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Planning and Compulsory Purchase Act 2004

Section 107: Occupier’s loss payment

141.Section 107 inserts a new section 33B and a new section 33C into the Land Compensation Act 1973. Section 33B relates to occupiers of agricultural land that is compulsorily acquired. Section 33C relates to occupiers of non-agricultural land that is compulsorily acquired. Both sections provide for the payment of what is called an “occupier’s loss payment” (in addition to the basic loss payment) to any person who satisfies the conditions for the basic loss payment and who has also occupied the land being acquired for a period of no less than a year. The amount of the payment is assessed at a rate of 2.5% of the value of the occupier’s interest, or on the basis of a formula based on the area of the land or the floor space of the building being acquired, whichever gives the greatest figure, in each case subject to a maximum of £25,000. Again, if part of the property is a dwelling in respect of which the person could claim a home loss payment, the value of the interest in the dwelling must be deducted from the value of the interest in the whole when assessing the occupier’s loss payment.

142.The occupier’s loss payment will not be available in respect of compulsory acquisitions which are made before these provisions of the Act are brought into force.

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