Town and Country Planning Act 1990

Section 119.

SCHEDULE 12 E+W Unexpended Balance of Established Development Value

Derivation of unexpended balance from claims under Part VI of 1947 Act E+W

1 (1) In determining for the purposes of this Part whether land has an unexpended balance of established development value, regard shall be had to claims made, in pursuance of Part Vl of the 1947 Act, for payments under the scheme provided for by section 58 of that Act (that is to say, the scheme which, but for the provisions of section 2 of the M1 Town and Country Planning Act 1953 , would have fallen to be made under the said section 58, providing for payments in respect of interests in land depreciated in value by virtue of the provisions of the 1947 Act).

(2) Where such a claim was made in respect of an interest in land, that claim shall for the purposes of this Part be taken to have been established in respect of that land under Part Vl of the 1947 Act if an amount was determined under that Part as being the development value of the interest to which the claim related, and payment in respect of that interest would not have been excluded—

(a) by section 63 of the 1947 Act (which excluded claims where the development value was small in proportion to the area, or to the restricted value, of the land); or

(b) by any of sections 82 to 85 of that Act (which related to certain land belonging to local authorities, development corporations and statutory undertakers, and to land held on charitable trusts); or

(c) by section 84 of that Act as applied by regulations under section 90 of that Act (which related to the National Coal Board).

(3) In this Part—

(a) “established claim” means a claim which by virtue of sub-paragraph (2) is to be taken to have been established as mentioned in that sub-paragraph, and references to the establishment of a claim shall be construed accordingly; and

(b) “the claim area”, in relation to an established claim, means the land in respect of which the claim is by virtue of that sub-paragraph to be taken to have been established.

(4) References in this Part to the benefit of an established claim—

(a) in relation to any time before the passing of the M2 Town and Country Planning Act 1953, whether before or after the making of the claim, or before or after the establishment of it, shall be construed as references to the prospective right, under and subject to the provisions of the scheme referred to in sub-paragraph (1), to receive a payment in respect of the interest in land to which the claim related; and

(b) in relation to any time after the passing of that Act, shall be construed as references to such prospective right to the satisfaction of the claim as subsisted by virtue of section 2 of that Act immediately before lst January 1955 (the date of the commencement of the 1954 Act);

and references to part of the benefit of an established claim shall be construed accordingly.

(5) References in this Part to the amount of an established claim are references to the amount determined under Part Vl of the 1947 Act as being the development value of the interest in land to which the claim related.

(6) In this paragraph any reference to Part Vl of the 1947 Act includes a reference to the provisions of that Part as modified by Schedule 1 to the 1954 Act.

Marginal Citations

M1 1953 c. 16.

M2 1953 c. 16.

Original unexpended balance of established development value E+W

2 (1) In this Part “original unexpended balance of established development value”, in relation to any land, means the unexpended balance of established development value which that land had immediately after the time when, in accordance with paragraph 4, the adjustment of claim holdings is deemed to have been completed.

(2) For the purposes of this Part land shall be taken to have had such a balance if, immediately after the time referred to in sub-paragraph (1)—

(a) there were subsisting one or more claim holdings whose area consisted of that land, or included that land together with other land; and

(b) there was not subsisting any claim holding whose area consisted of part only of that land, whether with or without other land.

(3) Where sub-paragraph (2) applies, there shall be attributed to the land referred to in that sub-paragraph—

(a) the value of any claim holding having an area consisting of that land; and

(b) such fraction of the value of any claim holding whose area included that land as attached to that land,

and the original unexpended balance of established development value of that land shall be taken to have been an amount equal to eight-sevenths of the amount or aggregate amount so attributed.

Claim holdings: their areas and values E+W

3 (1) Subject to this paragraph and to paragraph 4, in this Part—

(a) “claim holding” means the benefit of an established claim;

(b) references to the area of a claim holding are references to the land which, in relation to the established claim constituting that holding, is the claim area;

(c) references to the value of a claim holding are references to the amount of the established claim constituting that holding; and

(d) references to the fraction of the value of a claim holding which attached to a part of the area of the holding are references to so much of the amount of the established claim of which that holding represents the benefit or part of the benefit (in this paragraph referred to as “the relevant established claim”) as was properly attributable to that part of the area of the holding.

(2) In the case of a claim holding where—

(a) the area of the holding is the same as the claim area of the relevant established claim; but

(b) the value of the claim holding is, by virtue of the adjustment of claim holdings, less than the amount of the relevant established claim,

the amount of any such fraction as is referred to in sub-paragraph (1)(d) shall be treated as reduced proportionately.

(3) In the case of a claim holding where—

(a) the area of the holding consists of part only of the claim area of the relevant established claim; and

(b) the value of the holding is, by virtue of the adjustment of claim holdings, less or greater than so much of the amount of the relevant established claim as was properly attributable to the area of the holding,

the amount of any such fraction as is referred to in sub-paragraph (1)(d) shall be treated as reduced, or (as the case may be) increased, proportionately.

(4) For the purposes of this paragraph, the part of the amount of the relevant established claim which was properly attributable to any land forming part of the claim area shall be taken to have been so much of the amount of that claim as might reasonably be expected to have been attributed to that land if the authority determining that amount had been required to apportion it, in accordance with the same principles as applied to its determination, between that land and the residue of the claim area.

Adjustment of claim holdings: preliminary E+W

4 (1) Paragraphs 5 to 11 shall have effect with respect to the adjustment of claim holdings for the purposes of this Part.

(2) Any reference in this Part to the adjustment of claim holdings is a reference to the operation of those paragraphs.

(3) For the purposes of this Part the adjustment of claim holdings shall be deemed to have been completed on 1st January 1955.

(4) In paragraphs 5 to 11 “the time of completion” means the time when, in accordance with sub-paragraph (3), the adjustment of claim holdings is deemed to have been completed.

Adjustment of claim holdings pledged to Central Land Board as security for development charges E+W

5 (1) Where a claim holding was pledged to the Central Land Board in accordance with the special arrangements relating to owners of single house plots, that claim holding shall, subject to sub-paragraph (2), be deemed to have been extinguished as from the time when it was pledged to the Board.

(2) Where a claim holding (in this sub-paragraph referred to as “the original holding”) was pledged as mentioned in sub-paragraph (1) but was so pledged by reference to a plot of land which did not extend to the whole of the area of the original holding, that sub-paragraph shall not apply, but there shall be deemed to have been substituted for the original holding, as from the time of the pledge, a claim holding with an area consisting of so much of the area of the original holding as was not comprised in that plot of land, and with a value equal to that fraction of the value of the original holding which then attached to so much of the area of the original holding as was not comprised in that plot.

(3) Without prejudice to sub-paragraphs (1) and (2), where a pledge to the Central Land Board comprised one or more claim holdings, and the unpaid balance of the development charge covered by the pledge, or (if more than one) the aggregate of the unpaid balances of the development charges so covered, was equal to or greater than the value of the claim holding, or the aggregate value of the claim holdings, as the case may be, the holding or holdings shall be deemed to have been extinguished as from the time of the pledge.

(4) Where a pledge to the Central Land Board comprised only a single claim holding with an area of which every part either consisted of, or formed part of, the land in respect of which some development charge covered by the pledge was determined, and sub-paragraph (3) does not apply, the value of that claim holding shall be deemed to have been reduced, as from the time of the pledge, by the unpaid balance of the development charge covered by the pledge, or (if more than one) by the aggregate of the unpaid balances of all the development charges covered by the pledge.

(5) Sub-paragraphs (6) to (9) shall have effect in the case of a pledge of one or more claim holdings to the Central Land Board to which neither sub-paragraph (3) nor (4) applies.

(6) Any claim holding comprised in the pledge with an area of which every part either consisted of, or formed part of, the land in respect of which some development charge covered by the pledge was determined shall be allocated to the development charge in question, or (if more than one) to those development charges collectively.

(7) Any claim holding comprised in the pledge with an area part of which did, and part of which did not, consist of, or form part of, such land as is mentioned in sub-paragraph (6) shall be treated as if, at the time of the pledge, the claim holding (in this sub-paragraph referred to as “the parent holding”) had been divided into two separate claim holdings, that is to say—

(a) a claim holding with an area consisting of so much of the area of the parent holding as consisted of, or formed part of, such land as is mentioned in sub-paragraph (6), and with a value equal to that fraction of the value of the parent holding which then attached to that part of the area of the parent holding; and

(b) a claim holding with an area consisting of the residue of the area of the parent holding, and with a value equal to that fraction of the value of the parent holding which then attached to the residue of the area of the parent holding,

and the claim holding referred to in paragraph (a) shall be allocated to the development charge in question, or (if more than one) to those development charges collectively.

(8) Sub-paragraph (3) or (4) shall then apply in relation to each claim holding (if any) allocated in accordance with sub-paragraph (6) or sub-paragraph (7) to any development charge, or to any development charges collectively, as if the pledge had comprised only that claim holding and had covered only that development charge or those development charges.

(9) If, after the application of the previous provisions of this paragraph, there remains outstanding any claim holding not allocated in accordance with those provisions, or any claim holding which (having been so allocated) is deemed to have been reduced in value but not extinguished, an amount equal to the aggregate of—

(a) the unpaid balance of any development charge covered by the pledge to which no claim holding was so allocated; and

(b) the amount (if any) by which the value of any claim holding so allocated which is deemed to have been extinguished falls short of the unpaid balance of the development charge, or the aggregate of the unpaid balances of the development charges, to which it was so allocated,

shall be treated as having been deducted from the value of the claim holding so remaining outstanding, or (if more than one) as having been deducted rateably from the respective values of those claim holdings, and the value of any such holding shall be deemed to have been reduced accordingly as from the time of the pledge.

6 (1) In paragraph 5 and this paragraph references to the pledging of a claim holding to the Central Land Board are references to any transaction by which—

(a) the holder of the claim holding mortgaged it to the Central Land Board as security, or part of the security, for one or more development charges determined, or thereafter to be determined, by the Board; or

(b) the holder and the Central Land Board agreed that a development charge determined by the Board should be set off against any payment which might thereafter become payable to the holder by reference to that holding; or

(c) the Central Land Board refrained from determining a development charge, which would otherwise have fallen to be determined by them, in consideration of a mortgage of the holding, with or without other claim holdings.

(2) All pledges of claim holdings to the Central Land Board made by the same person, whether or not made at the same time, other than any pledge to which paragraph 5(1) applies, shall for the purposes of paragraph 5 and this paragraph be treated collectively as a single pledge made at the time when the last of those pledges was made.

(3) Where a development charge covered by a pledge to the Central Land Board was determined in respect of land consisting of, or forming part of, the area of a claim holding—

(a) which was not comprised in the pledge; but

(b) whose holder immediately before the time of completion was the person who would, apart from the pledge, have been liable to pay the unpaid balance of the development charge,

then, for the purposes of paragraph 5 and this paragraph, that claim holding shall be deemed to have been comprised in the pledge.

(4) In paragraph 5 and this paragraph references to the determination of a development charge in respect of any land are references to a determination of the Central Land Board that the charge was payable in respect of the carrying out of operations in, on, over or under that land, or in respect of the use of that land.

(5) For the purposes of paragraph 5 and this paragraph the amount of a development charge—

(a) in a case where the Central Land Board determined that amount as a single capital payment, shall be taken to have been the amount of that payment; and

(b) in a case where the Board determined that amount otherwise than as a single capital payment, shall be taken to have been the amount of the single capital payment which would have been payable if the Board had determined the amount as such a payment;

and references in those paragraphs to the unpaid balance of a development charge are references to the amount of the charge, if no sum was actually paid to the Board on account of the charge, or if any sum was so paid, are references to the amount of the charge reduced by the amount or aggregate amount of the sum or sums so paid, other than any sum paid by way of interest.

(6) In relation to the pledging of a claim holding to the Central Land Board, references in paragraph 5 and this paragraph to a development charge covered by the pledge are references to a development charge the payment of which was secured, or partly secured, by the pledge, or, as the case may be, which was agreed to be set off against any payment which might become payable by reference to that claim holding.

(7) References in paragraph 5 and this paragraph to a mortgage of a claim holding do not include a mortgage which was subsequently discharged.

Adjustment by reference to payments in respect of war-damaged land E+W

7 (1) This paragraph shall have effect where a payment under the scheme has become, or becomes payable in respect of an interest in land, and a claim holding related (or would, apart from this paragraph, have related) to the same interest in the whole or part of that land, with or without any other land.

(2) In this paragraph—

• “the scheme” means the scheme made under section 59 of the 1947 Act,

• “the date of the scheme” means l2th December 1949,

• “payment under the scheme” means a payment which has become, or becomes, payable by virtue of the scheme,

and in relation to any payment under the scheme—

(a) references to the payment area are references to the land in respect of which the payment became or becomes payable, and

(b) references to the amount of the payment shall be construed as references to the principal amount of it, excluding any interest payable on it in accordance with section 65(3) of the 1947 Act.

(3) If the payment area is identical with the area of the claim holding, then—

(a) in the case of a payment of an amount equal to the value of the claim holding, the claim holding shall be deemed to have been extinguished as from the date of the scheme;

(b) in the case of a payment of an amount less than the value of the claim holding, the value of the claim holding shall be deemed to have been reduced, as from the date of the scheme, by the amount of the payment.

(4) If the payment area forms part of the area of the claim holding, the holding (in this sub-paragraph referred to as “the parent holding”) shall be treated, as from the date of the scheme, as having been divided into two claim holdings, that is to say—

(a) a claim holding with an area consisting of that part of the area of the parent holding which constituted the payment area, and with a value equal to that fraction of the value of the parent holding which attached to that part of the area of the parent holding; and

(b) a claim holding with an area consisting of the residue of the area of the parent holding, and with a value equal to that fraction of the value of the parent holding which attached to the residue of the area of the parent holding;

and sub-paragraph (3) shall have effect in relation to the claim holding referred to in paragraph (a) as if it were the parent holding.

(5) If the payment area includes the area of the claim holding together with other land, sub-paragraph (3) shall apply as if—

(a) the payment area had been identical with the area of the claim holding; but

(b) the amount of the payment had been so much of the actual amount of it, as might reasonably be expected to have been attributed to the area of the claim holding if, under the scheme, the authority determining the amount of the payment had been required (in accordance with the same principles as applied to the determination of that amount) to apportion it between the area of the claim holding and the rest of the payment area.

(6) If the payment area includes part of the area of the claim holding together with other land not comprised in the area of the claim holding—

(a) sub-paragraph (4) shall apply as if the part of the payment area comprised in the area of the claim holding had been the whole of the payment area; and

(b) sub-paragraph (5) shall apply as if the part of the area of the claim holding comprised in the payment area had been the whole of the area of the claim holding.

Adjustment in cases of partial disposition of claim holdings E+W

8 (1) This paragraph shall have effect where, by virtue of a disposition of part of the benefit of an established claim, not being a mortgage made otherwise than by way of assignment (in this paragraph referred to as “the relevant disposition”), different persons became entitled to different parts of the benefit of that established claim.

(2) As from the date of the relevant disposition, each of those different parts shall be treated as having constituted a separate claim holding.

(3) The area and value of any such separate claim holding at any time after the relevant disposition shall be taken to have been such as may, in the requisite manner, be or have been determined to be just and appropriate in all the circumstances.

(4) In sub-paragraph (3) the reference to determination in the requisite manner of the area and value of a claim holding is a reference to the determination of it on the occasion of an apportionment affecting that holding which fell or falls to be made for any of the purposes of the 1954 Act, Part VI of the 1962 Act or Schedule 5 to that Act, Part VII of the 1971 Act or this Part of this Act, being a determination made—

(a) by the authority making that apportionment; or

(b) where, under the 1954 Act, Part Vl of the 1962 Act, Part VII of the 1971 Act or this Part that authority’s findings were or are referred to the Lands Tribunal, by that Tribunal,

having regard in particular to the principles mentioned in sub-paragraphs (5) to (8).

(5) The aggregate of the values of all claim holdings representing parts of the benefit of the same established claim must not exceed the amount of the established claim.

(6) Subject to sub-paragraph (5), where a claim holding representing part only of the benefit of an established claim was pledged to the Central Land Board, otherwise than as mentioned in paragraph 5(1), and by virtue of paragraph 5 the value of that claim holding is deemed to have been reduced by reference to an amount due by way of development charge, the value of that holding at the time of the pledge is not to be taken to have been less than the amount credited for the purposes of the pledge by reference to the holding.

(7) In the case of the claim holding representing the part of the benefit of an established claim which was the subject of the relevant disposition, if it was not a claim holding to which sub-paragraph (8) applies—

(a) the area of that claim holding is to be taken to be the claim area of that established claim, less the area of any claim holding to which that sub-paragraph applies which represents part of the benefit of the same established claim; and

(b) the value of the claim holding immediately after the relevant disposition is, subject to sub-paragraphs (5) and (6), to be taken to have been that part of the amount of the established claim to which the holder purported to become entitled under the terms of the relevant disposition.

(8) Where any person who was entitled to a claim holding representing part only of the benefit of an established claim—

(a) at any time while so entitled was also entitled to the interest in land to which the established claim related in so far as that interest subsisted in part only of the claim area; and

(b) became entitled to both that holding and that interest in such circumstances that the authority making the apportionment in question or the Lands Tribunal, as the case may be, were or are satisfied that the holding and the interest were intended to relate to one another,

the area of that claim holding is to be taken to be that part of the claim area, and the value of the holding immediately after the relevant disposition (however that or any other disposition affecting the holding was expressed, but subject to sub-paragraphs (5) to (7)) is to be taken to have been an amount equal to so much of the amount of the established claim as might reasonably be expected to have been attributed to that part of the claim area if the authority determining the amount of that established claim had been required to apportion it, in accordance with the same principles as applied to its determination, between that part and the residue of the claim area.

(9) Paragraph 6 shall apply for the purposes of this paragraph as it applies for the purposes of paragraph 5.

Adjustment in respect of payments under Part I of 1954 Act E+W

9 (1) This paragraph shall have effect where, by virtue of Part I of the 1954 Act, a payment became or becomes payable in respect of a claim holding.

(2) Subject to the following provisions of this paragraph, if either—

(a) the principal amount of the payment was or is not less than the value of the claim holding; or

(b) the payment (whatever its amount) became or becomes payable under Case D (that is to say, by virtue of section 8 of the 1954 Act, which related to cases where a claim holding had been disposed of for valuable consideration),

the claim holding shall be deemed to have been extinguished; and if the principal amount of the payment (not being a payment under Case D) was or is less than the value of the claim holding, the value of that holding shall be deemed to have been reduced by the principal amount of the payment.

(3) Sub-paragraph (2) shall apply where two or more payments under Part I of the 1954 Act were or are payable in respect of the same claim holding, with the substitution, for references to the principal amount of the payment, of references to the aggregate of the principal amounts of the payments.

(4) Where one or more relevant acts or events have occurred in relation to a claim holding (in this paragraph referred to as “the parent holding”) and any such act or event did not extend to the whole of the area of the parent holding, then, for the purposes of sub-paragraphs (1) to (3) and paragraph 10 and of the relevant provisions—

(a) the parent holding shall be treated as having been divided immediately before the time of completion, into as many separate claim holdings, with such areas, as may be necessary to ensure that, in the case of each holding, either any relevant act or event extending to the area of that holding extended to the whole of it or no relevant act or event extended to the area of that holding;

(b) the value of each of the separate holdings respectively shall be taken to have been that fraction of the value of the parent holding which then attached to the part of the area of the parent holding constituting the area of the separate holding; and

(c) the portion of the amount of any payment under Part I of the 1954 Act which, by the authority determining that amount, was or is apportioned to the area of any of the separate claim holdings shall be taken to have been a payment payable under that Part in respect of that claim holding.

(5) In this paragraph—

• “relevant act or event”, in relation to a claim holding, means an act or event by which, in accordance with the provisions of Part I of the 1954 Act, one or more payments became or become payable in respect of that claim holding, and

• “the relevant provisions” means sections 119 to 136 and paragraphs 1 to 4, 12 to 14, 16 and 18 to 20.

(6) For the purposes of this paragraph—

(a) a payment shall be treated as having become payable notwithstanding that the right to receive the payment was extinguished by section 14(2) of the 1954 Act (which enabled the Central Land Board to set off payments against liabilities in respect of development charges);

(b) any reduction of the principal amount of a payment by virtue of that subsection shall be disregarded; and

(c) where in accordance with subsection (3) of section 14 or subsection (6) of section 58 of the 1954 Act (which provided for cases of failure to apply for a payment within the appropriate period) an amount was determined as being the principal amount of a payment to which a person would have been entitled as mentioned in those subsections respectively, that payment shall be treated as if it had become due and as if the principal amount of it had been the amount so determined.

(7) Where in accordance with sub-paragraphs (1) to (6) a claim holding is deemed to have been extinguished or the value of a claim holding is deemed to have been reduced, the extinguishment or reduction, as the case may be, shall be deemed to have had effect immediately before the time of completion.

(8) References in this paragraph to the value of a claim holding are references to the value of it immediately before the time of completion.

Adjustment in respect of compensation under Part V of 1954 Act E+W

10 (1) Where compensation under Part V of the 1954 Act became or becomes payable by reference to a claim holding, then (subject to the following provisions of this paragraph) for the purposes of this Part—

(a) if the principal amount of the compensation was or is equal to the value of the claim holding at the time of completion (ascertained apart from this paragraph) the claim holding shall be deemed to have been extinguished immediately before that time;

(b) if the principal amount of the compensation was or is less than the value of the claim holding at that time (ascertained apart from this paragraph) the value of the claim holding shall be deemed to have been reduced immediately before that time by the principal amount of the compensation.

(2) Where—

(a) compensation became or becomes payable as mentioned in sub-paragraph (1), and

(b) at any time an amount became or becomes recoverable in respect of it under section 29 of the 1954 Act, as applied by section 46 of that Act, or under section 159 of the 1971 Act as applied by Schedule 24 to that Act to compensation under Part V of the 1954 Act, or under section 133 of this Act as applied by virtue of Schedule 3 to the M3 Planning (Consequential Provisions) Act 1990 to such compensation,

then, for the purposes of this Part, sub-paragraph (1) shall have effect as from that time as if the principal amount of that compensation had been reduced by a sum equal to seven-eighths of the amount which so became or becomes recoverable.

(3) Where, in the case of a claim holding (in this sub-paragraph referred to as “the parent holding”), compensation under Part V of the 1954 Act became or becomes payable in respect of depreciation of the value of an interest in land by one or more planning decisions or orders, and any such decision or order did not extend to the whole of the area of the parent holding, then for the purposes of sub-paragraphs (1) and (2) and for the purposes of the relevant provisions (within the meaning of paragraph 9(5))—

(a) the parent holding shall be treated as having been divided immediately before the time of completion into as many separate claim holdings, with such areas, as may be necessary to ensure that, in the case of each holding, either any such decision or order extending to the area of that holding extended to the whole of it or no such decision or order extended to the area of that holding;

(b) the value of each of the separate holdings respectively shall be taken to have been that fraction of the value of the parent holding which then attached to the part of the area of the parent holding constituting the area of the separate holding; and

(c) the portion of the amount of any such compensation which, by the authority determining that amount, was or is apportioned to the area of any of the separate claim holdings shall be taken to have been compensation payable under Part V of the 1954 Act in respect of that claim holding.

Marginal Citations

M3 1990 c. 11.

Adjustment of claim holdings: supplementary provisions E+W

11 (1) Where in accordance with any of paragraphs 5 to 10 a part of the benefit of an established claim constituted a separate claim holding, the interest in land to which that claim holding related—

(a) if the established claim related to the fee simple of the claim area, shall be taken to have been the fee simple of the area of the claim holding;

(b) if the established claim related to a leasehold interest, shall be taken to have been that leasehold interest in so far as it subsisted in the area of the claim holding.

(2) Where in accordance with any of those paragraphs a claim holding (in this sub-paragraph referred to as “the parent holding”) is to be treated as divided into two or more claim holdings, a person who was the holder of one of those holdings shall be treated as having been the holder of it at any time when he was the holder of the parent holding.

(3) In paragraphs 5 to 10 and this paragraph expressions used in the relevant provisions (within the meaning of paragraph 9(5)) have the same meanings as in those provisions.

(4) In paragraphs 5 to 10 and this paragraph “the holder”, in relation to a claim holding, means—

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

(b) in the case of a holding subject to a mortgage made otherwise than by way of assignment, the person who would for the time being have been entitled to the holding if it had not been mortgaged.

General provision for continuance of original unexpended balance E+W

12 Where in accordance with paragraph 2 land had an original unexpended balance of established development value, then, subject to the following provisions of this Schedule (except for paragraphs 15 and 17) and to sections 120 to 136, that land shall be taken—

(a) to have continued to have that balance until the commencement of this Act; and

(b) to continue to have that balance at all times after that commencement.

Reduction or extinguishment of balance in consequence of compensation E+W

13 (1) Where at any time compensation becomes payable under this Part, or became payable under Part II of the 1954 Act or Part VI of the 1962 Act or Part VII of the 1971 Act, in respect of depreciation of the value of an interest in land by a planning decision, then, for the purpose of determining whether that land or any part of it has or had an unexpended balance of established development value at any subsequent time—

(a) the amount of the compensation shall be deducted from the original unexpended balance of established development value of that land, and

(b) the original unexpended balance of that land or that part of it shall be treated as having been reduced or extinguished accordingly immediately before that subsequent time.

(2) Where an amount has become recoverable under section 133 in respect of the compensation specified in a compensation notice, except where, and to the extent that, payment of that amount has been remitted under section 134, for the purpose of determining any question as to the unexpended balance of established development value of any land at any subsequent time, so much (if any) of that compensation as is attributable to that land shall be treated as not having become payable, and accordingly (notwithstanding anything in sub-paragraph (1)) shall not be deducted from that balance.

Reduction or extinguishment of balance on initiation of new development E+W

14 (1) Where in accordance with paragraph 2 land had an original unexpended balance of established development value, and at any time on or after 1st July 1948 (whether before or after the commencement of this Act) any new development of that land is or was initiated, then (subject to the following provisions of this paragraph) for the purpose of determining whether that land or any part of it has or had an unexpended balance of established development value at any subsequent time—

(a) if the development relates or related only to that land, the value of that development (ascertained, with reference to that subsequent time, in accordance with the provisions of paragraph 15); or

(b) if the development relates or related to that land together with other land, so much of the value of that development (so ascertained) as is or was attributable to that land,

shall be deducted from the original unexpended balance of established development value of that land, and the original unexpended balance of that land or that part of it shall be treated as having been reduced or extinguished accordingly immediately before that subsequent time.

(2) Sub-paragraph (1) shall not apply to any land if, in respect of any interest in it, a payment has become or becomes payable under section 59 of the 1947 Act (which provided for payments in respect of certain war-damaged land).

(3) For the purposes of sub-paragraph (1) no account shall be taken of any development initiated before lst January 1955, if—

(a) a development charge under Part VII of the 1947 Act was determined to be payable in respect of it, or would have fallen to be so determined but for any exemption conferred by regulations under that Part of that Act, or by any provisions of Part VIII of that Act; or

(b) in a certificate issued under section 58 of the 1954 Act (which related to monopoly value of licensed premises) it was certified that a development charge could have been determined to be payable in respect of that development if the circumstances referred to in sub-paragraph (l)(a) or (b) of that section had not existed.

Calculation of value of previous development of land E+W

15 (1) Where for the purposes of paragraph 14 the value of any development initiated before a time referred to in that paragraph has to be ascertained with reference to that time, the value of the development shall be calculated in accordance with the provisions of this paragraph.

(2) Subject to the following provisions of this paragraph, the value shall be calculated by reference to prices current at the time in question—

(a) as if the development had not been initiated, but the land had remained in the state in which it was immediately before the development was initiated; and

(b) on the assumption that (apart from the provisions of Part III of this Act, the provisions of Part III of the 1971 Act, the provisions of Part III of the 1962 Act or the provisions of the 1947 Act, as the case may be) the development could at that time lawfully be carried out,

and shall be taken to be the difference between—

(i) the value which in those circumstances the land would have had at that time if planning permission for that development had been granted unconditionally immediately before that time, and

(ii) the value which in those circumstances the land would have had at that time if planning permission for that development had been applied for and refused immediately before that time and it could be assumed that planning permission for that development, and any other new development of that land, would be refused on any subsequent application.

(3) If the development involved the clearing of any land, the reference in sub-paragraph (2)(a) to the state of the land immediately before the development shall be construed as a reference to the state of the land immediately after the clearing of it but before the carrying out of any other operations.

(4) If the development was initiated in pursuance of planning permission granted subject to conditions, sub-paragraph (2) shall apply as if the reference to the granting of permission unconditionally were a reference to the granting of permission subject to the same conditions.

(5) If the permission referred to in sub-paragraph (4) was granted subject to conditions which consisted of, or included, a requirement expressed by reference to a specified period, the reference in that sub-paragraph to the same conditions shall be construed, in relation to the condition imposing that requirement, as a reference to a condition imposing the same requirement in respect of a period of the same duration beginning at the time in question.

(6) In the application of this paragraph to development initiated, but not completed, before the time in question, references to permission for that development shall be construed as references to permission for so much of that development as had been carried out before that time.

Reduction or extinguishment of balance on acquisition under compulsory powers E+W

16 (1) Where in the case of—

(a) a compulsory acquisition to which this paragraph applies; or

(b) a sale of an interest in land by agreement in circumstances corresponding to such an acquisition,

any of the land in which the interest acquired or sold subsists or subsisted has or had an unexpended balance of established development value immediately before the relevant date (in this paragraph referred to as “the relevant balance”) this paragraph shall have effect for the purpose of determining whether that land or any part of it has or had an unexpended balance of established development value at any subsequent time.

(2) This paragraph applies—

(a) to every compulsory acquisition of an interest in land in pursuance of a notice to treat served on or after 30th October 1958, whether before or after the commencement of this Act; and

(b) to every compulsory acquisition of an interest in land, in pursuance of a notice to treat served on or after lst January 1955 but before 30th October 1958, by an authority possessing compulsory purchase powers, being at that time a government department or local or public authority within the meaning of the M4 Acquisition of Land (Assessment of Compensation) Act 1919, or a person or body of persons to whom that Act applied as it applied to such a department or authority.

(3) Unless, immediately after the acquisition or sale, there is or was outstanding some interest (other than an excepted interest) in the land to which some person other than the acquiring authority is or was entitled, the original unexpended balance of established development value of that land shall be treated as having been extinguished immediately before the subsequent time referred to in sub-paragraph (1).

(4) If, immediately after the acquisition or sale, there is or was such an outstanding interest (other than an excepted interest) as is mentioned in sub-paragraph (3), there shall be deducted from that original balance an amount equal to any part of the relevant balance which is or was not attributable to any such outstanding interest, and the original unexpended balance of established development value of the land or the part of it in question shall be treated as having been reduced or extinguished accordingly immediately before that subsequent time.

(5) For the purposes of this paragraph any question as to the portion of the relevant balance which is or was attributable to an interest in land—

(a) in relation to a compulsory acquisition to which this paragraph applies, shall be determined in accordance with paragraph 17; and

(b) in relation to a sale of an interest in land by agreement in circumstances corresponding to such an acquisition, shall be determined in accordance with the provisions of that paragraph as those provisions would apply if the sale had been a compulsory acquisition in pursuance of a notice to treat served on the relevant date.

(6) Any reference in this paragraph or in paragraph 18 to a sale of an interest in land by agreement in circumstances corresponding to a compulsory acquisition to which this paragraph applies is a reference to a sale of it—

(a) to an authority possessing compulsory purchase powers, in pursuance of a contract made on or after 30th October 1958, whether before or after the commencement of this Act; or

(b) to such an authority possessing compulsory purchase powers as is mentioned in sub-paragraph (2)(b), in pursuance of a contract made on or after lst January 1955 but before 30th October 1958.

(7) In this paragraph—

(a) “the relevant date” means the date of service of the notice to treat or the date of the contract in pursuance of which the interest was sold, as the case may be, and

(b) “excepted interest” means the interest of any such person as is mentioned in section 20(1) of the M5 Compulsory Purchase Act 1965 (which relates to persons having no greater interest than as tenant for a year or from year to year).

Marginal Citations

M4 1919 c. 57.

M5 1965 c. 56.

Apportionment of unexpended balance of established development value E+W

17 (1) Where, in the case of a compulsory acquisition to which paragraph 16 applies, any area of the relevant land which, immediately before the relevant date, has an unexpended balance of established development value does not satisfy the following conditions, namely—

(a) that all the interests (other than excepted interests) subsisting in the area in question subsist in the whole of that area; and

(b) that any rentcharge charged on that area is charged on the whole of it,

that area shall be treated as divided into as many separate areas as may be requisite to ensure that each of those separate areas satisfies those conditions.

(2) Any area of the relevant land which has an unexpended balance of established development value and which complies with the conditions mentioned in sub-paragraph (1) is in this paragraph referred to, in relation to the interests subsisting in it, as “the relevant area”, and the following provisions of this paragraph shall have effect separately in relation to each relevant area.

(3) There shall be calculated the amount referable to the relevant area of the rent which might reasonably be expected to be reserved if the relevant land were to be let on terms prohibiting the carrying out of any new development but permitting the carrying out of any other development; and the amount so calculated is in this paragraph referred to as “the existing use rent”.

(4) If, in the case of an interest in fee simple which is subject to a rentcharge, or in the case of a tenancy, so much of the rent reserved under the rentcharge or tenancy as is referable to the relevant area exceeds the existing use rent, there shall be calculated the capital value of the right to receive, for the period of the remainder of the term of the rentcharge or tenancy, an annual payment equal to the excess; and any amount so calculated in the case of any interest is in this paragraph referred to as “the rental liability” of that interest.

(5) Where the interest in fee simple is subject to more than one rentcharge, then, for the purposes of sub-paragraph (4), in relation to any period included in the term of two or more of those rentcharges, those two or more rentcharges shall be treated as a single rentcharge charged on the relevant area for the duration of that period, with a rent reserved thereunder of an amount equal to the aggregate of so much of their respective rents as is referable to the relevant area.

(6) In the case of any interest in reversion—

(a) there shall be calculated the capital value, as at the time immediately before the relevant date, of the right to receive a sum equal to the unexpended balance of established development value of the relevant area at that time, but payable at the end of the tenancy upon the termination of which the interest in question is immediately expectant; and the amount so calculated in the case of any interest is in this paragraph referred to as “the reversionary development value” of that interest;

(b) if so much of the rent reserved under that tenancy as is referable to the relevant area exceeds the existing use rent, there shall also be calculated the capital value as at the said time of the right to receive, for the period of the remainder of the term of that tenancy, an annual payment equal to the excess;

and any amount so determined in the case of any interest is in this paragraph referred to as “the rental increment” of that interest.

(7) Where two or more interests (other than excepted interests) subsist in the relevant area, the portion of the unexpended balance of established development value of the relevant area attributable to each of those interests respectively shall be taken to be—

(a) in the case of the interest in fee simple, an amount equal to the reversionary development value of that interest, less the amount (if any) by which any rental liability of that interest exceeds any rental increment of it;

(b) in the case of a tenancy in reversion, an amount equal to the reversionary development value of that tenancy, less the aggregate of—

(i) the reversionary development value of the interest in reversion immediately expectant upon the termination of that tenancy; and

(ii) the amount (if any) by which any rental liability of that tenancy exceeds any rental increment of it;

(c) in the case of a tenancy other than a tenancy in reversion, the remainder (if any) of the said balance after the deduction of the aggregate of—

(i) the reversionary development value of the interest in reversion immediately expectant upon the termination of that tenancy; and

(ii) any rental liability of that tenancy.

(8) In relation to any compulsory acquisition to which paragraph 16 applies, where the relevant date was a date before the commencement of this Act, the previous provisions of this paragraph shall have effect with the necessary modifications.

(9) In this paragraph—

(a) “the relevant land”, in relation to a compulsory acquisition to which paragraph 16 applies, means the land in which the interest acquired subsisted or subsists;

(b) “tenancy” does not include an excepted interest;

(c) any reference to an interest or tenancy in reversion does not include an interest or tenancy in reversion immediately expectant upon the termination of an excepted interest;

(d) “the relevant date” and “excepted interest” have the same meanings as in paragraph 16; and

(e) other expressions have the same meanings as in the relevant provisions (within the meaning of paragraph 9(5)).

Reduction or extinguishment of balance in consequence of severance or injurious affection E+W

18 (1) Where in connection with—

(a) a compulsory acquisition to which paragraph 16 applies; or

(b) a sale of an interest in land by agreement in circumstances corresponding to such an acquisition,

compensation is or was payable, or an amount is or was included in the purchase price, in respect of an interest in land other than the relevant land (in this paragraph referred to as “the interest affected”), for damage sustained by reason that the relevant land is or was severed from other land held with it, or that any other land (whether held with the relevant land or not) is or was injuriously affected, then (subject to the following provisions of this paragraph) for the purpose of determining whether that other land or any part of it has or had an unexpended balance of established development value at any subsequent time—

(i) there shall be deducted from the original unexpended balance of established development value of that other land an amount calculated in accordance with the following provisions of this paragraph, and

(ii) the original unexpended balance of that land, or of the part of it in question, as the case may be, shall be treated as having been reduced or extinguished accordingly immediately before that subsequent time.

(2) In the case of an acquisition or sale in pursuance of a notice to treat served, or contract made, on or after 30th October 1958, the amount to be deducted, as mentioned in sub-paragraph (1), shall be the amount (if any) by which the compensation payable, or the amount included in the purchase price, as so mentioned exceeds or exceeded the compensation which would have been so payable, or the amount which would have been so included, if the extent of the damage sustained in respect of the other land in question had fallen to be ascertained on the assumption that planning permission would not be granted for any new development of that land, but would be granted for any development of it other than new development.

(3) Sub-paragraphs (4) to (6) shall have effect with respect to any such acquisition or sale as is mentioned in sub-paragraph (1), being an acquisition or sale in pursuance of a notice to treat served, or contract made, before 30th October 1958.

(4) No such deduction as is mentioned in sub-paragraph (1) shall be made in the case of such an acquisition or sale as is mentioned in sub-paragraph (3) unless—

(a) where it was a compulsory acquisition, an amount was paid by way of compensation as mentioned in sub-paragraph (1);

(b) the amount which was so paid, or, in the case of a sale by agreement, was included in the purchase price as mentioned in sub-paragraph (1), (“the sum paid for severance or injurious affection”) exceeded the loss of immediate value of the interest affected; and

(c) where it was a sale by agreement, the other land in question was held with the relevant land.

(5) Subject to sub-paragraph (4), the amount to be deducted as mentioned in sub-paragraph (1), in the case of such an acquisition or sale as is mentioned in sub-paragraph (3), shall be the amount by which the sum paid for severance or injurious affection exceeded the loss of immediate value of the interest affected.

(6) This sub-paragraph shall have effect, in the case of such an acquisition or sale as is mentioned in sub-paragraph (3), where so much (if any) of the sum paid for severance or injurious affection as was attributable to the loss of immediate value of the interest affected was less than the depreciation in restricted value of that interest, that is to say—

(a) the amount of the difference shall be ascertained; and

(b) for the purpose of determining whether, at any time after the acquisition or sale, the land in which the interest affected subsisted or any part of it had or has an unexpended balance of established development value (whether or not that land or any part of it would apart from this sub-paragraph have had an original unexpended balance of established development value) a claim holding with an area consisting of that land and a value equal to seven-eighths of the amount of the difference shall be deemed to have subsisted immediately after the time when the adjustment of claim holdings was completed.

(7) In this paragraph—

• “the loss of immediate value” means the amount (if any) by which the difference in the value of the interest affected, immediately before and immediately after the acquisition or sale, exceeded the loss of development value;

• “the loss of development value” means the amount (if any) by which the value of the interest affected immediately before the acquisition or sale, if calculated on the assumption that, until such time as the land in which that interest subsisted might reasonably be expected to become ripe for new development, no use whatever could be made of that land, would have exceeded the value of that interest immediately after the acquisition or sale if calculated on the like assumption;

• “the depreciation in restricted value” means the amount (if any) by which the value of the interest affected, immediately after the acquisition or sale, would have been less than the value of that interest immediately before the acquisition or sale, if both values were calculated on the assumption that planning permission would not be granted for any new development of that land, but would be granted for any development of it other than new development;

• “the relevant land”, in relation to an acquisition or sale, means the land in which the interest acquired or sold subsisted.

Supplementary provisions as to deductions from original balance E+W

19 (1) Where, immediately after the time when the adjustment of claim holdings was completed, any land taken as a whole had an original unexpended balance of established development value, and at any later time (whether before or after the commencement of this Act) an act or event occurs or has occurred in relation to part of that land such that, in accordance with any of the provisions of section 119 and paragraphs 1 to 4, 12 to 14, 16 and 18, an amount is required to be deducted from the original unexpended balance of that part of that land for the purpose of determining whether it has or had an unexpended balance of established development value at any subsequent time, then (without prejudice to the operation of any of those provisions with respect to any part of the land taken separately) the land taken as a whole shall be treated as not having (or as not having had) any such balance at that subsequent time.

(2) Where in accordance with those provisions an amount is required to be deducted from the original unexpended balance of established development value of any land, there shall be attributed to the various parts of that land so much of that amount as might reasonably be expected to have been attributed to it if the authority determining the amount had been required to apportion it between those parts in accordance with the same principles as applied to its determination.

(3) Where two or more acts or events occur or have occurred in relation to the same land (whether before or after the commencement of this Act) such that, in accordance with those provisions, an amount is required to be deducted from the original unexpended balance of established development value of that land or any part of it, those provisions shall apply cumulatively, and the requisite deduction from the original unexpended balance of established development value of that land shall be made by reference to each of those acts or events.

Provision of information relating to unexpended balance E+W

20 (1) Subject to this paragraph, the Secretary of State shall, on application being made to him by any person, and may if he thinks fit without any such application, issue a certificate in the prescribed form with respect to any land stating whether any of that land had an original unexpended balance of established development value, and, if so—

(a) giving a general statement of what was taken by the Central Land Board, for the purposes of Part Vl of the 1947 Act, to be the state of that land on 1st July 1948; and

(b) specifying (subject to any outstanding claims under Part I or Part V of the 1954 Act) the amount of that original balance.

(2) Any such certificate issued with respect to any land may, if the Secretary of State thinks fit, contain additional information with respect to acts or events in consequence of which, in accordance with any of the provisions of section 119 and paragraphs 1 to 4, 12 to 14, 16 and 18, an amount is required to be deducted from the original unexpended balance of established development value of any of that land.

(3) Where, at any time on or after lst January 1955 (whether before or after the commencement of this Act), a notice to treat has been served with a view to the compulsory acquisition of an interest in land by an authority possessing compulsory purchase powers, that authority may apply to the Secretary of State for, and shall be entitled to the issue of, a certificate showing the unexpended balance of established development value (if any) of any of that land immediately before the service of that notice.

(4) Where the issue of a certificate under this paragraph with respect to any land involves a new apportionment, or, in the case of a certificate under sub-paragraph (3), involves the calculation of a deduction from the original unexpended balance of established development value by virtue of paragraph 14, then—

(a) except in the case of a certificate under sub-paragraph (3), or of a certificate which the Secretary of State proposes to issue without any application being made for it, the certificate shall not be issued otherwise than on the application of a person who is for the time being entitled to an interest in that land;

(b) before issuing the certificate, the Secretary of State shall give notice in writing to any person entitled to an interest in land appearing to him to be an interest which will be substantially affected by the apportionment or calculation, giving particulars of the proposed apportionment or calculation, and stating that objections or other representations with respect to it may be made to the Secretary of State within the period of 30 days from the date of the notice; and

(c) the certificate shall not be issued before the end of that period, and if within that period an objection to the proposed apportionment or calculation has been made by any person to whom notice has been given under paragraph (b), or by any other person who establishes that he is entitled to an interest in land which is substantially affected by the apportionment or calculation, and that objection has not been withdrawn, sub-paragraph (5) shall have effect.

(5) Where by virtue of sub-paragraph (4)(c) this sub-paragraph is to have effect, then—

(a) if within a further period of 30 days the person by whom any such objection was made requires the dispute to be referred to the Lands Tribunal, the dispute shall be so referred, and the certificate shall not be issued until either the Tribunal has decided the matter or the reference to the Tribunal has been withdrawn;

(b) the certificate may be issued before the end of the said further period if every such objection has been withdrawn;

(c) the certificate shall be issued at the end of that further period, notwithstanding that every such objection has not been withdrawn, if no requirement has within that period been made under paragraph (a).

(6) Where, on a reference to the Lands Tribunal under this paragraph, it is shown that a new apportionment relates partly to the same matters as a previous apportionment, and is consistent with that previous apportionment in so far as it relates to those matters, the Tribunal shall not vary the new appointment in such a way as to be inconsistent with the previous apportionment in so far as it relates to those matters.

(7) A certificate under sub-paragraph (3) shall be conclusive evidence of the unexpended balance shown in it; and a certificate under sub-paragraph (1) shall be sufficient proof of any facts stated in it unless the contrary is shown.

(8) An application for a certificate under this paragraph shall be made in such form and manner as may be prescribed, and shall be accompanied by sufficient particulars (including a map if necessary) to enable the land to be identified, and, where a new apportionment will be involved, particulars of the nature of the applicant’s interest, and such information as to the nature of any other interest in the land, and as to the name and address of the person entitled to that other interest, as may be known to the applicant.

(9) On any application under sub-paragraph (1) the applicant shall pay in the prescribed manner a fee of 25 pence, and, if the application involves a new apportionment, the certificate shall not be issued until the applicant has paid in the prescribed manner a further fee of 75 pence.

(10) In this paragraph “new apportionment” means an apportionment which relates wholly or partly to any matter to which no previous apportionment related.