Town and Country Planning Act 1954

37 Effect of Part III on unexpended balance of established development value

(1) Where, in the case of—

(a) a compulsory acquisition to which this Part of this Act applies; or

(b) a sale of an interest in land by agreement in pursuance of a contract made after the commencement of this Act to a public authority possessing compulsory purchase powers, being such a department, authority, person or body of persons as is mentioned in subsection (1) of section thirty of this Act,

any of the land in which the interest acquired or sold subsisted had an unexpended balance of established development value immediately before the relevant date (in this subsection referred to as " the relevant balance"), then, in determining whether that land or any part thereof has an unexpended balance of established development value at any subsequent time—

(i) for the purposes of section thirty-one of this Act and, unless immediately after the acquisition or sale there is outstanding some interest (other than an excepted interest) in that land to which some person other than the acquiring authority is entitled, for all other purposes of this Act, the original unexpended balance of established development value of that land shall be treated as having been extinguished immediately before that subsequent time;

(ii) if, immediately after the acquisition or sale, there is outstanding any such interest as aforesaid, then for the purposes of any other Part of this Act there shall be deducted from the said original balance an amount equal to any part of the relevant balance which is not, or which in the appropriate circumstances would not have been, attributable for the purposes of the said section thirty-one to any such outstanding interest, 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 in the event of a subsequent compulsory acquisition of any such outstanding interest, being a compulsory acquisition to which this Part of this Act applies, the said section thirty-one shall have effect for the purposes of assessing the compensation payable as if this subsection had not been enacted.

(2) Where—

(a) in connection with a compulsory acquisition to which this Part of this Act applies an amount by way of compensation such as is mentioned in paragraph (a) of subsection (1) of the last preceding section was paid in respect of an interest in any land other than the relevant land ; or

(b) on such a sale as is mentioned in paragraph (b) of the preceding subsection, the price paid included an amount in respect of damage sustained by an interest in land other than, but held with, the land in which the interest sold subsisted, being damage sustained by reason of the severance of the land or by reason that the interest in that other land was injuriously affected,

and the said amount exceeds what was, or in the appropriate circumstances would have been, the loss of immediate value of that interest as defined in the last preceding section, then, for the purpose of determining whether that other land or any part thereof has an unexpended balance of established development value at any subsequent time, there shall be deducted from the original unexpended balance of established development value of that other land an amount equal to the excess, or so much thereof as was, or in the appropriate circumstances would have been, calculated by reference to that balance, 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.

(3) If in a case such as is mentioned in paragraph (a) or (b) of the last preceding subsection so much, if any, of the amount mentioned in that paragraph as was, or in the appropriate circumstances would have been, attributable to the loss of immediate value of the interest in question was or would have been less than the depreciation in restricted value of that interest within the meaning of subsection (6) of the last preceding section, then (whether or not the land in question or any part thereof would apart from the provisions of this subsection have had an original unexpended balance of established development value) for the purpose of determining whether at any time after the acquisition or sale the land in question or any part thereof has such a balance, but for no other purpose, it shall be deemed that immediately after the commencement of this Act a claim holding subsisted with an area consisting of the land in question and a value equal to seven-eighths of the amount of the difference.

(4) In this section the expression " in the appropriate circumstances " means if the compulsory acquisition or the sale had been a compulsory acquisition in respect of which the said section thirty-one operated, and the expression " the relevant date " means the date of the service of the notice to treat or, as the case may be, the date of the making of the contract.