Part IE+W Determination of Questions of Disputed Compensation

1[F1Upper Tribunal to assess] compensation in respect of land compulsorily acquired.E+W

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] and shall be determined by the Tribunal in accordance with the following provisions of this Act.

F32 Procedures on references under s. 1. E+W

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F43 Consolidation of proceedings on claims in respect of several interests in the same land.E+W

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4 Costs. E+W

[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.]

(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] to that claimant does not exceed the sum offered; or

(b)the [F6Upper Tribunal] 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] 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] 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] is equal to or exceeds that sum, the [F7Upper Tribunal] 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] may in any case disallow the cost of counsel.

(5)Where the [F9Upper Tribunal] 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). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Part IIE+W Provisions determining amount of compensation

General provisionsE+W

5 Rules for assessing compensation.E+W

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 F11. . . 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 [F12Upper 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.

[F135ARelevant valuation dateE+W

(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 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.

(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.

(6)Subsection (5) also applies for the purposes of calculating interest under the following enactments—

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

(b)paragraph 3 of Schedule 3 to that Act;

(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 [F14Upper Tribunal] 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 under Schedule 3 to that Act or under section 85 of the Lands Clauses Consolidation Act 1845.]

6 Disregard of actual or prospective development in certain cases. E+W

(1)Subject to section eight of this Act, 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 to [F154B] 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 [F16and so far as applicable paragraph 3A] of Part I of that Schedule [F17and 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 M1Land 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. E+W

(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.E+W

(1)Where, for the purpose of assessing compensation in respect of a compulsory acquisition of an interest in land, an increase in the value of an interest in other land has, in any of the circumstances mentioned in the first column of Part I of the First Schedule to this Act, been taken into account by virtue of section seven of this Act or any corresponding enactment, 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 six of this Act, or taken into account by virtue of section seven of this Act or any corresponding enactment, in so far as it was taken into account in connection with the previous acquisition.

(2)Where, in connection with the compulsory acquisition of an interest in land, a diminution in the value of an interest in other land has, in any of the circumstances mentioned in the first column of the said Part I, been taken into account in assessing compensation for injurious affection, then, in connection with any subsequent acquisition to which this subsection applies, that diminution shall not be left out of account by virtue of section six of this Act in so far as it was taken into account in connection with the previous acquisition.

(3)Subsections (1) and (2) of this section apply to any subsequent acquisition 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 derives title to that interest from, the person who at the time of the previous acquisition was entitled to the interest previously taken into account;

and in this subsection any reference to the interest previously taken into account is a reference to the interest the increased or diminished value whereof was taken into account as mentioned in subsection (1) or subsection (2) of this section.

(4)Where, in connection with a sale of an interest in land by agreement, the circumstances were such that, if it had been a compulsory acquisition, an increase or diminution of value would have fallen to be taken into account as mentioned in subsection (1) or subsection (2) of this section, the preceding provisions of this section shall apply, with the necessary modifications, as if that sale had been a compulsory acquisition and that increase or diminution of value had been taken into account accordingly.

(5)Section seven of this Act shall not apply to any compulsory acquisition in respect of which the compensation payable is subject to the provisions of any corresponding enactment, nor to any compulsory acquisition in respect of which the compensation payable is subject to the provisions of any local enactment which provides (in whatever terms) that, in assessing compensation in respect of a compulsory acquisition thereunder, account shall be taken of any increase in the value of an interest in contiguous or adjacent land which is attributable to any of the works authorised by that enactment.

(6)Where any such local enactment as is mentioned in subsection (5) of this section includes a provision restricting the assessment of the increase in value thereunder by reference to existing use (that is to say, by providing, in whatever terms, that the increase in value shall be assessed on the assumption that planning permission in respect of the contiguous or adjacent land in question would be granted for development of any class specified in [F18Schedule 8 to the M2Town and Country Planning Act 1971], but would not be granted for any other development thereof), the enactment shall have effect as if it did not include that provision.

(7)References in this section to a corresponding enactment are references to any of the following, that is to say,—

(a)section thirteen of the M3Light Railways Act 1896;

(b). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F19

[F20(c)section 261(1) of the M4Highways Act 1980 (or its predecessor, section 222(6) of the M5Highways Act 1959);]

(d). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F21

and, in subsection (1), includes references to any such local enactment as is mentioned in subsection (5).

9 Disregard of depreciation due to prospect of acquisition by authority possessing compulsory purchase powers.E+W

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 . . . F22allocation 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.

Special CasesE+W

10. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F23E+W

[10AF24Expenses of owners not in occupation.E+W

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. E+W

In relation to compulsory acquisitions of interest in land which has been acquired by statutory undertakers (within the meaning of [F25the Town and Country Planning Act 1971]) 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. E+W

(1)Where, 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 M6Town 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)under Part II or Part V of the M7Town and Country Planning Act 1954, in respect of depreciation of the value of that interest, or

(b)under subsection (1) of section twenty-two of the M8Town 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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F26E+W

Assumptions as to planning permissionE+W

[F2714Taking account of actual or prospective planning permission.E+W

(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

(b)of the prospect, on the assumptions set out in subsection (5) but otherwise in the circumstances known to the market at the relevant valuation date, of planning permission being granted on or after that date for development, on the relevant land or other land, other than—

(i)development for which planning permission is in force at the relevant valuation date, and

(ii)appropriate alternative development.

(3)In addition, it may be assumed—

(a)that planning permission is in force at the relevant valuation date for any development that is appropriate alternative development to which subsection (4)(b)(i) applies, and

(b)that, in the case of any development that is appropriate alternative development to which subsection (4)(b)(ii) applies and subsection (4)(b)(i) does not apply, it is certain at the relevant valuation date that planning permission for that development will be granted at the later time at which at that date it could reasonably have been expected to be granted.

(4)For the purposes of this section, development is “appropriate alternative development” if—

(a)it is development, on the relevant land alone or on the relevant land together with other land, other than development for which planning permission is in force at the relevant valuation date, and

(b)on the assumptions set out in subsection (5) but otherwise in the circumstances known to the market at the relevant valuation date, planning permission for the development could at that date reasonably have been expected to be granted on an application decided—

(i)on that date, or

(ii)at a time after that date.

(5)The assumptions referred to in subsections (2)(b) and (4)(b) 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 to planning permission in subsections (2)(a) and (b)(i) and (4)(a) and section 15(1)(b), 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.

15Planning permission to be assumed for acquiring authority's proposalsE+W

(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 of it, and

(b)planning permission for that development is not in force at the relevant valuation date,

it is to be assumed for the purposes of section 14(2)(a) and (b)(i) and (4)(a) that planning permission is in force at the relevant valuation date for the development of the relevant land or that part of it, as the case may be, in accordance with the proposals of the acquiring authority.

(2)For the purposes of subsection (1)(b), no account is to 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 in the land.]

F2716 Special assumptions in respect of certain land comprised in development plans.E+W

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Part IIIE+W Certification by Planning Authorities of Appropriate Alternative Development

[F2817 Certificates of appropriate alternative development E+W

(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 containing whichever of the following statements is the applicable statement—

(a)that in the local planning authority's opinion there is development that, for the purposes of section 14, is appropriate alternative development in relation to the acquisition;

(b)that in the local planning authority's opinion there is no development that, for the purposes of section 14, is appropriate alternative development in relation to the acquisition.

(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—

(a)must contain whichever of the following statements is the applicable statement—

(i)that in the applicant's opinion there is development that, for the purposes of section 14, is appropriate alternative development in relation to the acquisition concerned;

(ii)that in the applicant's opinion there is no development that, for the purposes of section 14, is appropriate alternative development in relation to the acquisition concerned;

(b)must, if it contains a statement under paragraph (a)(i), specify—

(i)each description of development that in the applicant's opinion is, for the purposes of section 14, appropriate alternative development in relation to the acquisition, and

(ii)the applicant's reasons for holding that opinion; and

(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).

(5)If a certificate under this section contains a statement under subsection (1)(a) it must also—

(a)identify every description of development (whether specified in the application or not) that in the local planning authority's opinion is, for the purposes of section 14, appropriate alternative development in relation to the acquisition concerned, and

(b)give a general indication—

(i)of any conditions to which planning permission for the development could reasonably have been expected to be subject,

(ii)of when the permission could reasonably have been expected to be granted if it is one that could reasonably have been expected to be granted only at a time after the relevant valuation date, and

(iii)of any pre-condition for granting the permission (for example, entry into an obligation) that could reasonably have been expected to have to be met.

(6)If a certificate under this section contains a statement under subsection (1)(a)—

(a)then, for the purposes of section 14, development is appropriate alternative development in relation to the acquisition concerned if, and only if, it is of a description identified in accordance with subsection (5)(a) in the certificate, and

(b)the matters indicated in accordance with subsection (5)(b) in the certificate are to be taken to apply in relation to the planning permission that under section 14(3) may be assumed to be in force for that development.

(7)If a certificate under this section contains a statement under subsection (1)(b) then, for the purposes of section 14, there is no development that is appropriate alternative development in relation to the acquisition concerned.

(8)References in subsections (5) to (7) to a certificate under this section include references to the certificate as varied and to any certificate issued in place of the certificate.

(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, there must be taken into account any expenses reasonably 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 where any of the issues are determined in the person's favour).

(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. ]

[F2918 Appeal to Upper Tribunal against certificate under section 17E+W

(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, and

(b)must—

(i)confirm the certificate, or

(ii)vary it, or

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

as the Upper Tribunal may consider appropriate.

(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, the preceding provisions of this section apply as if the local planning authority has issued such a certificate containing a statement under section 17(1)(b).]

19 Extension of ss. 17 and 18 to special cases.E+W

( 1 ) Where an interest in land is proposed to be acquired [F30 by an authority possessing compulsory purchase powers ] , 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 M9 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 [F31paragraphs (a) and (b)] 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 [F31paragraph (c)] 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.

20 Power to prescribe matters relevant to Part III.E+W

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 F32 ... are to be made and dealt with F33 ..., and in particular—

(a)for prescribing (subject to the provisions of subsection (4) of section seventeen of this Act) the time within which a certificate is required to be issued under that section;

F34( 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;

F35( d ). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F3621 Proceedings for challenging validity of decision on appeal under s. 18.E+W

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

22 Interpretation of Part III. E+W

(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 [F37acquiring authority].

( 2 )For the purposes of sections seventeen [F38to nineteen] 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.

F39( 3 ). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F40Part IVE+W Compensation where Permission for Additional Development Granted after Acquisition

F41 23 Compensation where planning decision made after acquisition.E+W

(1)Where—

(a)any interest in land is compulsorily acquired or is sold to an authority possessing compulsory purchase powers and, before the end of the period of ten years beginning with the date of completion, a planning decision is made granting permission for the carrying out of additional development of any of the land; and

(b)the principal amount of the compensation which was payable in respect of the compulsory acquisition or, in the case of a sale by agreement, the amount of the purchase price, was less than the amount specified in subsection (2) of this section,

then, subject to the following provisions of this section, the person to whom the compensation or purchase price was payable shall be entitled, on a claim duly made by him, to compensation from the acquiring authority of an amount equal to the difference.

(2)The amount referred to in subsection (1)(b) of this section is the principal amount of the compensation which would have been payable in respect of a compulsory acquisition of the interest by the acquiring authority, in pursuance of a notice to treat served on the relevant date if—

(a)the planning decision mentioned in subsection (1)(a) of this section had been made before that date; and

(b)the permission granted by it had been in force on that date.

(3)No compensation shall be payable by virtue of this section in respect of a planning decision in so far as it relates to land acquired by the acquiring authority, whether compulsorily or by agreement—

[F42(za)under section 21A of the [F43Welsh Development Agency Act 1975 (Powers of land acquisition)];]

(a)under section 142 or 143 of the Local Government, Planning and Land Act 1980 (acquisitions by urban development corporations and by highway authorities in connection with urban development areas);

(b) under the New Towns Act 1981 (acquisitions by development corporations and by highway authorities in connection with new town areas); F44 . . .

(c)where the compulsory purchase order included a direction under section 50 of the Planning (Listed Buildings and Conservation Areas) Act 1990 (minimum compensation where building deliberately allowed to fall into disrepair) [F45or

(d)under Part 1 of the Housing and Regeneration Act 2008 (acquisition by the Homes and Communities Agency).]

(4)If—

(a)in accordance with the preceding provisions of this section the person referred to in subsection (1) of this section would be entitled to compensation under this section; but

(b)before the planning decision in question that person has died, or any other act or event has occurred whereby the right to compensation under this section, if vested in him immediately before that act or event, would thereupon have vested in some other person,

the right to compensation under this section shall be treated as having devolved as if that right had been vested in him immediately before his death or immediately before that act or event, as the case may be, and the compensation shall be payable to the persons claiming under him accordingly.

(5)Compensation under this section shall carry interest at the rate prescribed under section 32 of this Act from the date of the planning decision in question until payment.

(6)The provisions of Part I of this Act (so far as applicable) shall apply (subject to the following provisions) in relation to the assessment of compensation under this section as they apply in relation to the assessment of compensation in respect of the compulsory acquisition of an interest in land.]

F4624 Provisions as to claims under section 23.E+W

(1)For the purpose of facilitating the making of claims for compensation under section 23 of this Act—

(a)the person entitled to receive the compensation or purchase price in respect of such an acquisition or sale as is mentioned in section 23(1)(a) of this Act; or

(b)any person claiming under him as being a person who, if compensation under that section became payable, would be entitled to it by virtue of subsection (4) of that section,

may give to the acquiring authority an address for service under this section.

(2)Where, at any time—

(a)after a person has given an acquiring authority an address for service under this section; and

(b)before the end of the period mentioned in paragraph (a) of section 23(1) of this Act,

such a planning decision is made as is mentioned in that paragraph, the acquiring authority shall, subject to subsection (3) of this section, give notice of the decision in the prescribed form to that person at that address.

(3)If—

(a)an address for service has been given by such a person as is mentioned in subsection (1)(b) of this section; and

(b)the acquiring authority have reasonable grounds for believing that the person mentioned in subsection (1)(a) of this section is dead or that any other act or event has occurred as mentioned in section 23(4)(b) of this Act,

the acquiring authority need not give a notice to the person mentioned in subsection (1)(a).

(4)A claim for compensation under section 23 of this Act in respect of a planning decision shall not have effect if made more than six months after the following date, that is to say—

(a)if the claim is made by a person who has not given the acquiring authority an address for service under this section, the date of the decision;

(b)if the claim is made by a person who has given the acquiring authority such an address, the date on which notice of the decision is given to him in accordance with subsection (2) of this section;

but, where there is an appeal against the planning decision, the reference in paragraph (a) of this subsection to the date of the planning decision shall be read as a reference to the date of the decision on the appeal.

(5)The references in subsection (4) of this section to an appeal against a planning decision include an appeal made by virtue of section 78(2) of the M10Town and Country Planning Act 1990.

(6)Where—

(a)a person has given to an acquiring authority an address for service under this section; and

(b)that authority, before the end of the period mentioned in section 23(1)(a) of this Act, cease to be entitled to an interest in the whole or part of the land comprised in the acquisition or sale, without remaining or becoming entitled to a freehold interest in, or tenancy of, that land or that part of it, as the case may be,

they shall notify the local planning authority; and after that it shall be the duty of the local planning authority to give notice to the acquiring authority of any planning decision of which the acquiring authority are required to give notice under subsection (2) of this section.

(7)Notice under subsection (6) of this section of a planning decision—

(a)in the case of a decision made by the local planning authority, shall be given within seven days after the making of the decision; and

(b)in any other case, shall be given within seven days after the making of the decision has been notified to the local planning authority.

F4725 Extension to planning permission where no planning decision made.E+W

(1)The provisions of sections 23 and 24(1) of this Act shall have effect in relation to any planning permission falling within column 1 of the following table for any development as if a planning decision granting that permission had been made on the date shown in column 2.

(2)Where the provisions of section 23 of this Act have effect as applied by subsection (1) of this section in relation to any planning permission falling within column 1 of that table for any development, then if—

(a)before the date shown in column 2, a person who (under section 24(1) of this Act as so applied) is entitled to give an address for service under that section has given such an address to the acquiring authority; and

(b)the development is proposed to be carried out by the acquiring authority or, if it is proposed to be carried out by a person other than the acquiring authority, notice of that proposal is given to the acquiring authority by the person proposing to carry out the development,

it shall, subject to subsection (3) of this section, be the duty of the acquiring authority to give notice of that proposal in the prescribed form to the person mentioned in paragraph (a) of this subsection at the address given by him to the authority.

(3)An acquiring authority shall not be required by virtue of subsection (2) of this section to give notice of proposed development to the person mentioned in section 24(1)(a) of this Act if—

(a)an address for service has been given to them by such a person as is mentioned in section 24(1)(b) of this Act; and

(b)they have reasonable grounds for believing that the former person is dead or that any other act or event has occurred as mentioned in section 23(4)(b) of this Act.

(4)A claim for compensation under section 23 of this Act in respect of a planning permission falling within column 1 of that table shall not have effect if made more than six months after the following date, that is to say—

(a)if the claim is made by a person to whom notice has been given under subsection (2) of this section, the date on which the notice was given;

(b)in any other case, the date shown in column 2.

F4826 Extension to Crown development.E+W

(1)Where—

(a)any interest in land is compulsorily acquired or is sold to an authority possessing compulsory purchase powers, and before the end of the period of ten years beginning with the date of completion there is initiated any additional development of any of the land which was comprised in the acquisition or sale; and

(b)by reason of any such circumstances as are mentioned in subsection (2) of this section the development in question is development for which planning permission is not required,

the provisions of sections 23 and 24(1) of this Act shall apply as if a planning decision granting permission for that development had been made at the time when the additional development is so initiated.

(2)The circumstances referred to in subsection (1) of this section are either or both of the following—

(a)that the development is initiated by or on behalf of the Crown;

(b)that there is a Crown or Duchy interest in the land and the development is initiated in right of that interest.

(3)Where—

(a)the provisions of section 23 of this Act have effect as applied by subsection (1) of this section in relation to the initiation of any development; and

(b)before the development is initiated a person who (under section 24(1) of this Act as so applied) is entitled to give an address for service under that section has given such an address to the acquiring authority,

it shall, subject to subsections (4) and (5) of this section, be the duty of the acquiring authority to give notice in the prescribed form of the initiation of the development to the person mentioned in paragraph (b) of this subsection at the address given by him to the authority.

(4)Where—

(a)by virtue of subsection (3) of this section, it is the duty of a government department to give notice of development initiated by or on behalf of that department; and

(b)the Minister in charge of the department certifies that for reasons of national security it is necessary that the nature of the development should not be disclosed, except to the extent specified in the certificate,

the department shall give notice of development, but shall not be required to give any particulars of the nature of the development except to the extent specified in the certificate.

(5)An acquiring authority shall not be required by virtue of subsection (3) of this section to give notice of proposed development to the person mentioned in section 24(1)(a) of this Act if—

(a)an address for service has been given to them by such a person as is mentioned in section 24(1)(b) of this Act; and

(b)they have reasonable grounds for believing that the former person is dead or that any other act or event has occurred as mentioned in section 23(4)(b) of this Act.

(6)A claim for compensation under section 23 of this Act in respect of the initiation of any development shall not have effect if made more than six months after the following date, that is to say—

(a)if the claim is made by a person to whom notice has been given under subsection (3) of this section, the date on which the notice was given;

(b)in any other case, the time the development is initiated.

(7)In this section “Crown or Duchy interest” means an interest belonging to Her Majesty in right of the Crown or of the Duchy of Lancaster, or belonging to the Duchy of Cornwall, or belonging to a government department or held in trust for Her Majesty for the purposes of a government department.

F4927 Application of Part IV to certain cases.E+W

The preceding provisions of this Part of this Act shall have effect subject to the provisions of the Third Schedule to this Act.

F5028 Regulations for purposes of Part IV.E+W

(1)The Secretary of State may by statutory instrument make regulations for prescribing the form of any notice required by this Part of this Act to be given in the prescribed form.

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

F5129 Interpretation of Part IV.E+W

(1)In this Part of this Act—

• “additional development”, in relation to an acquisition or sale of an interest in land, means any development of the land other than the following, that is to say—

(a)where the acquiring authority are a local authority, and acquired the interest for the purposes of any of their functions, development for the purposes of the functions for which they acquired it;

(b)where the acquiring authority are not a local authority, development for the purposes of the project in connection with which they acquired the interest;

(c)development for which planning permission was in force on the relevant date;

(d)in the case of compulsory acquisition, development for which it was assumed (in accordance with the provisions of [F52sections 14 and 15] of this Act) for the purpose of assessing compensation that planning permission would be granted; and

(e)in the case of a sale by agreement, development for which, if the interest (instead of being sold by agreement) had been compulsorily acquired by the acquiring authority in pursuance of a notice to treat served on the relevant date, it would have been so assumed;

• “date of completion”, in relation to an acquisition or sale of an interest in land, means the date on which the acquisition or sale is completed by the vesting of that interest in the acquiring authority;

• “local authority” means—

[F53(a)a charging authority or precepting authority (as defined in section 144 of the Local Government Finance Act 1988) F54...;

(aa)a fire and rescue authority in Wales constituted by a scheme under section 2 of the Fire and Rescue Services Act 2004 or a scheme to which section 4 of that Act applies;]

(b)a levying body within the meaning of section 74 of [F55the Local Government Finance Act 1988];

(c)a body as regards which section 75 of that Act applies;

(d)any joint board or joint committee if all the constituent authorities are such authorities as are described in paragraphs (a) to (c); and

(e)the Honourable Society of the Inner Temple or the Honourable Society of the Middle Temple;

and includes any internal drainage board under section 6 of the M11Land Drainage Act 1976;

• “prescribed” means prescribed by regulations under this Part of this Act;

• “the relevant date”, in relation to a compulsory acquisition of an interest in land, means the date of service of the notice to treat and, in relation to a sale of such an interest by agreement, means the date of the making of the contract in pursuance of which the sale was effected.

(2)In this Part of this Act any reference to the granting of permission for the carrying out of development of any land is a reference to the granting of permission (including where applicable outline permission) for that development—

(a)either unconditionally or subject to conditions; and

(b)either in respect of that land taken by itself or in respect of an area including that land.

Part VE+W Miscellaneous and General

30. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F56E+W

31 Withdrawal of notices to treat. E+W

(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 [F57Upper Tribunal] 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 [F58Upper Tribunal], a proper notice of claim should have been delivered by him.

(4)The amount of any compensation payable under subsection (3) of this section shall, in default of agreement, be determined by the [F59Upper Tribunal].

(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 [F60Upper Tribunal] 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. E+W

(1)The 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 M12Lands 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.

33 Application of Act to Crown.E+W

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.E+W

(1)[F61Where 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.]

(2)In this section “ecclesiastical property” means land belonging to any ecclesiastical benefice [F62of the Church of England], or being or forming part of a church subject to the jurisdiction of a bishop of any diocese [F62of the Church of England] or the site of such a church, or being or forming part of a burial ground subject to such jurisdiction.

35 Certificates of value.E+W

The [F63Upper Tribunal] 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.E+W

(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.E+W

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 [F64section 250 of the M13Local Government Act 1972] (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.E+W

(1)Subject to the provisions of this section, any notice or other document required or authorised to be served or given under Part III or Part IV 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 [F65the M14Town and Country Planning Act 1971], 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.E+W

(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 [F66community council] or parish meeting on whose behalf [F66district council][F67, county council or county borough council] 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;

• “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 . . . F68or 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 [F69section 22 of the M15Town and Country Planning Act 1971], and “develop” shall be construed accordingly;

• “development order” means an order under subsection (1) of [F69section 24 of the Town and Country Planning Act 1971];

• “development plan” has the meaning assigned to it by section five of the M16Town 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;

• [F70“local planning authority” shall be construed in accordance with Part I of the Town and Country Planning Act 1990;]

• “the Minister” means [F71the Secretary of State];

• “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 [F69Part III of the Town and Country Planning Act 1971];

• “planning permission” means permission under [F69Part III of the Town and Country Planning Act 1971];

• “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;

• “tenancy” has the same meaning as in the M17Landlord 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 [F69section 37 of the M18Town and Country Planning Act 1971], 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 [F69section 37 of the Town and Country Planning Act 1971], 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.E+W

(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)any enactment excluding the power conferred by subsection (2) of section five of the M19Acquisition 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). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F72

(3). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F73

(4)The mention of particular matters in this section shall not be taken to affect the general application to this Act of [F74sections 16(1) and 17(2)(a) of the M20Interpretation Act 1978] (which relates to the effect of repeals).

(5). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F75

41 Saving for transactions before commencement of Act.E+W

This 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 . . . F76; 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.E+W

(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

FIRST SCHEDULEE+W Actual or Prospective Development relevant for purposes of Sections 6 & 7

Part IE+W Description of Development

Part IIE+W Special Provisions as to New Towns

5E+WIn this Part of this Schedule “the transfer date”, in relation to a new town, means the date on which, by virtue of any enactment contained in any Act relating to new towns, whether passed before or after this Act, the development corporation established for the purposes of that new town ceases to act, except for purposes of or incidental to the winding up of its affairs.

6E+WLand shall not be treated as forming part of such an area as is mentioned in paragraph 3 [F81or 3A] of this Schedule if the notice to treat is served on or after the transfer date.

7E+WIn determining whether the relevant land forms part of such an area as is mentioned in the said paragraph 3,—

(a)in the case of an area designated as the site of a new town by an order which became operative on or before the twenty-ninth day of October, nineteen hundred and fifty-eight, regard shall be had to that order in the form in which, whether as originally made or as subsequently varied, it was in force on that day, and any variation becoming operative after that day shall be disregarded;

(b)in the case of an area designated as the site of a new town by an order which became operative after the said twenty-ninth day of October, whether before or after the passing of this Act, regard shall be had to the order in its original form, and any variation of the order shall be disregarded.

8E+WFor the purpose of determining whether any development of which there is a prospect on the date of service of the notice to treat would be such development as is described in the said paragraph 3 [F82or 3A] it is immaterial whether the time when that development will or may take place is a time before, on or after the transfer date.

[F839(1)This paragraph applies where, before the date of service of the notice to treat for the purposes of a compulsory acquisition (the relevant acquisition), the land has been disposed of by an authority or body in circumstances where paragraph 3 or 3A of this Schedule would have applied if (at the time of the disposal) the authority or body had been compulsorily acquiring the land.E+W

(2)In that case, paragraphs 3 and 3A shall not apply for the purposes of the relevant acquisition.]

[F84Part III]E+W Special Provisions as to Urban Development Areas

10E+WFor the avoidance of doubt it is hereby declared—

(a)that, in assessing in the circumstances described in paragraph 4A in the first column of Part I of this Schedule the increase or diminution in value to be left out of account by virtue of section 6 of this Act, no increase or diminution in value is to be excluded from being left out of account; and

(b)that, in assessing in those circumstances the increase in value to be taken into account by virtue of section 7 of this Act, no increase in value is to be excluded from being taken into account,

merely because it is attributable—

(i)to any development of land which was carried out before the area was designated as an urban development area;

(ii)to any development or prospect of development of land outside the urban development area;

(iii)to any development or prospect of development of land by an authority other than the acquiring authority, possessing compulsory purchase powers.

11E+WParagraph 10 of this Schedule shall have effect in relation to any increase or diminution in value to be left out of account by virtue of any rule of law relating to the assessment of compensation in respect of compulsory acquisition as it has effect in relation to any increase or diminution in value to be left out of account by virtue of section 6 of this Act.

SECOND SCHEDULEE+W . . . F85

[F86THIRD SCHEDULEE+W Application of Part IV to Certain Cases

Disturbance, severance and injurious affectionE+W

F871E+WSubject to paragraph 2 of this Schedule, any reference in section 23 of this Act to the principal amount of any compensation shall be construed as including any sum attributable to disturbance, severance or injurious affection.

F882E+WIf the person entitled to the compensation under section 23 of this Act—

(a)was, at the time of the compulsory acquisition or sale mentioned in subsection (1) of that section, entitled to an interest in other land contiguous or adjacent to the land acquired or purchased; but

(b)is, at the time of the planning decision in question, no longer entitled to that interest, either in respect of the whole or in respect of part of that land;

any reference in section 23 of this Act to the principal amount of any compensation or the amount of the purchase price shall be construed as excluding so much of the compensation or purchase price as was or would have been attributable to severance or injurious affection of that land or, as the case may be, of that part.

Increase in value of contiguous or adjacent landE+W

F893E+WIn determining for the purposes of section 23 of this Act the difference between the principal amount of the compensation specified in subsection (2) of that section and the principal amount of the compensation or the amount of the purchase price mentioned in subsection (1) of that section, in a case where—

(a)the compensation or the purchase price was or would have been reduced (whether by virtue of section 7 of this Act or otherwise) by reason of an increase in the value of an interest in contiguous or adjacent land; but

(b)at the time of the planning decision the person entitled to the compensation under section 23 of this Act is not entitled to the interest or is entitled to it only as respects part of the contiguous or adjacent land,

the amount specified in section 23(2) and the principal amount or purchase price mentioned in section 23(1) shall be calculated as if the circumstances by reason of which it was or would have been so reduced had not existed or, as the case may be, as if the interest in the contiguous or adjacent land had subsisted only in that part of the land.

Mortgaged landE+W

F904E+WSubject to the provisions of this Schedule relating to settled land, where, in a case falling within section 23(1) of this Act, the interest in land which was acquired or sold was subject to a mortgage, any reference (however expressed) in section 23 or section 24 of this Act to the person entitled to the compensation or purchase price shall be construed as a reference to the person who, subject to the mortgage, was entitled to that interest, and not as a reference to the mortgagee.

F915E+WFor the purposes of the application of section 23 of this Act, and of the provisions of this Schedule other than this paragraph, to a case falling within the preceding paragraph, any reference to the principal amount of the compensation which was or would have been payable in respect of any compulsory acquisition shall be construed as a reference to the principal amount of the compensation which would have been payable if the interest in question had not been subject to a mortgage.

F926E+WNo compensation shall be payable by virtue of section 23 of this Act in respect of a compulsory acquisition or sale by agreement where the interest acquired or sold was the interest of a mortgagee (as distinct from an interest subject to a mortgage).

Settled landE+W

F937(1)Where, in a case falling within section 23(1) of this Act, the interest in land which was acquired or sold was subject to a settlement, and accordingly the compensation or purchase price was payable to the trustees of that settlement, any reference (however expressed) in section 23 or section 24 of this Act to the person entitled to the compensation or purchase price shall be construed as a reference to the trustees for the time being of the settlement.E+W

(2)Where sub-paragraph (1) of this paragraph applies, section 23(4) of this Act shall not apply.

(3)Any compensation paid to the trustees of the settlement by virtue of section 23 of this Act in respect of a compulsory acquisition or sale by agreement shall be applicable by the trustees as if it were proceeds of the sale of the interest acquired or sold.

(4)In this paragraph “settlement” means a settlement within the meaning of the M25Settled Land Act 1925, or a trust for sale within the meaning of the M26Law of Property Act 1925.

InterpretationE+W

F948E+WReferences in this Schedule to sections 23 and 24 of this Act include references to those sections as applied by section 25 or 26 of this Act, and references to the time of any planning decision shall be construed accordingly.]

Section 40.

FOURTH SCHEDULEE+W ENACTMENTS AMENDED

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

1—5E+W. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F95

6, 7.E+W. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F96

The Lands Tribunal Act, 1949E+W

8E+WIn 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.E+W. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F97

FIFTH SCHEDULE F98E+W

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