Part IV Compulsory Purchase

Assessment of compensation

48 Compensation in respect of agricultural holdings.

1

F1Subject to subsection (1A) below this section has effect where in pursuance of any enactment providing for the acquisition or taking of possession of land compulsorily an acquiring authority—

a

acquire the interest of the landlord in an agricultural holding or any part of it; or

b

acquire the interest of the tenant in, or take possession of, an agricultural holding or any part of it.

F11A

This section does not have effect where the tenancy of the agricultural holding is a tenancy to which, by virtue of section 4 of the Agricultural Tenancies Act 1995, the Agricultural Holdings Act 1986 does not apply.

2

In assessing the compensation payable by the acquiring authority to the landlord in connection with any such acquisition of an interest as is mentioned in subsection (1)(a) above—

a

there shall be disregarded any right of the landlord to serve a notice to quit, and any notice to quit already served by the landlord, which would not be or would not have been effective if—

i

in F2Case B in Part I of Schedule 3 to the Agricultural Holdings Act 1986 (land required for non-agricultural use for which planning permission has been granted etc.) the reference to the land being required did not include a reference to its being required by an acquiring authority; and

ii

in F3section 27(3)(f) of that Act (proposed termination of tenancy for purpose of land’s being used for non-agricultural use not falling within F4the said Case B the reference to the land’s being used did not include a reference to its being used by an acquiring authority; and

b

if the tenant has quitted the holding or any part of it by reason of a notice to quit which is to be so disregarded, it shall be assumed that he has not done so.

3

In assessing the compensation payable by the acquiring authority to the tenant in connection with any such acquisition of an interest or taking of possession of land as is mentioned in subsection (1)(b) above (hereafter referred to as “the tenant’s compensation”), there shall be disregarded any right of the landlord to serve a notice to quit, and any notice to quit already served by the landlord, which would not be or would not have been effective if the said F5Case B and section 27(3)(f) were construed in accordance with subsection (2)(a)(i) and (ii) above.

C14

Section 42 of the M1Agriculture (Miscellaneous Provisions) Act 1968 (tenant’scompensation to be assessed without regard to his prospects of remaining in possession after contractual date) and section 15(1) of that Act (effect on tenant’s compensation of provision enabling landlord to resume possession for non-agricultural use) shall cease to have effect.

C25

The tenant’s compensation shall be reduced by an amount equal to any payment which the acquiring authority are liable to make to him, in respect of the acquisition or taking of possession in question, under section 12 of the said Act of 1968 (additional payments by acquiring authority in circumstances described in subsection (1)(b) above).

6

If the tenant’s compensation as determined in accordance with subsections (3) to (5) above is less than it would have been if those subsections had not been enacted, it shall be increased by the amount of the deficiency.

F66A

In assessing the tenant’s compensation no account shall be taken of any benefit which might accrue to the tenant by virtue of section 60(2)(b) of the Agricultural Holdings Act 1986 (additional payments by landlord for distrubance); and in this subsection the reference to the said section 60(2)(b) does not include a reference to it as applied by section 12 of the Agricultural (Miscellaneous Provisions) Act 1968.

7

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