Town and Country Planning Act 1954

5 Payment where land compulsorily acquired or sold at price wholly or partly excluding development value (Case B)

(1) The holder of a claim holding shall, subject to the provisions of this Part of this Act, be entitled by virtue of this section to a payment in respect of that holding if, at a time when he was entitled in the same capacity both to the claim holding and to the interest in land to which the holding related, that interest—

(a) was compulsorily acquired by, or sold to, a public authority possessing compulsory purchase powers, in such circumstances that the compensation payable in respect of the acquisition of the interest, or the price at which the interest was sold, fell short of the sum of the value of the holding and the existing use value of the interest; or

(b) was sold, otherwise than to a public authority possessing compulsory purchase powers, at a price which fell short of the sum of the value of the holding and the restricted value of the interest.

(2) No payment shall be made by virtue of this section by reason that an interest in land was compulsorily acquired or sold as mentioned in paragraph (a) of the preceding subsection if the compensation payable in respect of the acquisition thereof, or the price at which the interest was sold—

(a) was calculated in accordance with the provisions of Part II of the Town and Country Planning Act, 1944 (which provided for compensation based on market value, by reference to prices current at the thirty-first day of March, nineteen hundred and thirty-nine); or

(b) was compensation calculated on the basis of equivalent reinstatement, or a price agreed by reference to compensation so calculated.

(3) No payment shall be made by virtue of this section unless the transaction in question—

(a) if it was a compulsory acquisition, or a sale to a public authority possessing compulsory purchase powers, was effected in pursuance of a notice to treat served, or a contract made, on or after the sixth day of August, nineteen hundred and forty-seven, and before the commencement of this Act;

(b) if it was a sale otherwise than to a public authority possessing compulsory purchase powers, was effected in pursuance of a contract made on or after the said sixth day of August and before the eighteenth day of November, nineteen hundred and fifty-two, or in pursuance of an option granted on or after the first day of July, nineteen hundred and forty-eight, and before the said eighteenth day of November,

and unless the acquisition or sale has been completed (whether before or after the commencement of this Act) at the time when an application is made to the Central Land Board for the payment.

(4) The principal amount of a payment made by virtue of this section in respect of a claim holding—

(a) in a case falling within paragraph (a) of subsection (1) of this section, shall be the value of the holding, reduced by any amount by which the compensation or sale- price exceeded the existing use value of the interest;

(b) in a case falling within paragraph (b) of that subsection, shall be the value of the holding, reduced by any amount by which the sale price exceeded the restricted value of the interest.

(5) In the application of the preceding provisions of this section to a case where the interest compulsorily acquired or sold extended to land not included in the area of the claim holding—

(a) references to the compensation payable in respect of the acquisition of the interest, or to the existing use value of the interest, shall be construed respectively as references to so much of that compensation or value as might reasonably be expected to have been attributed to the interest in so far as it subsisted in land included in the area of the claim holding;

(b) references to the sale price shall be construed as references to so much of that price as the parties to the sale may reasonably be supposed to have attributed to the interest in so far as it subsisted in land so included ; and

(c) references to the restricted value of the interest shall be construed as references to the restricted value of the interest in so far as it subsisted in land so included.

(6) In the application of the preceding provisions of this section to a case where the interest compulsorily acquired or sold did not extend to the whole area of the claim holding, references to the value of the claim holding shall be construed as references to that fraction of that value which attaches to the part of the area of the claim holding which was comprised in the acquisition or sale.

(7) Where an interest in land is the subject of a compulsory acquisition or sale such as is mentioned in subsection (3) of this section and—

(a) on or after the first day of July, nineteen hundred and forty-eight, but before the date of the compulsory acquisition or sale, another interest had become merged with that interest; and

(b) the person entitled to the interest compulsorily acquired or sold was at the date of the compulsory acquisition or sale entitled to a claim holding or claim holdings which related to either or each of the merged interests,

this section shall apply as if those interests had not merged but had been separately acquired from or sold by the person entitled to the interest acquired or sold; and the compensation payable in respect of the compulsory acquisition or, as the case may be, the sale price shall be treated as apportioned between those interests accordingly:

Provided that nothing in this subsection shall prejudice the operation of the proviso to subsection (4) of the next following section.

(8) Where two or more persons are jointly entitled to a claim holding, then, for the purpose of ascertaining whether or not those persons are entitled to a payment in respect of the holding by virtue of this section, any act or event by virtue of which the interest of any one or more of those persons in any of the area of the claim holding passed to any other one or more of those persons shall be deemed not to have occurred.

(9) The provisions of this and the next following section shall apply in relation to any interest in land vested in the British Transport Commission by subsection (2) of section forty-five of the Transport Act, 1947 (which relates to the acquisition of road haulage undertakings by the Commission) as if that vesting were a compulsory acquisition of that interest and as if the notice of acquisition served under Part III of that Act by virtue of which the interest was so vested were a notice to treat.

(10) Without prejudice to section ten of this Act, paragraph (b) of subsection (1) of this section shall not apply in relation to a sale in consideration wholly or partly of a rentcharge.

(11) In the following provisions of this Act references to a payment under Case B are references to a payment by virtue of this section.