Town and Country Planning Act 1954

31 Compensation to include unexpended balance of established development value

(1) Where, in the case of a compulsory acquisition to which this Part of this Act applies, compensation on the basis of existing use is payable in respect of the acquisition of the relevant interest, and any of the relevant land has an unexpended balance of established development value at the time immediately before the service of the notice to treat, then, subject to section thirty-three of this Act, there shall be added to the compensation payable in respect of the acquisition of the relevant interest apart from the provisions of this section—

(a) where the relevant interest is the only interest (other than excepted interests) subsisting at that time in any of the relevant land which has such a balance, an amount equal to that balance at that time less, in a case when the relevant interest is subject to a rentcharge, any rental liability of that interest within the meaning of the Fifth Schedule to this Act; or

(b) where the relevant interest is one of two or more interests (other than excepted interests) so subsisting, an amount equal to so much of that balance at that time as is ascertained in accordance with the provisions of the said Fifth Schedule to be attributable to the relevant interest:

Provided that no payment shall be made by virtue of this section if the relevant interest is a tenancy granted on such terms that, immediately before the service of the notice to treat, the person entitled to that interest is prohibited from carrying out any new development of the relevant land.

(2) Regulations made under this section shall provide for requiring persons entitled to interests in the relevant land, other than the relevant interest and any excepted interest, to be notified in cases where it is proposed, by virtue of this section, to pay compensation in excess of compensation on the basis of existing use, and for enabling such persons, in case of dispute as to the application of this section, to require the dispute to be referred to the Lands Tribunal for determination by that Tribunal.