Act shall not be questioned in any legal proceedings whatsoever. 

(3)   Nothing in this section shall affect the exercise of any jurisdiction of any court in respect of any refusal or failure on the part of the Minister to give a decision on an appeal under section eighteen of this Act.

22 Interpretation of Part III

(1)  In this Part of this Act “the parties directly concerned”, in relation to an interest in land, means the person entitled to the interest and the authority by whom it is proposed to be acquired.

(2)   For the purposes of sections seventeen and eighteen of this Act, an interest in land shall be taken to be an interest proposed to be acquired by an authority possessing compulsory purchase powers in the following (but no other) circumstances, that is to say— 

(a)   where, for the purpose of a compulsory acquisition by that authority of land consisting of or including land in which that interest subsists, a notice required to be published or served in connection with that acquisition, either by an Act or by any Standing Order of either House of Parliament relating to petitions for private bills, has been published or served in accordance with that Act or Order; or 

(b) where a notice requiring the purchase of that interest has been served under any enactment, and in accordance with that enactment that authority are to be deemed to have served a notice to treat in respect of that interest; or 

(c)where an offer in writing has been made by or on behalf of that authority to negotiate for the purchase of that interest. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First Schedule

ACTUAL OR PROSPECTIVE DEVELOPMENT RELEVANT FOR PURPOSES OF SECTIONS 6 & 7

PART I

DESCRIPTION OF DEVELOPMENT


Case


Development

1. Where the acquisition is for purposes involving development of any of the land authorised to be acquired.

Development of any of the land authorised to be acquired, other than the relevant land, being development for any of the purposes for which any part of the first-mentioned land (including any part of the relevant land) is to be acquired.


2. Where any of the relevant land forms part of an area defined in the current development plan as an area of comprehensive development.

Development of any land in that area, other than the relevant land, in the course of the development or redevelopment of the area in accordance with the plan.

 

3. Where on the date of service of the notice to treat any of the relevant land forms part of an area designated as the site of a new town by an order under the New Towns Act 1965 .

 

Development of any land in that area, other than the relevant land, in the course of the development of that area as a new town.

3A. Where on the date of service of notice to treat any of the relevant land forms part of an area designated as an extension of the site of a new town by an order under the New Towns Act 1965 becoming operative after the date of the commencement of New Towns Act 1966.

Development of any land included in that area, other than the relevant land, in the course of the development of that area as part of a new town.

4. Where any of the relevant land forms part of an area defined in the current development plan as an area of town development.

Development of any land in that area, other than the relevant land, in the course of town development within the meaning of the Town Development Act 1952.

4A. Where any of the relevant land forms part of an area designated as an urban development area by an order under section 134 of the Local Government, Planning and Land Act 1980.

Development of any land other than the relevant land, in the course of the development or redevelopment of that area as an urban development area.


4B. Where any of the relevant land forms part of a housing action trust area established under Part III of the Housing Act 1988.  


Development of any land other than the relevant land in the course of the development or re-development of the area as a housing action trust area.

 

[Part II and III of the First Schedule contain special provisions, respectively, for New Towns and Urban Development Areas]

Compulsory Purchase Act 1965

7 Measure of compensation in case of severance

In assessing the compensation to be paid by the acquiring authority under this Act regard shall be had not only to the value of the land to be purchased by the acquiring authority, but also to the damage, if any, to be sustained by the owner of the land by reason of the severing of the land purchased from the other land of the owner, or otherwise injuriously affecting that other land by the exercise of the powers conferred by this or the special Act.

10 Further provision as to compensation for injurious affection

(1)   If any person claims compensation in respect of any land, or any interest in land, which has been taken for or injuriously affected by the execution of the works, and for which the acquiring authority have not made satisfaction under the provisions of this Act, or of the special Act, any dispute arising in relation to the compensation shall be referred to and determined by the Lands Tribunal. 

(2) This section shall be construed as affording in all cases a right to compensation for injurious affection to land which is the same as the right which section 68 of the Lands Clauses Consolidation Act 1845 has been construed as affording in cases where the amount claimed exceeds fifty pounds.

(3) Where this Part of this Act applies by virtue of [Part IX of the Town and Country Planning Act 1990] reference in this section to the acquiring authority shall be construed in accordance with [section 245(4)(b) of that Act].

20 Tenants at will etc

(1)   If any of the land subject to compulsory purchase is in the possession of a person having no greater interest in the land than as tenant for a year or from year to year, and if that person is required to give up possession of any land so occupied by him before the expiration of his term or interest in the land, he shall be entitled to compensation for the value of his unexpired term or interest in the land, and for any just allowance which ought to be made to him by an incoming tenant, and for any loss or injury he may sustain.  

(2)  If a part only of such land is required, he shall also be entitled to compensation for the damage done to him [by severing] land held by him or otherwise injuriously affecting it. 

(3) – (6) [Not reproduced]

 

 

 

 

Land Compensation Act 1973, Part I: compensation for depreciation caused by use of public works

1 Right to compensation

(1)   Where the value of an interest in land is depreciated by physical factors caused by the use of public works, then, if— 

(a)the interest qualifies for compensation under this Part of this Act; and 

(b)the person entitled to the interest makes a claim [after the time provided] by and otherwise in accordance with this Part of this Act, 

compensation for that depreciation shall, subject to the provisions of this Part of this Act, be payable by the responsible authority to the person making the claim (hereafter referred to as “the claimant”). 

(2)   The physical factors mentioned in subsection (1) above are noise, vibration, smell, fumes, smoke and artificial lighting and the discharge on to the land in respect of which the claim is made of any solid or liquid substance. 

(3)   The public works mentioned in subsection (1) above are— 

(a)any highway; 

(b)any aerodrome; and 

(c)any works or land (not being a highway or aerodrome) provided or used in the exercise of statutory powers. 

(4)   The responsible authority mentioned in subsection (1) above is, in relation to a highway, the appropriate highway authority and, in relation to other public works, the person managing those works. 

(5)   Physical factors caused by an aircraft arriving at or departing from an aerodrome shall be treated as caused by the use of the aerodrome whether or not the aircraft is within the boundaries of the aerodrome; but, save as aforesaid, the source of the physical factors must be situated on or in the public works the use of which is alleged to be their cause. 

(6)   Compensation shall not be payable under this Part of this Act in respect of the physical factors caused by the use of any public works other than a highway unless immunity from actions for nuisance in respect of that use is conferred (whether expressly or by implication) by an enactment relating to those works or, in the case of an aerodrome and physical factors caused by aircraft, the aerodrome is one to which [section 77(2) of the Civil Aviation Act 1982] (immunity from actions for nuisance) for the time being applies. 

(7)   Compensation shall not be payable under this Part of this Act in respect of physical factors caused by accidents involving vehicles on a highway or accidents involving aircraft. 

(8)   Compensation shall not be payable under this Part of this Act on any claim unless the relevant date in relation to the claim falls on or after 17th October 1969. 

(9)   Subject to section 9 below, “the relevant date” in this Part of this Act means— 

(a)in relation to a claim in respect of a highway, the date on which it was first open to public traffic; 

(b)in relation to a claim in respect of other public works, the date on which they were first used after completion. 

2 Interests qualifying for compensation

(1)   An interest qualifies for compensation under this Part of this Act if it was acquired by the claimant before the relevant date in relation to the claim and the requirements of subsection (2) or, as the case may be, subsection (3) below are satisfied on the date on which notice of the claim for compensation in respect of that interest is served. 

(2)   If and so far as the interest is in land which is a dwelling, the said requirements are— 

(a)that the interest is an owner’s interest; and 

(b)where the interest carries the right to occupy the land, that the land is occupied by the claimant in right of that interest as his residence. 

(3)   If and so far as the interest is not in such land as aforesaid, the said requirements are— 

(a) that the interest is that of an owner-occupier; and 

(b) that the land is or forms part of either— 

(i)a hereditament the annual value of which does not exceed the prescribed amount; or 

(ii) an agricultural unit. 

(4)   In this section “owner’s interest” in relation to any land, means the legal fee simple therein or a tenancy thereof granted or extended for a term of years certain of which, on the date of service of the notice of claim in respect thereof, not less than three years remain unexpired. 

(5)   In this section “owner-occupier”, in relation to land in a hereditament, means a person who occupies the whole or a substantial part of the land in right of an owner’s interest therein and, in relation to land in an agricultural unit, means a person who occupies the whole of that unit and is entitled, while so occupying it, to an owner’s interest in the whole or any part of that land. 

(6)   In this section “the prescribed amount” means the amount for the time being prescribed for the purposes of [section 149(3)(a) of the Town and Country Planning Act 1990] (interests qualifying for protection under planning blight provisions) and “annual value” and “hereditament” have the meanings given in [section 171] of that Act taking references to the date of service of a notice under [section 150] of that Act as references to the date on which notice of the claim is served. 

(7)   This section has effect subject to sections 10(4), 11 and 12 below. 

(8)    . . . 

 3 Claims

(1)   A claim under this Part of this Act shall be made by serving on the responsible authority a notice containing particulars of— 

(a)the land in respect of which the claim is made; 

(b)the claimant’s interest and the date on which, and the manner in which, it was acquired; 

(c) the claimant’s occupation of the land (except where the interest qualifies for compensation without occupation); 

(d)any other interests in the land so far as known to the claimant; 

(e) the public works to which the claim relates; 

(f) the amount of compensation claimed; 

(g)any land contiguous or adjacent to the land in respect of which the claim is made, being land to which the claimant was entitled in the same capacity (within the meaning of section 6 below) on the relevant date. 

(2)   Subject to the provisions of this section and of sections 12 and 14 below, no claim shall be made [before the expiration of twelve months from the relevant date; and the day next following the expiration of the said twelve months is in this Part of this Act referred to as “the first claim day”.] 

(3)   Subsection (2) above shall not preclude the making of a claim in respect of an interest in land before [the first claim day] if— 

(a)the claimant has during the said twelve months made a contract for disposing of that interest or (in so far as the interest is in land which is not a dwelling) for the grant of a tenancy of that land; and 

(b)the claim is made before the interest is disposed of or the tenancy is granted; 

but compensation shall not be payable before [the first claim day] on any claim made by virtue of this subsection. 

(4)   Where notice of a claim has been served on a responsible authority, any person authorised by that authority may, on giving reasonable notice, enter the land to which the claim relates for the purpose of surveying it and ascertaining its value in connection with the claim; and any person who wilfully obstructs a person in the exercise of the powers conferred by this subsection shall be guilty of an offence and liable on summary conviction to a fine not exceeding [level 1 on the standard scale]. 

(5)   Where compensation is payable by a responsible authority on a claim there shall be payable by the authority, in addition to the compensation, any reasonable valuation or legal expenses incurred by the claimant for the purposes of the preparation and prosecution of the claim; but this subsection is without prejudice to the power of the Lands Tribunal . . . in respect of the costs . . . of proceedings before the Tribunal by virtue of section 16 below.

4 Assessment of compensation: general provisions

(1)   The compensation payable on any claim shall be assessed by reference to prices current on [the first claim day]. 

(2)   In assessing depreciation due to the physical factors caused by the use of any public works, account shall be taken of the use of those works as it exists on [the first claim day] and of any intensification that may then be reasonably expected of the use of those works in the state in which they are on that date. 

(3)   In assessing the extent of the depreciation there shall be taken into account the benefit of any relevant works— 

(a)which have been carried out, or in respect of which a grant has been paid, under section 20 below, section 15 of the Airports Authority Act 1965 [section 29A of the Civil Aviation Act 1971] [, section 79 of the Civil Aviation Act 1982] or any corresponding local enactment [or under any provision of a scheme operated by a person managing an aerodrome which provides for the payment of sound-proofing grants in respect of buildings near the aerodrome]; 

(b)which have been carried out under section 23 or 27 below; 

and it shall be assumed that any relevant works which could be or could have been carried out, or in respect of which a grant could be or could have been paid, under any of the provisions mentioned in paragraph (a) above have been carried out but, in a case where the authority having functions under that provision have a discretion whether or not to carry out the works or pay the grant, only if they have undertaken to do so. 

[In paragraph (a) above “sound-proofing grants”, in relation to any buildings, means grants towards the cost of insulating those buildings or parts of those buildings against noise.] 

(4)   The value of the interest in respect of which the claim is made shall be assessed— 

(a) subject to subsection (5) below, by reference to the nature of the interest and the condition of the land as it subsisted on the date of service of notice of the claim; 

(b)subject to section 5 below, in accordance with rules (2) to (4) of the rules set out in section 5 of the Land Compensation Act 1961; 

(c)if the interest is subject to a mortgage or to a contract of sale or to a contract made after the relevant date for the grant of a tenancy, as if it were not subject to the mortgage or contract. 

(5)   In assessing the value of the interest in respect of which the claim is made there shall be left out of account any part of that value which is attributable to— 

(a)any building, or improvement or extension of a building, on the land if the building or, as the case may be, the building as improved or extended, was first occupied after the relevant date; and 

(b) any change in the use of the land made after that date. 

 (6)    . . .

5 Assessment of compensation: assumptions as to planning permission

(1)   The following assumptions shall be made in assessing the value of the interest in respect of which the claim is made. 

[(2)   Subject to subsection (3) below, it shall be assumed that, in respect of the land in which the interest subsists (“the relevant land”) or any part of it, planning permission would be granted— 

(a)subject to the condition set out in Schedule 10 to the Town and Country Planning Act 1990, for any development of a class specified in paragraph 1 of Schedule 3 to that Act; and 

(b)for any development of a class specified in paragraph 2 of Schedule 3 to that Act.] 

(3)   Notwithstanding subsection (2) above— 

(a), (b)    . . . 

(c)where an order has been made under [section 102 of or paragraph 1 of Schedule 9 to the said Act of 1990], in respect of the relevant land or any part thereof, requiring the removal of any building or the discontinuance of any use, and compensation has become payable in respect of that order under [section 115] of that Act, it shall not by virtue of the said subsection (2) be assumed that planning permission would be granted, in respect of the relevant land or any part thereof, as the case may be, for the rebuilding of that building or the resumption of that use. 

(4)   It shall be assumed that planning permission would not be granted in respect of the relevant land or any part thereof for any development other than such development as is mentioned in subsection (2) above; and, if planning permission has been granted in respect of the relevant land or any part thereof for such other development, it shall be assumed that the planning permission has not been granted in so far as it relates to development that has not been carried out. 

(5)   In this section any expression which is also used in [the said Act of 1990] has the same meaning as in that Act and references to any provision of that Act include references to any corresponding provision previously in force. 

(6)    . . .

 

6 Reduction of compensation where land is benefited

(1)   The compensation payable on a claim shall be reduced by an amount equal to any increase in the value of— 

(a)the claimant’s interest in the land in respect of which the claim is made; and 

(b)any interest in other land contiguous or adjacent to the land mentioned in paragraph (a) above to which the claimant was entitled in the same capacity on the relevant date, 

which is attributable to the existence of or the use or prospective use of the public works to which the claim relates. 

(2)   Sections 4 and 5 above shall not apply to the assessment, for the purposes of subsection (1) above, of the value of the interest mentioned in paragraph (a) of that subsection. 

(3)   Where, for the purpose of assessing compensation on a claim in respect of any interest in land, an increase in the value of an interest in other land has been taken into account under subsection (1) above, then, in connection with any subsequent acquisition to which this subsection applies, that increase shall not be left out of account by virtue of section 6 of the Land Compensation Act 1961 or taken into account by virtue of section 7 of that Act or any corresponding enactment, in so far as it was taken into account in connection with that claim. 

(4)   Subsection (3) above applies to any subsequent acquisition, not being an acquisition of the land in respect of which the claim is made, where either— 

(a)the interest acquired by the subsequent acquisition is the same as the interest previously taken into account (whether the acquisition extends to the whole of the land in which that interest previously subsisted or only to part of that land); or 

(b)the person entitled to the interest acquired is, or directly or indirectly derives title to that interest from, the person who at the time of the claim mentioned in that subsection was entitled to the interest previously taken into account; 

and in this subsection “the interest previously taken into account” means the interest the increased value of which was taken into account as mentioned in the said subsection (3). 

(5)   For the purposes of this section a person entitled to two interests in land shall be taken to be entitled to them in the same capacity if, but only if, he is entitled— 

(a)to both of them beneficially; or 

(b)to both of them as trustee of one particular trust; or 

(c)to both of them as personal representative of one particular person; 

and in this section references to a person deriving title from another person include references to any successor in title of that other person. 

 

(6)   In subsection (3) above “corresponding enactment” has the same meaning as in section 8 of the said Act of 1961. 

(7)    . . . 

7 Exclusion of minimal compensation

Compensation shall not be payable on any claim unless the amount of the compensation exceeds £50. 

8 Other restrictions on compensation

(1)   Where a claim has been made in respect of depreciation of the value of an interest in land caused by the use of any public works and compensation has been paid or is payable on that claim, compensation shall not be payable on any subsequent claim in relation to the same works and the same land or any part thereof (whether in respect of the same or a different interest) except that, in the case of land which is a dwelling, this subsection shall not preclude the payment of compensation both on a claim in respect of the fee simple and on a claim in respect of a tenancy. 

(2)   Where a person is entitled to compensation in respect of the acquisition of an interest in land by an authority possessing compulsory purchase powers, or would be so entitled if the acquisition were compulsory, and— 

(a)the land is acquired for the purposes of any public works; and 

(b) that person retains land which, in relation to the land acquired, constitutes other land or lands within the meaning of section 63 of the Lands Clauses Consolidation Act 1845 or section 7 of the Compulsory Purchase Act 1965 (compensation for acquisition to include compensation for injurious affection of other land retained), 

then, whether or not any sum is paid or payable in respect of injurious affection of the land retained, compensation shall not be payable under this Part of this Act on any claim in relation to those works made after the date of service of the notice to treat (or, if the acquisition is by agreement, the date of the agreement) in respect of any interest in the land retained. 

(3)   Subsection (2) above applies whether the acquisition is before, on or after the date on which this Part of this Act comes into force (hereafter referred to as “the commencement date”) and, where it is on or after that date, the public works for the purposes of which the land is acquired shall be taken to be those specified in the relevant particulars registered under subsection (4) below. 

(4)   Where on or after the commencement date an authority possessing compulsory purchase powers acquires land for the purposes of any public works and the person from whom the land is acquired retains land which, in relation to the land acquired, constitutes other land or lands within the meaning of the sections mentioned in subsection (2) above, the authority shall deposit particulars of the land retained and the nature and extent of those works with the council of the district or London borough [or Welsh county or county borough] in which the land retained is situated; . . . 

[(4A)   Any particulars deposited pursuant to subsection (4) above shall be a local land charge and for the purposes of the Local Land Charges Act 1975 the council with whom any such particulars are deposited shall be treated as the originating authority as respects the charge thereby constituted.] 

(5)   In a case in which compensation for injurious affection fell or falls to be assessed otherwise than in accordance with section 44 below, subsection (2) above shall not preclude the payment of compensation under this Part of this Act in respect of depreciation by public works so far as situated elsewhere than on the land acquired. 

(6)   Where after a claim has been made in respect of any interest in land the whole or part of the land in which that interest subsists is compulsorily acquired, then, if— 

(a)the value of that land has been diminished by the public works to which the claim relates; but 

(b)the compensation in respect of the compulsory acquisition falls to be assessed without regard to the diminution, 

the compensation in respect of the acquisition shall be reduced by an amount equal to the compensation paid or payable on the claim or, if the acquisition extends only to part of the land, to so much of the last-mentioned compensation as is attributable to that part. 

(7)   Without prejudice to the foregoing provisions of this section, compensation shall not be payable in respect of the same depreciation both under this Part of this Act and under any other enactment. 

(8)    . . .

9 Alterations to public works and changes of use

(1)   This section has effect where, whether before, on or after the commencement date— 

(a)the carriageway of a highway has been altered after the highway has been open to public traffic; 

(b)any public works other than a highway have been reconstructed, extended or otherwise altered after they have been first used; or 

(c) there has been a change of use in respect of any public works other than a highway or aerodrome. 

(2)   If and so far as a claim in respect of the highway or other public works relates to depreciation that would not have been caused but for the alterations or change of use, this Part of this Act shall, subject to subsection (3) below, have effect in relation to the claim as if the relevant date (instead of being the date specified in section 1(9) above) were— 

(a)the date on which the highway was first open to public traffic after completion of the alterations to the carriageway; 

 

(b)the date on which the other public works were first used after completion of the alterations; or 

(c) the date of the change of use, 

as the case may be. 

(3)   Subsection (2) above shall not by virtue of any alterations to an aerodrome apply to a claim in respect of physical factors caused by aircraft unless the alterations are runway or apron alterations. 

(4)   Where a claim relates to such depreciation as is mentioned in subsection (2) above the notice of claim shall specify, in addition to the matters mentioned in section 3 above, the alterations or change of use alleged to give rise to the depreciation; and if and so far as the claim relates to such depreciation— 

(a)section 6 above shall have effect as if the increase in value to be taken into account were any increase that it would not have been caused but for the alterations or change of use in question, 

(b)subsection (1) of section 8 above shall not preclude the payment of compensation unless the previous claim was in respect of depreciation that would not have been caused but for the same alterations or change of use, and subsection (2) of that section shall not preclude the payment of compensation unless the works for which the land was acquired were works resulting from the alterations, or works used for the purpose, to which the claim relates. 

(5)   For the purposes of this section the carriageway of a highway is altered if, and only if— 

(a)the location, width or level of the carriageway is altered (otherwise than by re-surfacing); or 

(b) an additional carriageway is provided for the highway beside, above or below an existing one; 

and the reference in subsection (2) above to depreciation that would not have been caused but for alterations to the carriageway of a highway is a reference to such depreciation by physical factors which are caused by the use of, and the source of which is situated on, the length of carriageway which has been altered as mentioned in paragraph (a) above or, as the case may be, the additional carriageway and the corresponding length of the existing one mentioned in paragraph (b) above. 

(6)   In this section “runway or apron alterations” means— 

(a)the construction of a new runway, the major re-alignment of an existing runway or the extension or strengthening of an existing runway; or 

(b)a substantial addition to, or alteration of, a taxiway or apron, being an addition or alteration whose purpose or main purpose is the provision of facilities for a greater number of aircraft. 

(7)   For the avoidance of doubt it is hereby declared that references in this section to a change of use do not include references to the intensification of an existing use. 

10 Mortgages, trusts of land and settlements

(1)   Where an interest is subject to a mortgage— 

(a)a claim may be made by any mortgagee of the interest as if he were the person entitled to that interest but without prejudice to the making of a claim by that person; 

(b)no compensation shall be payable in respect of the interest of the mortgagee (as distinct from the interest which is subject to the mortgage); 

(c) any compensation which is payable in respect of the interest which is subject to the mortgage shall be paid to the mortgagee or, if there is more than one mortgagee, to the first mortgagee and shall in either case be applied by him as if it were proceeds of sale. 

(2)   Where the interest is [subject to a trust of land] the compensation shall be dealt with as if it were proceeds of sale arising under the trust. 

(3)   Where the interest is settled land for the purposes of the Settled Land Act 1925 the compensation shall be treated as capital money arising under that Act. 

(4)   Where an interest in land is vested in trustees (other than a sole tenant for life within the meaning of the Settled Land Act 1925) and a person beneficially entitled (whether directly or derivatively) under the trusts is entitled or permitted by reason of his interest to occupy the land, section 2 above shall have effect as if occupation by that person were occupation by the trustees in right of the interest vested in them. 

 (5)    . . .

11 Interests acquired by inheritance

(1)   So much of section 2(1) above as requires an interest qualifying for compensation under this Part of this Act to have been acquired by the claimant before the relevant date shall not apply to any interest acquired by him by inheritance from a person who acquired that interest, or a greater interest out of which it is derived, before the relevant date. 

(2)   For the purposes of this section an interest is acquired by a person by inheritance if it devolves on him by virtue only of testamentary dispositions taking effect on, or the law of intestate succession or the right of survivorship between joint tenants as applied to, the death of another person or the successive deaths of two or more other persons. 

(3)   For the purposes of subsection (2) above a person who acquires an interest by appropriation of it in or towards satisfaction of any legacy, share in residue or other share in the estate of a deceased person shall be treated as a person on whom the interest devolves by direct bequest. 

(4)   Where an interest is settled land for the purposes of the Settled Land Act 1925 and on the death of a tenant for life within the meaning of that Act a person becomes entitled to the interest in accordance with the settlement, or by any appropriation by the personal representatives in respect of the settled land, subsection (2) above shall apply as if the interest had belonged to the tenant for life absolutely and the trusts of the settlement taking effect after his death had been trusts of his will. 

(5)   Subsection (4) above shall apply, with any necessary modifications, where a person becomes entitled to an interest on the termination of a settlement as it would apply if he had become entitled in accordance with the terms of the settlement. 

(6)    . . . 

12 Tenants entitled to enfranchisement or extension under Leasehold Reform Act 1967

[Not reproduced]

12A Tenants participating in collective enfranchisement, or entitled to  individual lease extension, under Part I of Leasehold Reform, Housing and Urban Development Act 1993

[Not reproduced] 

13 Ecclesiastical property

[Not reproduced] 

15 Information for ascertaining relevant date

(1)   The responsible authority in relation to a highway or other public works shall keep a record and, on demand, furnish a statement in writing of— 

(a) the date on which the highway was first open to public traffic, or was first open to public traffic after completion of any particular alterations to the carriageway of the highway; 

(b) the date on which the public works were first used after completion, or were first used after completion of any particular alterations to those works; 

(c)in the case of public works other than a highway or aerodrome, the date on which there was a change of use in respect of the public works. 

(2)   A certificate by the Secretary of State stating that runway or apron alterations have or have not been carried out at an aerodrome and the date on which an aerodrome at which any such alterations have been carried out was first used after completion of the alterations shall be conclusive evidence of the facts stated. 

(3)   In this section references to alterations to the carriageway of a highway, to runway or apron alterations and to a change of use shall be construed in the same way as in section 9 above; and subsection (1) above shall not apply unless the date in question falls on or after the commencement date. 

16 Disputes

(1)   Any question of disputed compensation under this Part of this Act shall be referred to and determined by the Lands Tribunal . . . 

(2)   No such question arising out of a claim made before [the first claim day] shall be referred to [the Tribunal] before the beginning of [that day]. 

17 Action for nuisance following unsuccessful claims where responsible authority have disclaimed statutory immunity

Where, in resisting a claim under this Part of this Act, a responsible authority contend that no enactment relating to the works in question confers immunity from actions for nuisance in respect of the use to which the claim relates, then if— 

(a)compensation is not paid on the claim; and 

(b)an action for nuisance in respect of the matters which were the subject of the claim is subsequently brought by the claimant against the authority, 

no enactment relating to those works, being an enactment in force when the contention was made, shall afford a defence to that action in so far as it relates to those matters.

18 Interest on compensation

1)   Compensation under this Part of this Act shall carry interest, at the rate for the time being prescribed under section 32 of the Land Compensation Act 1961, from— 

(a) the date of service of the notice of claim; or 

(b)if that date is before [the first claim day], from the beginning of the claim period, 

until payment. 

(2)   . . . 

19 Interpretation of Part I

(1)   In this Part of this Act— 

“the appropriate highway authority” means— 

(a)except where paragraph (b) below applies, the highway authority who constructed the highway to which the claim relates [or any other authority to which the functions of that authority in relation to that highway are transferred by virtue of the Local Government Act 1985] [or the Local Government (Wales) Act 1994]; 

(b)if and so far as the claim relates to depreciation that would not have been caused but for alterations to the carriageway of a highway, the highway authority who carried out the alterations [or any other authority to which the functions of that authority in relation to that highway are transferred by virtue of [either of those Acts]]; 

“claim” means a claim under this Part of this Act and “the claimant” means the person making such a claim; 

. . . 

“commencement date” means the date on which this Part of this Act comes into force; 

[“the first claim day” has the meaning given in section 3(2) above;] 

“highway” includes part of a highway and . . . means a highway or part of a highway maintainable at the public expense as defined in [section 329(1) of the Highways Act 1980] . . . 

. . . 

“public works” and “responsible authority” have the meaning given in section 1 above; 

 “the relevant date” has the meaning given in sections 1(9) and 9(2) above. 

(2)   For the purposes of sections 2(1), 11(1) and 14(2) above an interest acquired or disposed of, or a tenancy granted, pursuant to a contract shall be treated as acquired, disposed of or granted when the contract was made. 

[(2A)   For the purposes of the Limitation Act 1939, a person’s right of action to recover compensation under this Part of this Act shall be deemed to have accrued on the first claim day.] 

(3)   In the application of this Part of this Act to a highway which has not always since 17th October 1969 been a highway maintainable at the public expense as defined above— 

(a)references to its being open to public traffic shall be construed as references to its being so open whether or not as a highway so maintainable; 

(b)for references to the highway authority who constructed it there shall be substituted references to the highway authority for the highway; 

and no claim shall be made if the relevant date falls at a time when the highway was not so maintainable and the highway does not become so maintainable within three years of that date . . . 

(4)    . . .

Land Compensation Act 1973, Part IV: Compulsory Purchase. Assessment of compensation

45 Compensation for acquisition of dwelling specially adapted for disabled person 

(1)   This section applies to the assessment of compensation in respect of the compulsory acquisition of an interest in a dwelling which— 

  (a)    has been constructed or substantially modified to meet the special needs of      a disabled person; and 

  (b)    is occupied by such a person as his residence immediately before the date      when the acquiring authority take possession of the dwelling or was last so            occupied before that date. 

(2)   The compensation shall, if the person whose interest is acquired so elects, be assessed as if the dwelling were land which is devoted to a purpose of such a nature that there is no general demand or market for land for that purpose. 

46 Compensation for disturbance where business carried on by person over sixty 

(1)   Where a person is carrying on a trade or business on any land and, in consequence of the compulsory acquisition of the whole of that land, is required to give up possession thereof to the acquiring authority then if— 

  (a)    on the date on which he gives up possession as aforesaid he has attained the      age of sixty; and

  (b)    on that date the land is or forms part of a hereditament the annual value of          which does not exceed the prescribed amount; and

  (c)    that person has not disposed of the goodwill of the whole of the trade or      business and gives to the acquiring authority the undertakings mentioned in      subsection (3) below, 

the compensation payable to that person in respect of the compulsory acquisition of his interest in the land or, as the case may be, under section 121 of the Lands Clauses Consolidation Act 1845 or section 20 of the Compulsory Purchase Act 1965 (tenants from year to year etc) shall, so far as attributable to disturbance, be assessed on the assumption that it is not reasonably practicable for that person to carry on the trade or business or, as the case may be, the part thereof the goodwill of which he has retained, elsewhere than on that land. 

(2)   In subsection (1) above “the prescribed amount” means the amount which on the date mentioned in that subsection is the amount prescribed for the purposes of [section 149(3)(a) of the Town and Country Planning Act 1990] (interests qualifying for protection under planning blight provisions) and “annual value” and “hereditament” have the meaning given in [section 171] of the Act taking references to the date of service of a notice under [section 150] of that Act as references to the date mentioned in subsection (1) above. 

 (3)   The undertakings to be given by the person claiming compensation are— 

   (a)    an undertaking that he will not dispose of the goodwill of the trade or       business, or, as the case may be, of the part thereof the goodwill of which he       has retained; and 

  (b)    an undertaking that he will not, within such area and for such time as the       acquiring authority may require, directly or indirectly engage in or have any       interest in any other trade or business of the same or substantially the same       kind as that carried on by him on the land acquired. 

(4)   If an undertaking given by a person for the purposes of this section is broken the acquiring authority may recover from him an amount equal to the difference between the compensation paid and the compensation that would have been payable if it had been assessed without regard to the provision of this section. 

(5)   This section shall apply to a trade or business carried on by two or more persons in partnership as if references to the person by whom it is carried on were references to all the partners and as if the undertakings mentioned in subsection (3) above were required to be given by all the partners. 

(6)   This section shall apply to a trade or business carried on by a company— 

  (a)    as if subsection(1)(a) above required— 

    (i)   each shareholder, other than a minority shareholder, to be an individual       who has attained the age of sixty on the date there mentioned; and 

   (ii)   each minority shareholder to be an individual who either has attained that       age on that date or is the spouse of a shareholder who has attained that age         on that date; and 

  (b)    as if the undertakings mentioned in subsection (3)(b) above were required        to be given both by the company and by each shareholder. 

In this subsection “shareholder” means a person who is beneficially entitled to a share or shares in the company carrying voting rights and “minority shareholder” means a person who is so entitled to less than 50 per cent, of those shares. 

(7)   This section shall apply in relation to any disturbance payment assessed in accordance with section 38(1)(b) above as it applies in relation to the compensation mentioned in subsection (1) above, and shall so apply subject to the necessary modifications and as if references to the giving up of possession of land to the acquiring authority in consequence of its compulsory acquisition were references to displacement as mentioned in section 37 above. 

(8)    . . .

50 Compensation where occupier is rehoused 

 (1)   The amount of compensation payable in respect of the compulsory acquisition of an interest in land shall not be subject to any reduction on account of the fact that the acquiring authority have provided, or undertake to provide or arrange for the provision of, or another authority will provide, residential accommodation under any enactment for the person entitled to the compensation. 

 

(2)   In assessing the compensation payable in respect of the compulsory acquisition of an interest in land which on the date of service of the notice to treat is subject to a tenancy, there shall be left out of account any part of the value of that interest which is attributable to, or to the prospect of, the tenant giving up possession after that date in consequence of being provided with other accommodation by virtue of section 39(1)(a) above; and for the purpose of determining the date of reference to which that compensation is to be assessed the acquiring authority shall be deemed, where the tenant gives up possession as aforesaid, to have taken possession on the date on which it is given up by the tenant. 

(3)   Subsection (1) above shall apply in relation to any payment to which a person is entitled under Part III of this Act as it applies in relation to the compensation mentioned in that subsection taking references to the acquiring authority as references to the authority responsible for making that payment. 

(4)   Subsection (2) above shall apply in relation to a case where a notice to treat is deemed to have been served by virtue of [Part III of the Compulsory Purchase (Vesting Declarations) Act 1981] . . . (general vesting declarations) as it applies in relation to a case where a notice to treat is actually served.

52 Right to advance payment of compensation  

(1)   Where an acquiring authority have taken possession of any land the authority shall, if a request in that behalf is made in accordance with subsection (2) below, make an advance payment on account of any compensation payable by them for the compulsory acquisition of any interest in that land. 

(2)  Any request under this section shall be made by the person entitled to the compensation (hereafter referred to as “the claimant”), shall be in writing, shall give particulars of the claimant’s interest in the land (so far as not already given pursuant to a notice to treat) and shall be accompanied or supplemented by such other particulars as the acquiring authority may reasonably require to enable them to estimate the amount of the compensation in respect of which the advance payment is to be made. 

(3)  Subject to subsection (6) below, the amount of any advance payment under this section shall be equal to 90 per cent. of the following amount, that is to say— 

  (a)    if the acquiring authority and the claimant have agreed on the amount of the compensation, the agreed amount; 

  (b)    in any other case, an amount equal to the compensation as estimated by the acquiring authority. 

(4) Any advance payment under this section shall be made not later than three months after the date on which a request for the payment is made in accordance with subsection (2) above or, if those three months end before the date on which the acquiring authority take possession of the land to which the compensation relates, on the date on which they take possession as aforesaid. 

[(4A)   Where, at any time after an advance payment has been made on the basis of the acquiring authority’s estimate of the compensation, it appears to the acquiring authority that their estimate was too low, they shall, if a request in that behalf is made in accordance with subsection (2) above, pay to the claimant the balance of the amount of the advance payment calculated as at that time. 

(5) Where the amount, or aggregate amount, of any payment under this section made on the basis of the acquiring authority’s estimate of the compensation exceeds the compensation as finally determined or agreed, the excess shall be repaid; and if after any payment under this section has been made to any person it is discovered that he was not entitled to it, the amount of the payment shall be recoverable by the acquiring authority.] 

(6) No advance payment shall be made on account of compensation payable in respect of any land which is subject to a mortgage the principal of which exceeds 90 per cent. of the amount mentioned in subsection (3) above; and where the land is subject to a mortgage the principal of which does not exceed 90 per cent. of that amount, the advance payment shall be reduced by such sum as the acquiring authority consider will be required by them for securing the release of the interest of the mortgagee.

(7)  Any advance payment on account of compensation in respect of an interest which is settled land for the purposes of the Settled Land Act 1925 shall be made to the persons entitled to give a discharge for capital money and shall be treated as capital money arising under that Act.

(8)  [Before] an acquiring authority make an advance payment under this section on account of compensation in respect of any interest in land they shall deposit with the council of the district or London borough [or Welsh county or county borough] in which the land is situated particulars of the payment [to be made], the compensation and the interest in land to which it relates; . . .

[(8A)   Any particulars deposited pursuant to subsection (8) above shall be a local land charge and for the purposes of the Local Land Charges Act 1975 the council with whom any such particulars are deposited shall be treated as the originating authority as respects the charge thereby constituted.]

(9) [Where a local land charge is registered in the appropriate local land charges register pursuant to subsection (8A) above and the advance payment to which the charge relates is made to the claimant, then if thereafter he] disposes of the interest in the land to, or creates an interest in the land in favour of, a person other than the acquiring authority, the amount of the advance payment [together with any amount paid under section 52A] shall be set off against any sum payable by the authority to that other person in respect of the compulsory acquisition of the interest disposed of or the compulsory acquisition or release of the interest created

(10) Where an advance payment has been made under this section on account of any compensation— 

(a) section 76 of the Lands Clauses Consolidation Act 1845 and section 9 of the Compulsory Purchase Act 1965 (refusal of owner to convey on tender of compensation) shall have effect as if references to the compensation were references to the balance thereof remaining unpaid; . . .

(b) . . . 

 

(11) Where the acquiring authority, instead of taking possession of any land, serve a notice in respect of that land under [section 583 of the Housing Act 1985] (notice authorising existing occupier to continue in occupation where house acquired for housing purposes) this section shall have effect as if they had taken possession of the land on the date on which the notice is served.  

(12) This section shall apply to compensation for the compulsory acquisition of a right over land as it applies to compensation for the compulsory acquisition of an interest in land, and shall so apply with the necessary modifications and as if references to taking possession of the land were references to first entering it for the purpose of exercising the right. 

(13) . . . 

54 Effect of counter-notice under section 53 

(1) If the acquiring authority do not within the period of two months beginning with the date of service of a counter-notice under section 53 above agree in writing to accept the counter-notice as valid, the claimant or the authority may, within two months after the end of that period, refer it to the Lands Tribunal; and on any such reference the Tribunal shall determine whether the claim in the counter-notice is justified and declare the counter-notice valid or invalid in accordance with its determination of that question. 

(2) Where a counter-notice is accepted as, or declared to be, valid under subsection (1) above the acquiring authority shall be deemed—  

(a)   to be authorised to acquire compulsorily, under the enactment by virtue of      which they are empowered to acquire the land in respect of which the notice to treat was served, the claimant’s interest in the land to which the requirement in the counter-notice relates; and

(b)   to have served a notice to treat in respect of that land on the date on which the first-mentioned notice to treat was served. 

(3) A claimant may withdraw a counter-notice at any time before the compensation payable in respect of a compulsory acquisition in pursuance of the counter-notice has been determined by the Lands Tribunal or at any time before the end of six weeks beginning with the date on which the compensation is so determined; and where a counter-notice is withdrawn by virtue of this subsection any notice to treat deemed to have been served in consequence thereof shall be deemed to have been withdrawn. 

(4) Without prejudice to subsection (3) above, the power conferred by section 31 of the Land Compensation Act 1961 to withdraw a notice to treat shall not be exerciseable in the case of a notice to treat which is deemed to have been served by virtue of this section. 

(5) The compensation payable in respect of the acquisition of an interest in land in pursuance of a notice to treat deemed to have been served by virtue of this section shall be assessed on the assumptions mentioned in section 5(2), (3) and (4) above. 

(6) Where by virtue of this section the acquiring authority become, or will become, entitled to a lease of any land but not to the interest of the lessor— 

(a) the authority shall offer to surrender the lease to the lessor on such terms as the authority consider reasonable; 

(b) the question of what terms are reasonable may be referred to the Lands Tribunal by the authority or the lessor and, if at the expiration of three months after the date of the offer mentioned in paragraph (a) above, theauthority and the lessor have not agreed on that question and that question has not been referred to the Tribunal by the lessor, it shall be so referred by the authority; 

(c ) if that question is referred to the Tribunal the lessor shall be deemed to have accepted the surrender of the lease at the expiration of one month after the date of the determination of the Tribunal or on such other date as the Tribunal may direct and to have agreed with the authority on the terms of surrender which the Tribunal has held to be reasonable. 

For the purposes of this subsection any terms as to surrender contained in the lease shall be disregarded. 

(7) Where the lessor refuses to accept any sum payable to him by virtue of subsection (6) above, or refuses or fails to make out his title to the satisfaction of the acquiring authority, they may pay into court any sum payable to the lessor by virtue of that subsection; and subsections (2) and (5) of section 9 of the Compulsory Purchase Act 1965 (deposit of compensation in cases of refusal to convey etc) shall apply to that sum with the necessary modifications. 

(8) Where an acquiring authority who become entitled to the lease of any land as mentioned in subsection (6) above are a body incorporated by or under any enactment the corporate powers of the authority shall, if they would not otherwise do so, include power to farm that land. 

Acquisition Act 1981, section 4

(1)   In relation to a compulsory purchase the Land Compensation Act 1961 shall have effect subject to the provisions of this section. 

(2)   The Lands Tribunal shall not take into account any interest in land, or any enhancement of the value of any interest in land, by reason of any building erected, work done or improvement or alteration made, whether on the land purchased or on any other land with which the claimant is, or was at the time of the erection, doing or making of the building, works, improvement or alteration, directly or indirectly concerned, if the Lands Tribunal is satisfied that the creation of the interest, the erection of the building, the doing of the work, the making of the improvement or the alteration, as the case may be, was not reasonably necessary and was undertaken with a view to obtaining compensation or increased compensation.

 



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[1] The words “the special needs of a particular purchaser” were deleted by the Planning and Compensation Act 1991, Sch 15, para 1.

[2] “Authority possessing compulsory purchase powers” means “any person or body of persons who could be or have been authorised to acquire an interest in land compulsorily…”:           s 39(1).

[3] Section 8 provides for adjustment, on a subsequent acquisition of the adjacent land, of any allowance for increase or decrease in value made on the earlier acquisition.

[4] Subsections 14(5)-(8) were added  by the Planning and Compensation Act 1991, s 64, following the decision of the House of Lords in Margate Corp v Devotwill [1970] 3 AII ER 864: see App 5, para A.80 below.

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