Leasehold Reform, Housing and Urban Development Act 1993

Termination of acquisition procedures E+W

28 Withdrawal from acquisition by participating tenants. E+W

(1) At any time before a binding contract is entered into in pursuance of the initial notice, the participating tenants may withdraw that notice by the giving of a notice to that effect under this section (“a notice of withdrawal”).

(2) A notice of withdrawal must be given—

(a) to the nominee purchaser;

(b) to the reversioner in respect of the specified premises; and

(c) to every other relevant landlord who is known or believed by the participating tenants to have given to the nominee purchaser a notice under paragraph 7(1) or (4) of Schedule 1;

and, if by virtue of paragraph (c) a notice of withdrawal falls to be given to any person falling within that paragraph, it shall state that he is a recipient of the notice.

(3) The nominee purchaser shall, on receiving a notice of withdrawal, give a copy of it to every relevant landlord who—

(a) has given to the nominee purchaser such a notice as is mentioned in subsection (2)(c); and

(b) is not stated in the notice of withdrawal to be a recipient of it.

(4) Where a notice of withdrawal is given by the participating tenants under subsection (1)—

(a) those persons, and

(b) (subject to subsection (5)) every other person who is not a participating tenant for the time being but has at any time been such a tenant,

shall be liable—

(i) to the reversioner, and

(ii) to every other relevant landlord,

for all relevant costs incurred by him in pursuance of the initial notice down to the time when the notice of withdrawal or a copy of it is given to him in accordance with subsection (2) or (3).

(5) A person falling within paragraph (b) of subsection (4) shall not be liable for any costs by virtue of that subsection if—

(a) the lease in respect of which he was a participating tenant has been assigned to another person; and

(b) that other person has become a participating tenant in accordance with section 14(4);

and in paragraph (a) above the reference to an assignment shall be construed in accordance with section 14(10).

(6) Where any liability for costs arises under subsection (4)—

(a) it shall be a joint and several liability of the persons concerned; and

(b) the nominee purchaser shall not be liable for any costs under section 33.

(7) In subsection (4) “relevant costs”, in relation to the reversioner or any other relevant landlord, means costs for which the nominee purchaser would (apart from subsection (6)) be liable to that person under section 33.

29 Deemed withdrawal of initial notice. E+W

(1) Where, in a case falling within paragraph (a) of subsection (1) of section 22—

(a) no application for an order under that subsection is made within the period specified in subsection (2) of that section, or

(b) such an application is so made but is subsequently withdrawn,

the initial notice shall be deemed to have been withdrawn—

(i) (if paragraph (a) above applies) at the end of that period, or

(ii) (if paragraph (b) above applies) on the date of the withdrawal of the application.

(2) Where—

(a) in a case to which subsection (1) of section 24 applies, no application under that subsection is made within the period specified in subsection (2) of that section, or

(b) in a case to which subsection (3) of that section applies, no application for an order under subsection (4) of that section is made within the period specified in subsection (5) of that section,

the initial notice shall be deemed to have been withdrawn at the end of the period referred to in paragraph (a) or (b) above (as the case may be).

(3) Where, in a case falling within paragraph (a) or (b) of subsection (1) of section 25, no application for an order under that subsection is made within the period specified in subsection (4) of that section, the initial notice shall be deemed to have been withdrawn at the end of that period.

(4) Where, in a case to which subsection (5) of section 25 applies, no application for an order under subsection (6) of that section is made within the period specified in subsection (7) of that section, the initial notice shall be deemed to have been withdrawn at the end of that period.

(5) The following provisions, namely—

(a) section 15(10),

(b) section 16(8),

(c) section 20(3),

(d) section 24(4)(c), and

(e) section 25(6)(c),

also make provision for a notice under section 13 to be deemed to have been withdrawn at a particular time.

(6) Where the initial notice is deemed to have been withdrawn at any time by virtue of any provision of this Chapter, subsections (4) and (5) of section 28 shall apply for the purposes of this section in like manner as they apply where a notice of withdrawal is given under that section, but as if the reference in subsection (4) of that section to the time when a notice or copy is given as there mentioned were a reference to the time when the initial notice is so deemed to have been withdrawn.

(7) Where the initial notice is deemed to have been withdrawn by virtue of section 15(10) or 16(8)—

(a) the liability for costs arising by virtue of subsection (6) above shall be a joint and several liability of the persons concerned; and

(b) the nominee purchaser shall not be liable for any costs under section 33.

(8) In the provisions applied by subsection (6), “relevant costs”, in relation to the reversioner or any other relevant landlord, means costs for which the nominee purchaser is, or would (apart from subsection (7)) be, liable to that person under section 33.

30 Effect on initial notice or subsequent contract of institution of compulsory acquisition procedures. E+W

(1) A notice given under section 13 shall be of no effect if on the relevant date—

(a) any acquiring authority has, with a view to the acquisition of the whole or part of the specified premises for any authorised purpose—

(i) served notice to treat on any relevant person, or

(ii) entered into a contract for the purchase of the interest of any such person in the premises or part of them, and

(b) the notice to treat or contract remains in force.

(2) In subsection (1) “relevant person”, in relation to the specified premises, means—

(a) the person who owns the freehold of the premises; or

(b) any other person who owns any leasehold interest in the premises which is specified in the initial notice under section 13(3)(c)(i).

(3) A notice given under section 13 shall not specify under subsection (3)(a)(ii) or (c)(i) of that section any property or leasehold interest in property if on the relevant date—

(a) any acquiring authority has, with a view to the acquisition of the whole or part of the property for any authorised purpose—

(i) served notice to treat on the person who owns the freehold of, or any such leasehold interest in, the property, or

(ii) entered into a contract for the purchase of the interest of any such person in the property or part of it, and

(b) the notice to treat or contract remains in force.

(4) A notice given under section 13 shall cease to have effect if, before a binding contract is entered into in pursuance of the notice, any acquiring authority serves, with a view to the acquisition of the whole or part of the specified premises for any authorised purpose, notice to treat as mentioned in subsection (1)(a).

(5) Where any such authority so serves notice to treat at any time after a binding contract is entered into in pursuance of the notice given under section 13 but before completion of the acquisition by the nominee purchaser under this Chapter, then (without prejudice to the general law as to the frustration of contracts) the parties to the contract shall be discharged from the further performance of the contract.

(6) Where subsection (4) or (5) applies in relation to the initial notice or any contract entered into in pursuance of it, then on the occasion of the compulsory acquisition in question the compensation payable in respect of any interest in the specified premises (whether or not the one to which the relevant notice to treat relates) shall be determined on the basis of the value of the interest—

(a) (if subsection (4) applies) subject to and with the benefit of the rights and obligations arising from the initial notice and affecting that interest; or

(b) (if subsection (5) applies) subject to and with the benefit of the rights and obligations arising from the contract and affecting that interest.

(7) In this section—

(a) “acquiring authority”, in relation to the specified premises or any other property, means any person or body of persons who has or have been, or could be, authorised to acquire the whole or part of those premises or that property compulsorily for any purpose; and

(b) “authorised purpose”, in relation to any acquiring authority, means any such purpose.

31 Effect on initial notice of designation for inheritance tax purposes and applications for designation. E+W

(1) A notice given under section 13 shall be of no effect if on the relevant date the whole or any part of—

(a) the specified premises, or

(b) any property specified in the notice under section 13(3)(a)(ii),

is qualifying property.

(2) For the purposes of this section the whole or any part of the specified premises, or of any property specified as mentioned in subsection (1), is qualifying property if—

(a) it has been designated under section 31(1)(b), (c) or (d) of the M1 Inheritance Tax Act 1984 (designation and undertakings relating to conditionally exempt transfers), whether with or without any other property, and no chargeable event has subsequently occurred with respect to it; or

(b) an application to the Board for it to be so designated is pending; or

(c) it is the property of a body not established or conducted for profit and a direction has been given in relation to it under section 26 of that Act (gifts for public benefit), whether with or without any other property; or

(d) an application to the Board for a direction to be so given in relation to it is pending.

(3) For the purposes of subsection (2) an application is pending as from the time when it is made to the Board until such time as it is either granted or refused by the Board or withdrawn by the applicant; and for this purpose an application shall not be regarded as made unless and until the applicant has submitted to the Board all such information in support of the application as is required by the Board.

(4) A notice given under section 13 shall cease to have effect if, before a binding contract is entered into in pursuance of the notice, the whole or any part of—

(a) the specified premises, or

(b) any property specified in the notice under section 13(3)(a)(ii),

becomes qualifying property.

(5) Where a notice under section 13 ceases to have effect by virtue of subsection (4) above—

(a) the nominee purchaser shall not be liable for any costs under section 33; and

(b) the person who applied or is applying for designation or a direction shall be liable—

(i) to the qualifying tenants by whom the notice was given for all reasonable costs incurred by them in the preparation and giving of the notice; and

(ii) to the nominee purchaser for all reasonable costs incurred in pursuance of the notice by him or by any other person who has acted as the nominee purchaser.

(6) Where it is claimed that subsection (1) or (4) applies in relation to a notice under section 13, the person making the claim shall, at the time of making it, furnish the nominee purchaser with evidence in support of it; and if he fails to do so he shall be liable for any costs which are reasonably incurred by the nominee purchaser in consequence of the failure.

(7) In subsection (2)—

(a) paragraphs (a) and (b) apply to designation under section 34(1)(a), (b) or (c) of the M2 Finance Act 1975 or section 77(1)(b), (c) or (d) of the M3 Finance Act 1976 as they apply to designation under section 31(1)(b), (c) or (d) of the M4 Inheritance Tax Act 1984; and

(b) paragraphs (c) and (d) apply to a direction under paragraph 13 of Schedule 6 to the Finance Act 1975 as they apply to a direction under section 26 of that Act of 1984.

(8) In this section—

• “the Board” means the Commissioners of Inland Revenue;

• “chargeable event” means—

  (a)

  any event which in accordance with any provision of Chapter II of Part II of the M5 Inheritance Tax Act 1984 (exempt transfers) is a chargeable event, including any such provision as applied by section 78(3) of that Act (conditionally exempt occasions); or

  (b)

  any event which would have been a chargeable event in the circumstances mentioned in section 79(3) of that Act (exemption from ten-yearly charge).

Marginal Citations

M1 1984 c. 51.

M2 1975 c. 7.

M3 1976 c. 40.

M4 1984 c. 51.

M5 1984 c. 51.