Town and Country Planning Act 1954

18 Reduction or extinguishment of balance

(1) Where in accordance with the last preceding section land has an original unexpended balance of established development value, then, subject to the next following subsection, the land shall be taken to have that balance at any time after the commencement of this Act except in so far as that balance is by virtue of any provision of this Act to be treated as having been reduced or extinguished immediately before that time.

(2) Where any land taken as a whole has an original unexpended balance of established development value, but at any time after the commencement of this Act an act is done or an event occurs in relation to any area consisting of, or including, part only of that land in consequence of which, by virtue of any provision of this Act, an amount would fall to be deducted from the original unexpended balance of that part of that land for the purpose of determining the unexpended balance thereof at any subsequent time, then, without prejudice to the operation of the preceding subsection with respect to any part of the land taken separately, the land taken as a whole shall be treated as not having any such balance at that subsequent time.

(3) Where compensation under this Part of this Act becomes payable in respect of the depreciation of the value of an interest in land by a planning decision, then, for the purpose of determining whether that land or any part thereof has an unexpended balance of established development value at any subsequent time, the amount of the compensation shall be deducted from the original unexpended balance of established development value of that land and the original balance of that land or that part thereof shall be treated as having been reduced or extinguished accordingly immediately before that subsequent time.

(4) Where any new development of land is initiated after the commencement of this Act, or was initiated before the commencement of this Act but on or after the first day of July, nineteen hundred and forty-eight, being land which has an original unexpended balance of established development value, then, for the purpose of determining whether that land or any part thereof has an unexpended balance of established development value at any subsequent time—

(a) if the development related only to that land, the value of that development (ascertained, with reference to that subsequent time, in accordance with the provisions of the Fourth Schedule to this Act); or

(b) if the development related to that land together with other land, so much of the value of that development (so ascertained) as was attributable to that land,

shall be deducted from the original unexpended balance of established development value of that land and the original balance of that land or that part thereof shall be treated as having been reduced or extinguished accordingly immediately before that subsequent time:

Provided that this subsection shall not apply to any land in respect of any interest in which a payment under section fifty-nine of the principal Act has become or becomes payable; and for the purposes of this subsection development initiated before the commencement of this Act shall be disregarded if—

(i) a development charge was determined to be payable in respect thereof, or would have fallen to be so determined but for any exemption conferred by regulations under Part VII of the principal Act, or by any provision of Part VIII of that Act; or

(ii) it has been certified by the Central Land Board with respect to that development under subsection (3) of section fifty-eight of this Act that a development charge could have been determined to be payable in respect thereof if the circumstances referred to in paragraphs (a) and (b) of subsection (1) of that section had not existed.

(5) Where an act or event has occurred in relation to any land in consequence of which any of the provisions of this Act requires an amount to be deducted from the original unexpended balance of established development value of that land or any part thereof, there shall be attributed to the various parts of that land so much of that amount as might reasonably be expected to have been attributed thereto if the authority determining the amount had been required to apportion it between those parts in accordance with the same principles as applied to its determination ; and where two or more such acts or events have occurred in relation to the same land, those provisions shall apply cumulatively and the requisite deduction from the original unexpended balance of established development value of that land shall be made by reference to each of those acts or events.