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Planning and Compulsory Purchase Bill


Planning and Compulsory Purchase Bill
Part 7 — Compulsory purchase

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Loss payments

 74    Basic loss payment

     (1)    After section 33 of the Land Compensation Act 1973 (c. 26) (home loss

payments for certain caravan dwellers) there is inserted the following

section—

5

“Other loss payments

       33A  Basic loss payment

           (1)           This section applies to a person—

                  (a)                 if he has a qualifying interest in land,

                  (b)                 if the interest is acquired compulsorily, and

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                  (c)                 to the extent that he is not entitled to a home loss payment in

respect of any part of the interest.

           (2)           A person to whom this section applies is entitled to payment of

whichever is the lower of the following amounts—

                  (a)                 7.5% of the value of his interest;

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                  (b)                 £75,000.

           (3)           A payment under this section must be made by the acquiring authority.

           (4)           An interest in land is a qualifying interest if it is a freehold interest or

an interest as tenant and (in either case) it subsists for a period of not

less than one year ending with whichever is the earliest of—

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                  (a)                 the date on which the acquiring authority takes possession of

the land under section 11 of the Compulsory Purchase Act 1965

(entry to take possession of land);

                  (b)                 the date on which the acquiring authority enters the land if it

proceeds under Schedule 3 to that Act;

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                  (c)                 the vesting date (within the meaning of the Compulsory

Purchase (Vesting Declarations) Act 1981) if a declaration is

made under section 4 of that Act (general vesting declaration);

                  (d)                 the date on which compensation is agreed between the person

and the acquiring authority;

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                  (e)                 the date on which the amount of compensation is determined

by the Lands Tribunal.

           (5)           The compulsory acquisition of an interest in land includes acquisition

of the interest in consequence of the service of—

                  (a)                 a purchase notice under section 137 of the Town and Country

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Planning Act 1990 (right to require purchase of certain

interests);

                  (b)                 a notice under section 150 of that Act (purchase of blighted

land).

           (6)           The value of an interest is its value for the purpose of deciding the

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amount of compensation payable in respect of the acquisition; but this

is subject to subsections (7) and (8).

 

 

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Part 7 — Compulsory purchase

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           (7)           If an interest consists partly of a dwelling in respect of which the person

is entitled to a home loss payment the value of the interest is the value

of the whole interest less the value of so much of the interest as is

represented by the dwelling.

           (8)           If rule (5) of section 5 of the Land Compensation Act 1961 (equivalent

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reinstatement) applies for the purpose of assessing the amount of

compensation the value of the interest is nil.”

     (2)    Section 33A of the Land Compensation Act 1973 (c. 26) (as inserted by

subsection (1) above) does not apply in relation to the acquisition of any

interest in land by means of a compulsory purchase order made or made in

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draft before the commencement of this section.

 75    Occupier’s loss payment

     (1)    After section 33A of the Land Compensation Act 1973 (inserted by section 74

of this Act) there are inserted the following sections—

       “33B  Occupier’s loss payment: agricultural land

15

           (1)           This section applies to a person if—

                  (a)                 he has a qualifying interest in land for the purposes of section

33A,

                  (b)                 the land is agricultural land,

                  (c)                 the interest is acquired compulsorily, and

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                  (d)                 he occupied the land for the period specified in section 33A(4).

           (2)           A person to whom this section applies is entitled to a payment of

whichever is the greatest of the following amounts—

                  (a)                 2.5% of the value of his interest;

                  (b)                 the land amount;

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                  (c)                 the buildings amount.

           (3)           But the maximum amount which may be paid to a person under this

section in respect of an interest in land is £25,000.

           (4)           A payment under this section must be made by the acquiring authority.

           (5)           The value of an interest is its value for the purpose of deciding the

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amount of compensation payable in respect of the acquisition; but this

is subject to subsections (6) and (7).

           (6)           If an interest consists partly of a dwelling in respect of which the person

is entitled to a home loss payment the value of the interest is the value

of the whole interest less the value of so much of the interest as is

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represented by the dwelling.

           (7)           If rule (5) of section 5 of the Land Compensation Act 1961 (equivalent

reinstatement) applies for the purpose of assessing the amount of

compensation the value of the interest is nil.

           (8)           The land amount is the greater of £300 and the amount found in

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accordance with the following Table—

 

 

Planning and Compulsory Purchase Bill
Part 7 — Compulsory purchase

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Area of the land

Amount per hectare

 
 

Not exceeding 100 hectares

£100 per hectare or part of

 
  

a hectare

 
 

Exceeding 100 hectares

     (a)    £100 per hectare

 
  

for the first 100

 

5

  

hectares;

 
  

     (b)    £50 per hectare for

 
  

the next 300

 
  

hectares or part of

 
  

a hectare.

 

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           (9)           The buildings amount is £25 per square metre (or part of a square

metre) of the gross floor space of any buildings on the land.

           (10)          The gross floor space must be measured externally.

       33C  Occupier’s loss payment: other land

           (1)           This section applies to a person if—

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                  (a)                 he has a qualifying interest in land for the purposes of section

33A,

                  (b)                 the land is not agricultural land,

                  (c)                 the interest is acquired compulsorily, and

                  (d)                 he occupied the land for the period specified in section 33A(4).

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           (2)           A person to whom this section applies is entitled to a payment of

whichever is the greatest of the following amounts—

                  (a)                 2.5% of the value of his interest;

                  (b)                 the land amount;

                  (c)                 the buildings amount.

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           (3)           But the maximum amount which may be paid to a person under this

section in respect of an interest in land is £25,000.

           (4)           A payment under this section must be made by the acquiring authority.

           (5)           The value of an interest is its value for the purpose of deciding the

amount of compensation payable in respect of the acquisition; but this

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is subject to subsections (6) and (7).

           (6)           If an interest consists partly of a dwelling in respect of which the person

is entitled to a home loss payment the value of the interest is the value

of the whole interest less the value of so much of the interest as is

represented by the dwelling.

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           (7)           If rule (5) of section 5 of the Land Compensation Act 1961 (equivalent

reinstatement) applies for the purpose of assessing the amount of

compensation the value of the interest is nil.

           (8)           The land amount is the greater of—

                  (a)                 £2,500;

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                  (b)                 £2.50 per square metre (or part of a square metre) of the area of

the land.

           (9)           But if only part of land in which a person has an interest is acquired, for

the figure specified in subsection (8)(a) there is substituted £300.

           (10)          The buildings amount is £25 per square metre (or part of a square

5

metre) of the gross floor space of any buildings on the land.

           (11)          The gross floor space must be measured externally.”

     (2)    Sections 33B and 33C of the Land Compensation Act 1973 (c. 26) (as inserted by

subsection (1) above) do not apply in relation to the acquisition of any interest

in land by means of a compulsory purchase order made or made in draft before

10

the commencement of this section.

 76    Loss payments: exclusions

     (1)    After section 33C of the Land Compensation Act 1973 (inserted by section 75 of

this Act) there is inserted the following section—

       “33D  Loss payments: exclusions

15

           (1)           This section applies to a person if—

                  (a)                 he is a person to whom section 33A, 33B or 33C applies,

                  (b)                 a notice falling within subsection (4) has been served on him in

relation to the land mentioned in that section,

                  (c)                 at the relevant time the notice has effect or is operative, and

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                  (d)                 he has failed to comply with any requirement of the notice.

           (2)           This section also applies to a person if—

                  (a)                 he is a person to whom section 33A, 33B or 33C applies,

                  (b)                 a copy of an order falling within subsection (5) has been served

on him in relation to the land mentioned in that section, and

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                  (c)                 the order has not been quashed on appeal.

           (3)           No payment may be made under section 33A, 33B or 33C to a person to

whom this section applies.

           (4)           These are the notices—

                  (a)                 notice under section 215 of the Town and Country Planning Act

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1990 (power to require proper maintenance of land);

                  (b)                 notice under section 189 of the Housing Act 1985 (requirement

to repair dwelling etc. unfit for human habitation);

                  (c)                 notice under section 190 of that Act (requirement to repair

dwelling etc. in state of disrepair);

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                  (d)                 notice under section 48 of the Planning (Listed Buildings and

Conservation Areas) Act 1990 (repairs notice prior to

compulsory notice of acquisition of listed building).

           (5)           These are the orders—

                  (a)                 an order under section 264 of the Housing Act 1985 (closure of

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dwelling etc. unfit for human habitation);

                  (b)                 an order under section 265 of that Act (demolition of dwelling

etc. unfit for human habitation).

 

 

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Part 7 — Compulsory purchase

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           (6)           The relevant time is the time at which the compulsory purchase order

in relation to the person’s interest in the land—

                  (a)                 is confirmed, in the case of an order falling within section 2(2) of

the Acquisition of Land Act 1981 (procedure for authorisation);

                  (b)                 is made, in the case of an order falling within section 2(3) of that

5

Act.

           (7)           The Secretary of State may by regulations amend subsections (4) and

(5).”

     (2)    Section 33D of the Land Compensation Act 1973 (c. 26) (as inserted by

subsection (1) above) does not apply in relation to a notice or order specified in

10

subsection (4) or (5) of that section if the notice or copy of the order was served

on a person to whom that section applies before the commencement of this

section.

 77    Loss payments: supplementary

After section 33D of the Land Compensation Act 1973 (inserted by section 76

15

of this Act) there are inserted the following sections—

       “33E  Claims

           (1)           This section applies for the purposes of sections 33A to 33C.

           (2)           A claim for payment must be made in writing to the acquiring

authority.

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           (3)           The claim must give such particulars as the authority may reasonably

require for the purpose of deciding—

                  (a)                  whether a payment is to be made;

                  (b)                  the amount of any such payment.

           (4)           For the purposes of the Limitation Act 1980 a person’s right of action to

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recover a payment must be taken to have accrued—

                  (a)                 in the case of a claim under section 33A on the last day of the

period specified in subsection (4) of that section;

                  (b)                 in the case of a claim under section 33B or 33C on the date of his

displacement from the land.

30

       33F  Insolvency

           (1)           This section applies if a person is entitled to a payment under section

33A, 33B or 33C but before a claim is made under section 33E

insolvency proceedings are started in relation to the person.

           (2)           Any of the following may make a claim instead of the person

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mentioned in subsection (1)—

                  (a)                 a receiver, trustee in bankruptcy or the official receiver in the

case of an individual;

                  (b)                 an administrator, administrative receiver, liquidator or

provisional liquidator or the official receiver in the case of a

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company or a partnership.

           (3)           Insolvency proceedings are—

 

 

Planning and Compulsory Purchase Bill
Part 7 — Compulsory purchase

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                  (a)                 proceedings in bankruptcy;

                  (b)                 proceedings under the Insolvency Act 1986 for the winding up

of a company or an unregistered company (including voluntary

winding up of a company under Part 4 of that Act);

                  (c)                 proceedings for the winding up of a partnership.

5

       33G  Death

           (1)           This section applies if a person is entitled to a payment under section

33A, 33B or 33C but before a claim is made under section 33E the person

dies (the deceased).

           (2)           A claim may be made by a person who—

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                  (a)                 occupied the land for a period of not less than one year ending

with the date on which the deceased is displaced from the land,

and

                  (b)                 is entitled to benefit on the death of the deceased by virtue of a

ground mentioned in subsection (3).

15

           (3)           The grounds are—

                  (a)                 a testamentary disposition;

                  (b)                 the law of intestate succession;

                  (c)                 the right of survivorship between joint tenants.

       33H  Agricultural land: dual entitlement

20

           (1)           This section applies if a person is entitled in respect of the same interest

in agricultural land to a payment both—

                  (a)                 under section 33B of this Act, and

                  (b)                 by virtue of section 12(1) of the Agriculture (Miscellaneous

Provisions) Act 1968 (additional payments in consequence of

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compulsory acquisition of agricultural holding).

           (2)           Payment may be made in respect of only one entitlement.

           (3)           If the person makes a claim under both provisions he must be paid in

respect of the entitlement which produces the greater amount.

       33I  Payment

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           (1)           Any dispute as to the amount of a payment to be made under section

33A, 33B or 33C must be determined by the Lands Tribunal.

           (2)           The acquiring authority must make any payment required by section

33A not later than whichever is the latest of the following dates—

                  (a)                 the last day of the period specified in section 33A(4);

35

                  (b)                 the last day of the period of three months beginning with the

day the claim is made;

                  (c)                 the day on which the amount of the payment is determined.

           (3)           The authority must make any payment required by section 33B or 33C

not later than whichever is the latest of the following dates—

40

                  (a)                 the date the person is displaced from the land;

 

 

Planning and Compulsory Purchase Bill
Part 7 — Compulsory purchase

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                  (b)                 the last day of the period of three months beginning with the

day the claim is made;

                  (c)                 the day on which the amount of the payment is determined.

           (4)           If paragraph (c) of subsection (2) or (3) applies the authority may at any

time make a payment in advance to the person entitled to a payment

5

(the claimant).

           (5)           If when the value of the interest is agreed or determined the amount of

a payment made under subsection (4) differs from the payment

required by section 33A, 33B or 33C—

                  (a)                 the amount by which the advance payment exceeds the

10

payment required must be repaid by the claimant to the

authority;

                  (b)                 the amount by which the payment required exceeds the

advance payment must be paid by the authority to the claimant.

           (6)           The acquiring authority must pay interest on the amount required to be

15

paid at the rate prescribed by regulations under section 32 of the Land

Compensation Act 1961.

           (7)           Interest accrues from the date specified in paragraph (a) of subsection

(2) or (3) (as the case may be).

           (8)           The authority may, at the request of the person entitled to the payment,

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make a payment on account of the interest mentioned in subsection (6).

       33J  Acquisition by agreement

           (1)           This section applies if—

                  (a)                 an interest in land which is a qualifying interest for the purpose

of section 33A is acquired by agreement by an authority which

25

has power to acquire the interest compulsorily, and

                  (b)                 the interest is acquired from a person who would be entitled to

a payment under section 33A, 33B or 33C if the interest is

acquired compulsorily.

           (2)           The authority may make a payment to the person of an amount equal

30

to the amount they would be required to pay if the interest is acquired

compulsorily.

       33K  Regulations

           (1)           This section applies for the purposes of sections 33A to 33I.

           (2)           The Secretary of State may by regulations substitute for any amount or

35

percentage figure specified in these sections such other amount or

percentage figure (as the case may be) as he thinks fit.

           (3)           A power to make regulations must be exercised by statutory

instrument subject to annulment in pursuance of a resolution of either

House of Parliament.

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           (4)           In relation to Wales—

                  (a)                 a power to make regulations conferred on the Secretary of State

must be construed as a power conferred on the National

Assembly for Wales;

 

 

 
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