Housing Act 1985

4 (1) The amount of the payment to be made in respect of an interest is its full compulsory purchase value less the compensation which was or would have been payable in respect of the interest in connection with the compulsory purchase of the house at site value.

(2) For this purpose—

(a) “full compulsory purchase value” means the compensation which would be payable in respect of the compulsory purchase of that interest if it fell to be assessed in accordance with the [1961 c. 33.] Land Compensation Act 1961, and

(b) “site value” means compensation assessed in accordance with section 585.

(3) The amount payable shall be reduced by so much, if any, of the amount as may reasonably be attributed to any part of the house occupied, at the date of the making of the order in question or the giving of the undertaking, for any purposes other than those of a private dwelling.

(4) Any question as to the purposes for which any part of a house was occupied shall be determined by the Secretary of State; subject to that, the amount of any payment under this Part of this Schedule shall be determined (in default of agreement) as if it were compensation payable in respect of the compulsory purchase of the interest and shall be dealt with accordingly.