Part I Determination of Questions of Disputed Compensation _cross-notes

1 [^F1Upper Tribunal to assess^F1] compensation in respect of land compulsorily acquired.

Where by or under any statute (whether passed before or after the passing of this Act) land is authorised to be acquired compulsorily, any question of disputed compensation and, where any part of the land to be acquired is subject to a lease which comprises land not acquired, any question as to the apportionment of the rent payable under the lease, shall be referred to the [^F2Upper Tribunal^F2] and shall be determined by the Tribunal in accordance with the following provisions of this Act.

^F32 Procedures on references under s. 1.

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^F43 Consolidation of proceedings on claims in respect of several interests in the same land.

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4 Costs. _cross-notes

[^F5 (A1)In any proceedings on a question referred to the Upper Tribunal under section 1 of this Act—

(a)the following subsections apply in addition to section 29 of the Tribunals, Courts and Enforcement Act 2007 (costs or expenses) and provisions in Tribunal Procedure Rules relating to costs; and

(b)to the extent that the following subsections conflict with that section or those provisions, that section or those provisions do not apply.^F5]

(1)Where either—

(a)the acquiring authority have made an unconditional offer in writing of any sum as compensation to any claimant and the sum awarded by the [^F6Upper Tribunal^F6] to that claimant does not exceed the sum offered; or

(b)the [^F6Upper Tribunal^F6] is satisfied that a claimant has failed to deliver to the acquiring authority, in time to enable them to make a proper offer, a notice in writing of the amount claimed by him, containing the particulars mentioned in subsection (2) of this section;

the [^F6Upper Tribunal^F6] shall, unless for special reasons it thinks proper not to do so, order the claimant to bear his own costs and to pay the costs of the acquiring authority so far as they were incurred after the offer was made or, as the case may be, after the time when in the opinion of the [^F6Upper Tribunal^F6] the notice should have been delivered.

(2)The notice mentioned in subsection (1) of this section must state the exact nature of the interest in respect of which compensation is claimed, and give details of the compensation claimed, distinguishing the amounts under separate heads and showing how the amount claimed under each head is calculated.

(3)Where a claimant has delivered a notice as required by paragraph (b) of subsection (1) of this section and has made an unconditional offer in writing to accept any sum as compensation, then, if the sum awarded to him by the [^F7Upper Tribunal^F7] is equal to or exceeds that sum, the [^F7Upper Tribunal^F7] shall, unless for special reasons it thinks proper not to do so, order the acquiring authority to bear their own costs and pay the costs of the claimant so far as they were incurred after his offer was made.

(4)The [^F8Upper Tribunal^F8] may in any case disallow the cost of counsel.

(5)Where the [^F9Upper Tribunal^F9] orders the claimant to pay the costs, or any part of the costs, of the acquiring authority, the acquiring authority may deduct the amount so payable by the claimant from the amount of the compensation payable to him.

^F10(6). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[^F114A Making a claim for compensation

(1)The appropriate national authority may by regulations impose further requirements about the notice mentioned in section 4(1)(b).

(2) In subsection (1) “ appropriate national authority ” means—

(a)in relation to a claim for compensation for the compulsory acquisition of land in England, the Secretary of State;

(b)in relation to a claim for compensation for the compulsory acquisition of land in Wales, the Welsh Ministers.

(3)Regulations under subsection (1) may make provision about—

(a)the form and content of the notice, and

(b)the time at which the notice must be given.

(4)Regulations under subsection (1) may permit or require a person specified in the regulations to design the form of the notice.

(5)Regulations under subsection (1) may require an acquiring authority to supply, at specified stages of the compulsory acquisition process, copies of a form to be used in giving the notice.

(6)Regulations under subsection (1) are to be made by statutory instrument.

(7)A statutory instrument containing regulations under subsection (1) is subject to annulment—

(a)in the case of an instrument made by the Secretary of State, in pursuance of a resolution of either House of Parliament;

(b)in the case of an instrument made by the Welsh Ministers, in pursuance of a resolution of the National Assembly for Wales.^F11]

Part II Provisions determining amount of compensation _cross-notes

General provisions

5 Rules for assessing compensation. _cross-notes

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:

[^F12 (2A)The value of land referred to in rule (2) is to be assessed in the light of the no-scheme principle set out in section 6A.^F12]

(3)^F13The 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 ... the requirements of any authority possessing compulsory purchase powers:

(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 [^F14Upper Tribunal^F14] 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.

[^F155A Relevant valuation date _cross-notes

(1)If the value of land is to be assessed in accordance with rule (2) in section 5, the valuation must be made as at the relevant valuation date.

(2)No adjustment is to be made to the valuation in respect of anything which happens after the relevant valuation date.

(3)If the land is the subject of a notice to treat, the relevant valuation date is the earlier of—

(a)the date when the acquiring authority enters on and takes possession of the land, and

(b)the date when the assessment is made.

(4)If the land is the subject of a general vesting declaration, the relevant valuation date is [^F16 , subject to subsection (4A),^F16] the earlier of—

(a)the vesting date, and

(b)the date when the assessment is made,

and “ general vesting declaration ” and “ vesting date ” have the meanings given in section 2 of the Compulsory Purchase (Vesting Declarations) Act 1981 .

[^F17 (4A)If an interest in land vests in accordance with an agreement under section 8A of that Act (postponement of vesting), the relevant valuation date in respect of that interest is the earlier of—

(a)the date on which it vests, and

(b)the date when the assessment is made.^F17]

(5)If the acquiring authority enters on and takes possession of part of the land—

(a)specified in a notice of entry, or

(b)in respect of which a payment into court has been made,

the authority is deemed, for the purposes of subsection (3)(a), to have entered on and taken possession of the whole of that land on that date.

[^F18 (5A)If—

(a) the acquiring authority enters on and takes possession of land in pursuance of a notice of entry given as mentioned in paragraph 12 of Schedule 2A to the Compulsory Purchase Act 1965 (“the original land”),

(b)the acquiring authority are subsequently required by a determination under paragraph 27 of Schedule 2A to the Compulsory Purchase Act 1965 to take additional land, and

(c)the acquiring authority enters on and takes possession of that additional land,

the authority is deemed for the purposes of subsection (3)(a) to have entered on and taken possession of the additional land when it entered on and took possession of the original land.^F18]

[^F19 (5B)If—

(a)the land is the subject of a general vesting declaration, and

(b)the vesting date is [^F20 , as a result of Schedule A1 to the Compulsory Purchase (Vesting Declarations) Act 1981 (counter-notices in respect of divided land),^F20] different for different parts of the land,

the first of the vesting dates is deemed for the purposes of subsection (4)(a) to be the vesting date for the whole of the land.^F19]

(6)[^F21 Subsections (5), (5A) and (5B) also apply^F21] for the purposes of calculating interest under the following enactments—

(a)section 11(1) of the Compulsory Purchase Act 1965;

^F22(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(c)section 85 of the Lands Clauses Consolidation Act 1845;

(d)section 52A of the Land Compensation Act 1973,

and references there to the date or time of entry are to be construed accordingly.

(7)An assessment by the [^F23 Upper Tribunal^F23] is treated as being made on the date certified by the Tribunal as—

(a)the last hearing date before it makes its determination, or

(b)in a case to be determined without an oral hearing, the last date for making written submissions before it makes its determination.

(8)Nothing in this section affects—

(a)any express provision in any other enactment which requires the valuation of land subject to compulsory acquisition to be made at a particular date;

(b)the valuation of land for purposes other than the compulsory acquisition of that land (even if the valuation is to be made in accordance with the rules in section 5).

(9)In this section—

(a)a notice of entry is a notice under section 11(1) of the Compulsory Purchase Act 1965;

(b)a payment into court is a payment into court ^F24... under section 85 of the Lands Clauses Consolidation Act 1845.^F15]

^F256 Disregard of actual or prospective development in certain cases.

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[^F256A No-scheme principle _cross-notes

(1)The no-scheme principle is to be applied when assessing the value of land in order to work out how much compensation should be paid by the acquiring authority for the compulsory acquisition of the land (see rule 2A in section 5).

(2)The no-scheme principle is the principle that—

(a)any increase in the value of land caused by the scheme for which the authority acquires the land, or by the prospect of that scheme, is to be disregarded, and

(b)any decrease in the value of land caused by that scheme or the prospect of that scheme is to be disregarded.

(3) In applying the no-scheme principle the following rules in particular (the “no-scheme rules”) are to be observed.

(4)Rule 1: it is to be assumed that the scheme was cancelled on the relevant valuation date.

(5)Rule 2: it is to be assumed that no action has been taken (including acquisition of any land, and any development or works) by the acquiring authority wholly or mainly for the purposes of the scheme.

(6)Rule 3: it is to be assumed that there is no prospect of the same scheme, or any other project to meet the same or substantially the same need, being carried out in the exercise of a statutory function or by the exercise of compulsory purchase powers.

(7)Rule 4: it is to be assumed that no other projects would have been carried out in the exercise of a statutory function or by the exercise of compulsory purchase powers if the scheme had been cancelled on the relevant valuation date.

(8)Rule 5: if there was a reduction in the value of land as a result of—

(a)the prospect of the scheme (including before the scheme or the compulsory acquisition in question was authorised), or

(b)the fact that the land was blighted land as a result of the scheme,

that reduction is to be disregarded.

(9)In this section—

• “ blighted land ” means land of a description listed in Schedule 13 to the Town and Country Planning Act 1990 ;

• “ relevant valuation date ” has the meaning given by section 5A.

(10)See also section 14 for assumptions to be made in respect of planning permission.

6B Lower compensation if other land gains value

(1)This section applies where—

(a) a person is entitled to compensation for the compulsory acquisition of land (the “original land”) for the purposes of a scheme,

(b) on the date the notice to treat is served in respect of the original land, the person is entitled to an interest in other land (the “other land”) which is contiguous or adjacent to the original land,

(c)the person is entitled to the interest in the other land in the same capacity as the person is entitled to the interest in the original land, and

(d)the person's interest in the other land has increased in value as a result of the scheme.

(2)The amount of compensation to which the person is entitled in respect of the compulsory acquisition of the original land is to be reduced by the amount of the increase in the value of the person's interest in the other land as at the relevant valuation date (determined in accordance with section 5A).

(3)An amount by which the other land increases in value may not be set off against compensation payable to the person (for the original land or otherwise) in accordance with subsection (2) more than once.

(4)If the other land is subsequently subject to compulsory acquisition for the purposes of the scheme mentioned in subsection (1), the compensation to which the person is entitled for the other land includes the amount which was deducted from the person's compensation for the original land in accordance with subsection (2) (despite the no-scheme principle).

(5)If part only of the other land is subject to compulsory acquisition, the compensation to which the person is entitled by virtue of subsection (4) is to be reduced accordingly.

(6) Subsections (4) and (5) apply in relation to a person (a “successor”) who derives title from the person mentioned in that subsection as if the original land had been acquired from the successor.

(7)This section does not apply in relation to compensation which is to be assessed in accordance with section 261 of the Highways Act 1980 (benefit to vendor to be taken into account in assessing compensation on certain compulsory acquisitions for highway purposes).

6C Increased compensation if other land loses value

(1)This section applies where—

(a) land (the “original land”) belonging to a person is acquired for the purposes of a scheme,

(b)as a result of the acquisition of the original land the person receives compensation for injurious affection in relation to other land, and

(c)the other land is subsequently subject to compulsory acquisition for the purposes of that scheme.

(2)The compensation to which the person is entitled as a result of the compulsory acquisition of the other land is to be reduced by the amount which the person received in compensation for injurious affection in relation to the other land as a result of the acquisition of the original land.

(3) Subsection (2) applies in relation to a person (a “successor”) who derives title from the person mentioned in that subsection as if the compensation for injurious affection had been paid to the successor.

6D Meaning of “scheme” etc.

(1) For the purposes of sections 6A, 6B and 6C, the “ scheme ” in relation to a compulsory acquisition means the scheme of development underlying the acquisition (subject to subsections (2) to (5)).

(2)Where the acquiring authority is authorised to acquire land in connection with the development of an area designated as—

(a)an urban development area by an order under section 134 of the Local Government, Planning and Land Act 1980,

(b)a new town by an order under section 1 of the New Towns Act 1981, or

(c)a Mayoral development area by a designation under section 197 of the Localism Act 2011,

the scheme is the development of any land for the purposes for which the area is or was designated.

(3)Where land is acquired for [^F26 development^F26] which is facilitated or made possible by a relevant transport project, the scheme includes the relevant transport project (subject to section 6E).

(4)For the purposes of subsection (3) and section 6E—

(a) a “ relevant transport project ” means a transport project carried out in the exercise of a statutory function or by the exercise of compulsory purchase powers (regardless of whether it is carried out before, after or at the same time as the [^F27 development for which the land is acquired ^F27] ), and

(b)where different parts of the works comprised in such a transport project are first opened for use on different dates, each part is to be treated as a separate relevant transport project.

(5) If there is a dispute as to what is to be taken to be the scheme (the “underlying scheme”) then, for the purposes of this section, the underlying scheme is to be identified by the Upper Tribunal as a question of fact, subject as follows—

(a)the underlying scheme is to be taken to be the scheme provided for by the Act, or other instrument, which authorises the compulsory acquisition unless it is shown (by either party) that the underlying scheme is a scheme larger than, but incorporating, the scheme provided for by that instrument, and

(b)except by agreement or in special circumstances, the Upper Tribunal may permit the acquiring authority to advance evidence of such a larger scheme only if that larger scheme is one identified in the following read together—

(i)the instrument which authorises the compulsory acquisition, and

(ii)any documents made available with it.

(6) In the application of no-scheme rule 3 in relation to the acquisition of land for or in connection with the construction of a highway (the “scheme highway”) the reference in that rule to “ any other project ” includes a reference to any other highway that would meet the same or substantially the same need as the scheme highway would have been constructed to meet.

[^F28 (7) In this section and section 6E, “ development ” includes re-development, regeneration and improvement. ^F28]

6E Further provisions in relation to relevant transport projects

(1)This section has effect for the purposes of section 6D(3).

(2)The scheme referred to in that section includes the relevant transport project only if—

(a)[^F29 the development of land in the vicinity of land comprised in the relevant transport project^F29] was part of the published justification for the relevant transport project,

(b)the works comprised in the relevant transport project are first opened for use after the period of 5 years beginning with 22nd September 2017,

(c)the instrument authorising the compulsory acquisition of the land which is acquired ^F30... was made or prepared in draft on or after 22nd September 2017,

(d)the compulsory acquisition of that land is authorised before the end of the period of 5 years beginning with the day on which the works comprised in the relevant transport project are first opened for use, and

(e)that land is in the vicinity of land comprised in the relevant transport project.

(3)In assessing compensation payable to a person in respect of the compulsory acquisition of that land, the scheme is to be treated as if it did not include the relevant transport project if the person acquired the land—

(a)after plans for the relevant transport project were announced, but

(b)before [^F31 the relevant date^F31] .

[^F32 (3A) The “relevant date” is—

(a)8 September 2016, in a case where the land is acquired for regeneration or redevelopment and regeneration or redevelopment was part of the published justification for the relevant transport project;

(b)in any other case, the first day after the period of three months beginning with the day on which section 188 of the Levelling-up and Regeneration Bill comes into force.^F32]

(4) Subsections (5) and (6) set out how subsection (2)(b) should be applied if a claim for compensation is made by a person (the “claimant”)—

(a)during the period of 5 years mentioned in that subsection, and

(b)before the works are first opened for use.

(5)Compensation is to be assessed on the basis that the works will first be opened for use after the period of 5 years unless the acquiring authority confirms that, in the authority's opinion, the works will first be opened during that period (in which case compensation is to be assessed on the basis that the works will first be opened for use during that period).

(6)If the basis on which compensation was assessed proves to be incorrect—

(a)the claimant's entitlement to any compensation which the claimant has already been awarded is not affected,

(b)the acquiring authority must give the claimant a notice informing the claimant that the basis on which the compensation was assessed was incorrect,

(c)the claimant may make a further claim for compensation in respect of the compulsory acquisition, and

(d)for the purposes of the Limitation Act 1980, the further claim for compensation accrues on the day the claimant receives the notice.^F25]

^F257 Effect of certain actual or prospective development of adjacent land in same ownership.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

^F258 Subsequent acquisition of adjacent land and acquisition governed by enactment corresponding to s. 7.

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^F259 Disregard of depreciation due to prospect of acquisition by authority possessing compulsory purchase powers.

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Special Cases

10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

^F3310A ^F34Expenses of owners not in occupation.

Where, in consequence of any compulsory acquisition of land—

(a)the acquiring authority acquire an interest of a person who is not then in occupation of the land; and

(b)that person incurs incidental charges or expenses in acquiring, within the period of one year beginning with the date of entry, an interest in other land in the United Kingdom,

the charges or expenses shall be taken into account in assessing his compensation as they would be taken into account if he were in occupation of the land.

11 Land of statutory undertakers. _cross-notes

In relation to compulsory acquisitions of interest in land which has been acquired by statutory undertakers (within the meaning of [^F35the Town and Country Planning Act 1971^F35] ) for the purposes of their undertaking, the provisions of this Act shall have effect subject to the provisions of subsection (5) of section forty-five of that Act (which makes special provision as to the compensation payable in respect of certain acquisitions of land so acquired).

12 Outstanding right to compensation for refusal etc. of planning permission. _cross-notes

(1)^M1Where, in the case of any compulsory acquisition, a planning decision or order has been made before the service of the notice to treat, and in consequence of the decision or order any person is entitled (subject to the making and determination of a claim in accordance with the relevant provisions, and to the effect of any direction by the Minister under section twenty-three or section forty-five of the Town and Country Planning Act 1954) to compensation for depreciation of the value of an interest in land which consists of or includes the whole or part of the relevant land, then if—

(a)no notice stating that the compensation has become payable has been registered before the date of service of the notice to treat (whether or not a claim for compensation has been made); but

(b)such a notice is registered on or after that date;

the compensation payable in respect of the compulsory acquisition shall be assessed as if the said notice had been registered before the date of service of the notice to treat and had remained on the register of local land charges on that date.

(2)In this section any reference to compensation for depreciation of the value of an interest in land is a reference to compensation payable either—

(a)^M2under Part II or Part V of the Town and Country Planning Act 1954, in respect of depreciation of the value of that interest, or

(b)^M3under subsection (1) of section twenty-two of the Town and Country Planning Act 1947, in respect of loss or damage consisting of depreciation of the value of that interest;

any reference to registration is a reference to registration in the register of local land charges under subsection (5) of section twenty-eight of the Act of 1954, or under the provisions of that subsection as applied by section thirty-nine or section forty-six of that Act; and “ the relevant provisions ”, in relation to compensation under the said Part II or the said Part V, means the provisions of the said Part II, or those provisions as applied by the said Part V, and, in relation to compensation under the said subsection (1), means the provisions of regulations made under the said Act of 1947 with respect to claims for compensation under that subsection.

13 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . _cross-notes

^F36 Assumptions as to planning permission

[^F3714 Taking account of actual or prospective planning permission.

(1)This section is about assessing the value of land in accordance with rule (2) in section 5 for the purpose of assessing compensation in respect of a compulsory acquisition of an interest in land.

(2)In consequence of that rule, account may be taken—

(a)of planning permission, whether for development on the relevant land or other land, if it is in force at the relevant valuation date, and

[^F38 (b)of the prospect of planning permission being granted on or after that date for development, whether on the relevant land or other land, other than development for which planning permission is in force at the relevant valuation date.^F38]

[^F39 (2A)If a description of development is certified under section 17 as appropriate alternative development in relation to the relevant land (or any part of it), it is to be taken as certain for the purposes of subsection (2)(b) that—

(a)planning permission for development of that description would be (or would have been) granted on the relevant valuation date, and

(b)the permission would be (or would have been) granted in accordance with any indication given under section 17(5B).

(2B)In relation to any other development, the prospects of planning permission are to be assessed for the purposes of subsection (2)(b)—

(a)on the assumptions set out in subsection (5), and

(b)otherwise, in the circumstances known to the market at the relevant valuation date.^F39]

(5)The assumptions referred to in [^F40 subsection (2B)(a) (and in section 17(1B)(a))^F40] are—

(a)that the scheme of development underlying the acquisition had been cancelled on the launch date,

(b)that no action has been taken (including acquisition of any land, and any development or works) by the acquiring authority wholly or mainly for the purposes of the scheme,

(c)that there is no prospect of the same scheme, or any other project to meet the same or substantially the same need, being carried out in the exercise of a statutory function or by the exercise of compulsory purchase powers, and

(d) if the scheme was for use of the relevant land for or in connection with the construction of a highway (“the scheme highway”), that no highway will be constructed to meet the same or substantially the same need as the scheme highway would have been constructed to meet.

(6) In subsection (5)(a) “ the launch date ” means whichever of the following dates applies—

(a)if the acquisition is authorised by a compulsory purchase order, the date of first publication of the notice required under section 11 of the Acquisition of Land Act 1981 or (as the case may be) paragraph 2 of Schedule 1 to that Act,

(b)if the acquisition is authorised by any other order—

(i)the date of first publication, or

(ii)the date of service,

of the first notice that, in connection with the acquisition, is published or served in accordance with any provision of or made under any Act, or

(c)if the acquisition is authorised by a special enactment other than an order, the date of first publication of the first notice that, in connection with the acquisition, is published in accordance with any Standing Order of either House of Parliament relating to private bills;

and in paragraph (a) “ compulsory purchase order ” has the same meaning as in the Acquisition of Land Act 1981 .

(7)In subsection (5)(d) references to the construction of a highway include its alteration or improvement.

(8) If there is a dispute as to what is to be taken to be the scheme mentioned in subsection (5) (“ the underlying scheme ”) then, for the purposes of this section, the underlying scheme is to be identified by the Upper Tribunal as a question of fact, subject as follows—

(a)the underlying scheme is to be taken to be the scheme provided for by the Act, or other instrument, which authorises the compulsory acquisition unless it is shown (by either party) that the underlying scheme is a scheme larger than, but incorporating, the scheme provided for by that instrument, and

(b)except by agreement or in special circumstances, the Upper Tribunal may permit the acquiring authority to advance evidence of such a larger scheme only if that larger scheme is one identified in the following read together—

(i)the instrument which authorises the compulsory acquisition, and

(ii)any documents published with it.

(9)For the purposes of the references [^F41 in subsection (2) to planning permission that is in force^F41] , it is immaterial whether any planning permission was granted—

(a)unconditionally or subject to conditions, or

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

or is planning permission that, in accordance with any direction or provision given or made by or under any enactment, is deemed to have been granted.^F37]

[^F4214A Cases where prospect of planning permission to be ignored

(1)The following provisions apply in relation to an acquisition if the compulsory purchase order authorising the acquisition directs that compensation is to be assessed in accordance with this section.

(2)Section 14 does not apply.

(3)In assessing the value of land in accordance with rule (2) in section 5, it is to be assumed that no planning permission would be granted for development on the relevant land (whether alone or together with other land).

(4)Subsection (3) does not prevent account being taken of planning permission that has already been granted.

(5)Subsection (3) does not apply in relation to development consisting of the use as two or more separate dwellings of any building previously used as a single dwelling.

(6)Schedule 2A provides for the payment of additional compensation in respect of the acquisition in certain circumstances.^F42]

^F4315 Planning permission to be assumed for acquiring authority's proposals

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

^F3716 Special assumptions in respect of certain land comprised in development plans.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Part III Certification by Planning Authorities of Appropriate Alternative Development

[^F4417 Certificates 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)) apply to the local planning authority for a certificate [^F45 stating that a certain description of development is appropriate alternative development in relation to the acquisition^F45] .

[^F46 (1A) Development is “ appropriate alternative development ” for this purpose if it is development—

(a)on the land in which the interest referred to in subsection (1) subsists (whether alone or together with other land),

(b)for which planning permission is not in force at the relevant planning date, and

(c)in respect of which the following test is met.

(1B)The test is whether, had an application for planning permission for the development been determined on the relevant planning date, the local planning authority would have been more likely than not to grant the permission—

(a)on the assumptions set out in section 14(5),

(b)on the assumption that it would act lawfully, and

(c)otherwise, in the circumstances known to the market at the relevant planning date.

(1C) For the purposes of subsections (1A) and (1B), the “relevant planning date” is—

(a)the relevant valuation date, or

(b)if earlier, the date on which the application under this section is determined.^F46]

(2)If—

(a)the acquiring authority have served a notice to treat in respect of the interest or an agreement has been made for the sale of the interest to that authority, and

(b)a reference has been made to the Upper Tribunal to determine the amount of the compensation payable in respect of the interest,

no application for a certificate under this section may be made after the making of that reference by either of the parties directly concerned except with the consent in writing of the other party directly concerned or the permission of the Upper Tribunal.

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

[^F47 (ba)must set out the applicant’s reasons for considering that the description of development given in the application is appropriate alternative development, and^F47]

(c)must 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 must not, without the agreement of the other party directly concerned, issue a certificate to the applicant before the end of 22 days beginning with the date specified in the statement under subsection (3)(c).

[^F48 (5A)The local planning authority may issue a certificate under this section in respect of—

(a)the description of development given in the application for the certificate, or

(b)a description of development less extensive than, but otherwise falling within, the description given in the application.

(5B)A certificate under this section must give a general indication of—

(a)any conditions to which planning permission for the development would have been subject, and

(b)any pre-condition for granting the permission (for example, entry into an obligation) that would have had to be met.

(5C)The test to be applied for the purposes of subsection (5B) is whether the local planning authority would have been more likely than not to impose such conditions, or insist on such a pre-condition, on the assumptions, and otherwise in the circumstances, referred to in subsection (1B).^F48]

(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 must serve a copy of the certificate on the other of those parties.

(10)In assessing any compensation payable to any person in respect of any compulsory acquisition, [^F49 no account is to be taken of any expenses^F49] incurred by the person in connection with the issue of a certificate under this section (including expenses incurred in connection with an appeal under section 18 ^F50...).

(11) For the purposes of this section and sections 18 to 20, the Broads Authority is the sole district planning authority for the Broads; and here “ the Broads ” has the same meaning as in the Norfolk and Suffolk Broads Act 1988 . ^F44]

[^F5118 Appeal to Upper Tribunal against certificate under section 17

(1)Where the local planning authority have issued a certificate under section 17 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, or is, acquired,

may appeal to the Upper Tribunal against that certificate.

(2)On any appeal under this section against a certificate, the Upper Tribunal—

(a)must consider the matters to which the certificate relates as if the application for a certificate under section 17 had been made to the Upper Tribunal in the first place,

[^F52 (aa)must consider those matters as if, in subsections (1B) and (5C), the references to the local planning authority were references to a reasonable planning authority,^F52] and

(b)must—

(i)confirm the certificate, or

(ii)vary it, or

[^F53 (iia)cancel it, or^F53]

(iii)cancel it and issue a different certificate in its place,

as the Upper Tribunal may consider appropriate.

[^F54 (2A)Where the local planning authority have rejected an application for a certificate under section 17, the person who applied for the certificate may appeal to the Upper Tribunal against the rejection.

(2B)On an appeal under subsection (2A)—

(a)paragraphs (a) and (aa) of subsection (2) apply as on an appeal under subsection (1), and,

(b)the Upper Tribunal must—

(i)confirm the rejection, or

(ii)issue a certificate,

as the Upper Tribunal may consider appropriate.^F54]

(3)Where an application is made for a certificate under section 17, and at the expiry of the time prescribed by a development order for the issue of the certificate (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, [^F55 subsection (2A) applies as if the local planning authority have rejected the application^F55] .

[^F56 (4)The references in sections 14(2A) and 17(5A) and (5B) to a certificate under section 17 include a certificate issued, or as varied, by the Upper Tribunal under this section.^F56,F51]]

19 Extension of ss. 17 and 18 to special cases. _cross-notes

(1)^M4 Where an interest in land is proposed to be acquired [^F57 by an authority possessing compulsory purchase powers^F57] , and, by reason that the person entitled to the interest is absent from the United Kingdom or cannot be found, the compensation payable in respect of the interest falls to be determined by the valuation of a surveyor under section fifty-eight of the Lands Clauses Consolidation Act 1845, the surveyor, before carrying out his valuation, may apply to the local planning authority for a certificate under the said section seventeen; and the provisions of that section and of section eighteen of this Act shall apply in relation to an application made by virtue of this subsection as they apply in relation to an application made by virtue of subsection (1) of the said section seventeen.

(2)Where, in pursuance of an application made by virtue of subsection (1) of this section, the local planning authority issue a certificate to the surveyor, the authority shall serve copies of the certificate on both the parties directly concerned.

(3)An application for a certificate made by virtue of subsection (1) of this section shall specify the matters referred to in [^F58paragraph (ba)^F58] of subsection (3) of the said section seventeen, and shall be accompanied by a statement specifying the date on which a copy of the application has been or will be served on each of the parties directly concerned; and, in relation to such an application, subsection (4) of that section shall have effect with the substitution, for the reference to the date specified in the statement mentioned in [^F59paragraph (c)^F59] of the said subsection (3), of a reference to the date specified in accordance with this subsection, or, where more than one date is so specified, the later of those dates.

[^F60 (4)In the application of section 18 by virtue of subsection (1)—

(a)subsection (1)(a) of that section is to be read as if it included the surveyor, and

(b)subsection (2A) of that section is to be read as if the reference to the person who applied for the certificate included the person entitled to the interest.^F60]

20 Power to prescribe matters relevant to Part III.

^F61,F62 The provisions which may be made by a development order shall include provision for regulating the manner in which applications under section seventeen or nineteen of this Act ... are to be made and dealt with ..., and in particular—

(a)for prescribing (subject to the provisions of subsection (4) of section seventeen of this Act) the [^F63period within which an application under that section is to be determined^F63] ;

^F64(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(c)for requiring local planning authorities to furnish the Minister, and such other persons (if any) as may be prescribed by or under the order, with such information as may be so prescribed with respect to applications under the said section seventeen or the said section nineteen, including information whether any such application has been made in respect of any particular land and information as to the manner in which any such application has been dealt with, together, in such cases as may be so prescribed, with copies of certificates issued under the said section seventeen;

^F65(d). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

^F6621 Proceedings for challenging validity of decision on appeal under s. 18.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

22 Interpretation of Part III. _cross-notes

(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 [^F67 acquiring authority ^F67] .

(2)For the purposes of sections seventeen [^F68to nineteen^F68] 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 purposes 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.

[^F69 (2A)The completion of the acquisition or purchase referred to in the applicable paragraph of subsection (2) does not affect the continued application of that subsection.^F69]

^F70(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

^F71Part IV Compensation where Permission for Additional Development Granted after Acquisition

^F71 23 Compensation where planning decision made after acquisition.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

^F7124 Provisions as to claims under section 23.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

^F7125 Extension to planning permission where no planning decision made.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

^F7126 Extension to Crown development.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

^F7127 Application of Part IV to certain cases.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

^F7128 Regulations for purposes of Part IV.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

^F7129 Interpretation of Part IV.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Part V Miscellaneous and General

30 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

^F7231 Withdrawal of notices to treat. _cross-notes

(1)Where a claimant has delivered such a notice as is mentioned in paragraph (b) of subsection (1) of section four of this Act, the acquiring authority may, at any time within six weeks after the delivery thereof, withdraw any notice to treat which has been served on him or on any other person interested in the land authorised to be acquired.

(2)Where a claimant has failed to deliver a notice as required by the said paragraph (b), the acquiring authority may, at any time after the decision of the [^F73Upper Tribunal^F73] on his claim but not later than six weeks after the claim has been finally determined, withdraw any notice to treat which has been served on him or on any other person interested in the land authorised to be acquired, unless the authority have entered into possession of the land by virtue of the notice.

(3)Where the acquiring authority withdraw a notice to treat under this section, the authority shall be liable to pay compensation to the person to whom it was given for any loss or expenses occasioned to him by the giving and withdrawal of the notice, but if the notice is withdrawn under subsection (2) of this section not for any loss or expenses incurred by the claimant mentioned therein after the time when, in the opinion of the [^F74Upper Tribunal^F74] , a proper notice of claim should have been delivered by him.

[^F75 (3A)Where the acquiring authority withdraw a notice to treat under this section, the authority shall also be liable to pay a person compensation for any loss or expenses occasioned by the person as a result of the giving and withdrawal of the notice to treat if the person—

(a)acquired the interest to which the notice to treat relates before its withdrawal, and

(b)has not subsequently been given a notice to treat in relation to that interest.^F75]

(4)The amount of any compensation payable under subsection (3) [^F76or (3A)^F76] of this section shall, in default of agreement, be determined by the [^F77Upper Tribunal^F77] .

(5)So long as the acquiring authority are entitled to withdraw a notice to treat under subsection (2) of this section, the authority shall not be compellable to take the land to which the notice relates or to pay any compensation awarded in respect of the taking.

(6)For the purposes of this section, a claim shall not be deemed to be finally determined so long as the time for requiring the [^F78Upper Tribunal^F78] to state a case with respect thereto, or for appealing from any decision on the points raised by a case so stated, has not expired.

32 Rate of interest after entry on land. _{cross-notes P1,P2}

(1)^M5The rate of interest on any compensation in respect of the compulsory acquisition of an interest in any land on which entry has been made before the payment of the compensation shall (instead of being the rate of five per cent. specified under section eighty-five of the Lands Clauses Consolidation Act 1845) be such rate as may from time to time be prescribed by regulations made by the Treasury.

(2)Any such regulations shall be made by statutory instrument, which shall be subject to annulment in pursuance of a resolution of either House of Parliament.

[^F79 (3)This section does not apply in relation to additional compensation payable under Schedule 2A.^F79]

33 Application of Act to Crown.

This Act applies in relation to the acquisition of interests in land (whether compulsorily or by agreement) by government departments, being authorities possessing compulsory purchase powers, as it applies in relation to the acquisition of interests in land by such authorities which are not government departments.

34 Special provision as to ecclesiastical property in England.

(1)[^F80 Where ecclesiastical property in England is vested in the incumbent of a benefice which is vacant it shall be treated for the purposes of this Act as being vested in the Diocesan Board of Finance for the diocese in which the land is situated.^F80]

(2) In this section “ ecclesiastical property ” means land belonging to any ecclesiastical benefice [^F81 of the Church of England ^F81] , or being or forming part of a church subject to the jurisdiction of a bishop of any diocese [^F81 of the Church of England ^F81] or the site of such a church, or being or forming part of a burial ground subject to such jurisdiction.

35 Certificates of value.

The [^F82Upper Tribunal^F82] may on the application of any person certify the value of land being sold by him to an authority possessing compulsory purchase powers, and the sale of the land to that authority at the price so certified shall be deemed to be a sale at the best price that can reasonably be obtained.

36 Saving for certain statutory purchases of statutory undertakings.

(1)Nothing in this Act shall apply to any purchase of the whole or any part of any statutory undertaking under any enactment in that behalf prescribing the terms on which the purchase is to be effected.

(2) In this section, “ statutory undertaking ” means an undertaking established by an enactment.

37 Local inquiries.

The Minister may cause a local inquiry to be held for the purpose of the exercise of any of his functions under this Act; and the provisions of subsections (2) to (5) of [^F83section 250 of the ^M6Local Government Act 1972^F83] (which relate to the giving of evidence at, and defraying the cost of, local inquiries) shall have effect with respect to any such inquiry.

38 Services of notices. _cross-notes

(1)^F84Subject to the provisions of this section, any notice or other document required or authorised to be served or given under Part III ... of this Act may be served or given either—

(a)by delivering it to the person on whom it is to be served or to whom it is to be given; or

(b)by leaving it at the usual or last known place of abode of that person, or, in a case in which an address for service has been furnished by that person, at that address; or

(c)by sending it in a pre-paid registered letter addressed to that person at his usual or last known place of abode, or, in a case in which an address for service has been furnished by that person, at that address; or

(d)in the case of an incorporated company or body, by delivering it to the secretary or clerk of the company or body at their registered or principal office, or sending it in a pre-paid registered letter addressed to the secretary or clerk of the company or body at that office.

(2)Where the notice or document is required or authorised to be served on any person as having an interest in premises, and the name of that person cannot be ascertained after reasonable inquiry, the notice shall be deemed to be duly served if—

(a) being addressed to him either by name or by the description of “the owner” of the premises (describing them) it is delivered or sent in the manner mentioned in paragraph (a), (b) or (c) of subsection (1) of this section; or

(b)being addressed as aforesaid and marked in the manner for the time being prescribed by regulations under [^F85the ^M7Town and Country Planning Act 1971^F85] , for securing that notices thereunder are plainly identifiable as a communication of importance, it is sent in a pre-paid registered letter to the premises and is not returned to the authority sending it, or is delivered to some person on those premises or is affixed conspicuously to some object on those premises.

39 Interpretation. _cross-notes

(1)In this Act, except where the context otherwise requires,—

• “ acquiring authority ”, in relation to an interest in land, means the person or body of persons by whom the interest is, or is proposed to be, acquired;

• “authority possessing compulsory purchase powers”, where it occurs otherwise than in relation to a transaction, means any person or body of persons who could be or have been authorised to acquire an interest in land compulsorily, and, in relation to any transaction, means any person or body of persons who could be or have been so authorised for the purposes for which the transaction is or was effected or a parish council [^F86 community council ^F86] or parish meeting on whose behalf [^F86 district council ^F86][^F87 , county council or county borough council ^F87] could be or have been so authorised;

• “ building ” includes any structure or erection and any part of a building as so defined, but does not include plant or machinery comprised in a building;

• ^F88 “ the current development plan ”, in relation to any land, means a development plan comprising that land, in the form in which (whether as originally approved or made . . . or as for the time being amended) that plan is in force on the date of service of the notice to treat;

• “ development ” has the meaning assigned to it by [^F89 section 22 of the ^M8 Town and Country Planning Act 1971 ^F89] , and “ develop ” shall be construed accordingly;

• “ development order ” means an order under subsection (1) of [^F89 section 24 of the Town and Country Planning Act 1971 ^F89] ;

• ^M9 “ development plan ” has the meaning assigned to it by section five of the Town and Country Planning Act 1947 , and includes a plan made under subsection (5) of that section;

• “ enactment ” includes an enactment in any local or private Act of Parliament and an order, rule, regulation, byelaw or scheme made under an Act of Parliament.

• “ land ” means any corporeal hereditament, including a building as defined by this section, and includes any interest or right in or over land and any right to water;

• “ local enactment ” means any local or private Act, or an order confirmed by Parliament or brought into operation in accordance with special parliamentary procedure;

• [^F90 “ local planning authority ” shall be construed in accordance with Part I of the Town and Country Planning Act 1990 ; ^F90]

• “ the Minister ” means [^F91 the Secretary of State ^F91] ;

• “ outline application ” means an application for planning permission subject to subsequent approval on any matters;

• “ planning decision ” means a decision made on an application under [^F89 Part III of the Town and Country Planning Act 1971 ^F89] ;

• “ planning permission ” means permission under [^F89 Part III of the Town and Country Planning Act 1971 ^F89] ;

• “ special enactment ” means a local enactment, or a provision contained in an Act other than a local or private Act, being a local enactment or provision authorising the compulsory acquisition of land specifically identified therein;

• ^M10 “ tenancy ” has the same meaning as in the Landlord and Tenant Act 1954 .

(2) In this Act, in relation to a compulsory acquisition in pursuance of a notice to treat, “ the relevant interest ” means the interest acquired in pursuance of that notice, “ the relevant land ” means the land in which the relevant interest subsists, and “ the notice to treat ” means the notice to treat in pursuance of which the relevant interest is acquired.

(3)As respects references in this Act to planning decisions—

(a)in relation to a decision altered on appeal by the reversal or variation of the whole or any part thereof, such references shall be construed as references to the decision as so altered;

(b)in relation to a decision upheld on appeal, such references shall be construed as references to the decision of the local planning authority and not to the decision of the Minister on the appeal;

(c)in relation to a decision given on an appeal made by virtue of [^F89section 37 of the ^M11Town and Country Planning Act 1971^F89] , in default of a decision by the local planning authority, such references shall be construed as references to the decision so given;

(d)the time of a planning decision, in a case where there is or was an appeal, shall be taken to be or have been the time of the decision as made by the local planning authority, whether or not that decision is or was altered as aforesaid on that appeal, or, in the case of such a decision as is mentioned in paragraph (c) of this subsection, the time when by virtue of [^F89section 37 of the Town and Country Planning Act 1971^F89] , the notification of a decision by the local planning authority is deemed to have been given.

(4)References in this Act to a contract are references to a contract in writing or a contract attested by a memorandum or note thereof in writing, signed by the parties thereto or by some other person or persons authorised by them in that behalf, and, in relation to an interest in land conveyed or assigned without a preliminary contract, are references to the conveyance or assignment; and references to the making of a contract are references to the execution thereof or (if it was not in writing) to the signature of the memorandum or note by which it was attested.

(5)References in this Act—

(a)to a person from whom title is derived by another person include references to any predecessor in title of that other person;

(b)to a person deriving title from another person include references to any successor in title of that other person;

(c)to deriving title are references to deriving title either directly or indirectly.

(6)For the purposes of this Act, 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.

(7)For the purposes of this Act development of land shall be taken to be initiated—

(a)if the development consists of the carrying out of operations, at the time when those operations are begun;

(b)if the development consists of a change in use, at the time when the new use is instituted;

(c)if the development consists both of the carrying out of operations and of a change in use, at the earlier of the times mentioned in the preceding paragraphs.

(8)References in this Act to a notice to treat include references to a notice to treat which, under any enactment, is deemed to have been served, and references to the service of such a notice and to the date of service shall be construed accordingly.

(9)References in this Act to any enactment shall be construed as references to that enactment as amended by or under any other enactment.

40 †Consequential amendments, repeals, and transitional provisions. _cross-notes

(1)Any enactment or document referring to an enactment repealed by this Act shall be construed as referring to the corresponding enactment in this Act.

(2)Without prejudice to the generality of subsection (1) of this section—

(a)^M12any enactment excluding the power conferred by subsection (2) of section five of the Acquisition of Land (Assessment of Compensation) Act 1919, to withdraw notices to treat shall be construed as excluding any such power conferred by section thirty-one of this Act; and

(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

^F92(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

^F93(4)The mention of particular matters in this section shall not be taken to affect the general application to this Act of [^F94sections 16(1) and 17(2)(a) of the ^M13Interpretation Act 1978^F94] (which relates to the effect of repeals).

(5). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

^F9541 Saving for transactions before commencement of Act.

^F96This Act (including the amendments and repeals made by it) shall not have effect in relation to any compulsory acquisition in pursuance of a notice to treat served before the commencement of this Act . . . ; nor in relation to any sale of an interest in land by agreement in pursuance of a contract made before the commencement of this Act.

42 Short title, commencement and extent.

(1)This Act may be cited as the Land Compensation Act 1961.

(2)This Act shall come into operation on the first day of August, nineteen hundred and sixty-one.

(3)This Act does not extend to Scotland or Northern Ireland.

SCHEDULES

Sections 6, 7

^F97FIRST SCHEDULE Actual or Prospective Development relevant for purposes of Sections 6 & 7

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

SECOND SCHEDULE . . .

^F98 Section 14A (6)

[^F99Schedule 2A Additional compensation where section 14A applied

Directions for additional compensation

1(1)This paragraph applies if—

(a)an interest in land has been acquired further to a compulsory purchase order, and

(b)the order directed that compensation was to be assessed in accordance with section 14A.

(2)The confirming authority must, on an application by an eligible person, make a direction for additional compensation if it appears to the confirming authority that the following conditions are met.

(3)Those conditions are—

(a)that the statement of commitments has not been fulfilled,

(b)either—

(i)that the period of 10 years beginning with the date on which the compulsory purchase order became operative has expired, or

(ii)that there is no longer any realistic prospect of the statement of commitments being fulfilled within that period, and

(c)that the initial direction would not have been confirmed on the basis of a statement of commitments reflecting what has in fact been done with the project land since its acquisition.

(4)In sub-paragraph (3)—

• “ the statement of commitments ” means the statement of commitments submitted in connection with the compulsory purchase order under section 15A (3) of the Acquisition of Land Act 1981 (and if the statement was amended after its submission, means the statement as amended);

• “ the initial direction ” means the direction referred to in sub-paragraph (1) (b) (and that direction was “confirmed” when the compulsory purchase order was confirmed with the inclusion of the direction);

• “ the project land ” means the land treated as the project land for the purposes of the statement of commitments;

and that statement is “fulfilled” if what is done with that land after its acquisition is materially in accordance with the statement.

(5)The effect of a direction for additional compensation is that each eligible person may make a claim to the acquiring authority for any additional compensation in respect of the acquisition payable to the person under this Schedule.

(6) A person is an “ eligible person ” for the purposes of this Schedule if the person was entitled to compensation in respect of the acquisition (and see also paragraph 4 (1) ).

Amount of additional compensation

2(1)Additional compensation in respect of an acquisition is payable to an eligible person only if, in relation to that person, the alternative amount is greater than the original amount.

(2)The amount payable is the difference between the two amounts.

(3) The “original amount” is the amount of compensation awarded or agreed to be paid to the person in respect of the acquisition.

(4) The “alternative amount” is the amount of compensation that would have been assessed as due to the person in respect of the acquisition had compensation been assessed without the application of section 14A .

(5)If the original amount was agreed, the relevant valuation date for the purposes of the assessment imagined under sub-paragraph (4) is the date on which the agreement was concluded.

(6)In relation to the determination of an amount of additional compensation under this Schedule, section 17(2)(b) applies as if its reference to the amount of compensation were to the amount of additional compensation.

(7)A certificate issued under section 17 (or 18) after the award or agreement referred to in sub-paragraph (3) is to have effect for the purposes of the assessment imagined under sub-paragraph (4) as if it had been issued before that assessment.

(8)Any amount of compensation that is or would be attributable to disturbance, severance or injurious affection is to be ignored for the purposes of sub-paragraphs (3) and (4).

Time limit for application for direction

3An application under paragraph 1(2) may not be made after the expiry of the period of 13 years beginning with the date on which the compulsory purchase order became operative.

Mortgages

4 (1) For the purposes of this Schedule an “ eligible person ” includes a person who would have been entitled to compensation in respect of the acquisition but for the existence of a mortgage (but the mortgage is in that case still to be taken into account in determining the original and alternative amounts under paragraph 2 ).

(2)An amount agreed or awarded to be paid to a mortgagee under section 15 or 16 of the Compulsory Purchase Act 1965 in respect of the acquisition is to be treated for the purposes of this Schedule as compensation in respect of the acquisition.

(3) The reference in sub-paragraph (2) to an amount paid under section 15 or 16 of the Compulsory Purchase Act 1965 (“the applicable section”) includes an amount paid under section 52ZA or 52ZB of the Land Compensation Act 1973 and taken into account by virtue of section 52ZC(7)(d) of that Act for the purposes of the applicable section.

(4)Additional compensation payable under this Schedule to a person in the person’s capacity as a mortgagee (or to a person exercising rights of a mortgagee) is to be applied towards the discharge of the sums secured by the mortgage.

(5)If there is no remaining sum secured by the mortgage, the additional compensation that would be payable as described in sub-paragraph (4) is instead payable to the person who is an eligible person by virtue of the interest that was subject to the mortgage.

(6)If the additional compensation that would be payable as described in sub-paragraph (4) exceeds the total of the remaining sums secured by the mortgage, the amount of the excess is instead payable to the person who is an eligible person by virtue of the interest that was subject to the mortgage.

Successors-in-title

5(1)This paragraph applies if, had the compensation to which an eligible person was entitled in respect of the acquisition remained unpaid, the right to be paid it would now vest in some other person (assuming that it remained enforceable and any obligations in respect of the right had been complied with).

(2)If the eligible person is still alive or in existence, the rights that the eligible person would have under this Schedule are exercisable by the other person and not by the eligible person.

(3)If the eligible person is no longer alive or in existence, the rights that the eligible person would have under this Schedule if that person were still alive or in existence are exercisable by the other person.

(4)The right exercisable by the other person under sub-paragraph (2) or (3) is subject to any restriction, condition or other incident to which the right vested in that person as imagined under sub-paragraph (1) would be subject.

(5)Additional compensation paid to the other person by virtue of sub-paragraph (2) or (3) must be dealt with by the person in any way in which the person would have to deal with compensation paid to that person further to the right vested in that person as imagined under sub-paragraph (1).

(6)If a person is an eligible person by virtue of paragraph 4(1), the reference in sub-paragraph (1) to compensation to which the person was entitled is to be read as a reference to the compensation to which the person would have been entitled but for the mortgage.

Consequential losses

6(1)The relevant authority may by regulations provide for additional compensation payable on a claim under paragraph 1(5) to include (in addition to any amount payable under paragraph 2) an amount to make good qualifying losses.

(2)“Qualifying losses” are financial losses shown to have been suffered by an eligible person, or a person entitled to exercise the rights of the eligible person under paragraph 5, as a result of the compensation initially payable to the eligible person in respect of the acquisition being of the original amount rather than the alternative amount.

(3)In the case of an eligible person who is so by virtue of an interest that was subject to a mortgage, the reference in sub-paragraph (2) to compensation payable to the eligible person is to be taken to include compensation payable to the mortgagee of that interest.

(4)Regulations under this paragraph may limit the qualifying losses in respect of which additional compensation is payable under the regulations by reference to—

(a)a description of loss,

(b)an amount, or

(c)any other circumstance.

Procedure etc

7(1)The relevant authority may by regulations make provision—

(a)about the procedure for applications under paragraph 1(2) or claims under paragraph 1(5) (including provision about the costs of such applications or claims);

(b)about steps that must be taken by the acquiring authority or the confirming authority for the purposes of publicising or giving notice of a direction for additional compensation;

(c)for interest to be applied to amounts of additional compensation that are payable;

(d)about how or when additional compensation (and any interest) is to be paid.

(2)Regulations under this paragraph about costs of claims under paragraph 1(5)—

(a)may modify or disapply section 29 of the Tribunals, Courts and Enforcement Act 2007 (costs or expenses) or provisions in Tribunal Procedure Rules relating to costs;

(b)may apply (with or without modifications) section 4 of this Act;

and section 4 of this Act does not apply in relation to such a claim unless so applied.

Regulations

8 (1) For the purposes of this Schedule “the relevant authority” is—

(a)the Secretary of State, in relation to England;

(b)the Welsh Ministers, in relation to Wales.

(2)Regulations under this Schedule may make—

(a)consequential, supplementary, incidental, transitional or saving provision;

(b)different provision for different purposes.

(3)Regulations under this Schedule are to be made by statutory instrument.

(4)A statutory instrument containing such regulations is subject to annulment in pursuance of—

(a)a resolution of either House of Parliament, in the case of regulations made by the Secretary of State, or

(b)a resolution of Senedd Cymru, in the case of regulations made by the Welsh Ministers.

Interpretation

9(1)In this Schedule—

(a) “ the confirming authority ” means—

(i)the person who confirmed the compulsory purchase order, or

(ii)any successor to that person’s function of confirming compulsory purchase orders of the type in question;

(b) references to “the acquisition” or “the compulsory purchase order” are to the acquisition or order by virtue of which paragraph 1 applies;

(c)references to the acquisition of an interest in land include—

(i)the creation of such an interest, and

(ii)the acquisition or creation of a right in or over land;

and references to interests in land are to be read accordingly.

(2)In the case of a compulsory purchase order made under section 10(1) of, and Part 1 of Schedule 4 to, the New Towns Act 1981 (compulsory acquisition by new town development corporation in usual cases), the reference in paragraph 1(4) to section 15A(3) of the Acquisition of Land Act 1981 is to be read as a reference to paragraph 5A(2) of Schedule 4 to the New Towns Act 1981.

(3)In the case of a compulsory purchase order made under section 13(1)(a) of, and Part 1 of Schedule 5 to, the New Towns Act 1981 (compulsory acquisition by new town development corporation of statutory undertakers’ operational land)—

(a)the reference in paragraph 1(4) to section 15A(3) of the Acquisition of Land Act 1981 is to be read as a reference to paragraph 5A(2) of Schedule 5 to the New Towns Act 1981, and

(b)the references in paragraph 1(4) and sub-paragraph (1)(a) to the confirmation of the order are to be read as references to the making of the order.

(4)In the case of a compulsory purchase order made under section 21A(1)(b) or (2)(b) of the Welsh Development Agency Act 1975 (compulsory acquisition by Welsh Ministers of land in Wales for Welsh development purposes)—

(a)the reference in paragraph 1(4) to submission under section 15A(3) of the Acquisition of Land Act 1981 is to be read as a reference to preparation under paragraph 3B(2) of Schedule 4 to the Welsh Development Agency Act 1975, and

(b)the references in paragraph 1(4) and sub-paragraph (1)(a) to the confirmation of the order are to be read as references to the making of the order.

(5)If—

(a)an interest in land is acquired further to section 154(2) of the Town and Country Planning Act 1990 (deemed compulsory acquisition further to blight notice), and

(b)the land falls within paragraph 22 of Schedule 13 to that Act (land blighted by compulsory purchase order),

the interest is to be treated for the purposes of this Schedule as having been acquired further to the compulsory purchase order by virtue of which the land falls within that paragraph.^F99]

^F100THIRD SCHEDULE Application of Part IV to Certain Cases

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Section 40.

FOURTH SCHEDULE ENACTMENTS AMENDED

The Town and Country Planning Act, 1944, and that Act as applied by the New Towns Act, 1946

1—5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

^F101 6, 7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

^F102 The Lands Tribunal Act, 1949

8 _C329 In subsection (6) of section one, for the words “an authority to whom the Acquisition of Land Act applies” there shall be substituted the words “any person”.

9, 10. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

^F103FIFTH SCHEDULE

^F104. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .