Town and Country Planning Act 1990

Compensation

144 Special provisions as to compensation where purchase notice served

(1) Where compensation is payable by virtue of section 107 in respect of expenditure incurred in carrying out any works on land, any compensation payable in respect of the acquisition of an interest in the land in pursuance of a purchase notice shall be reduced by an amount equal to the value of those works.

(2) Where—

(a) the Secretary of State directs under section 141(3) that, if an application for it is made, planning permission must be granted for the development of any land, and

(b) on a claim made to the local planning authority within the prescribed time and in the prescribed manner, it is shown that the permitted development value of the interest in that land in respect of which the purchase notice was served is less than its existing use value,

that authority shall pay the person entitled to that interest compensation of an amount equal to the difference.

(3) If the planning permission mentioned in subsection (2)(a) would be granted subject to conditions for regulating the design or external appearance, or the size or height of buildings, or for regulating the number of buildings to be erected on the land, the Secretary of State may direct that in assessing any compensation payable under subsection (2) those conditions must be disregarded, either altogether or to such extent as may be specified in the direction.

(4) The Secretary of State may only give a direction under subsection (3) if it appears to him to be reasonable to do so having regard to the local circumstances.

(5) Sections 117 and 118 shall have effect in relation to compensation under subsection (2) as they have effect in relation to compensation to which those sections apply.

(6) In this section—

• “permitted development value”, in relation to an interest in land in respect of which a direction is given under section 141(3), means the value of that interest calculated with regard to that direction, but on the assumption that no planning permission would be granted otherwise than in accordance with that direction, and

• “existing use value”, in relation to such an interest, means the value of that interest as (for the purpose of ascertaining the compensation payable on an acquisition of the interest in pursuance of the purchase notice) that value would have been assessed in accordance with the provisions of the [1919 c. 57.] Acquisition of Land (Assessment of Compensation) Act 1919, as modified by the provisions of sections 51 to 54 of the 1947 Act, if no enactment repealing, modifying or superseding any of those provisions had been passed after the passing of the 1947 Act.

(7) Where a purchase notice in respect of an interest in land is served in consequence of an order under section 102 or paragraph 1 of Schedule 9, then if—

(a) that interest is acquired in accordance with this Chapter; or

(b) compensation is payable in respect of that interest under subsection (2),

no compensation shall be payable in respect of that order under section 115.