Town and Country Planning Act 1954

43 Right to compensation in respect of past planning decisions, or past revocations, etc. of planning permission

(1) Subject to the provisions of this Part of this Act, the holder of the relevant holding shall be entitled to compensation under this Part of this Act in respect of such a planning decision or order as is mentioned in the last preceding section if—

(a) he is entitled to an interest in any qualified land ; or

(b) having been entitled to an interest in any qualified land at the date of the decision or order, he sold that interest (otherwise than to a public authority possessing compulsory purchase powers) in pursuance of a contract made after that date and during the period beginning with the eighteenth day of November, nineteen hundred and fifty-two, and ending immediately before the commencement of this Act,

and the value of that interest or of another interest which has merged therein or, in the case of an interest extending to other land, the value of that or of that other interest in so far as it subsisted in that qualified land, was depreciated by the decision or order:

Provided that compensation shall not be payable under this Part of this Act in respect of an order under section twenty-one of the principal Act so far as it relates to any particular land if—

(i) compensation in respect of that order is or was payable by the local planning authority under section twenty-two of that Act; and

(ii) by virtue of paragraph (b) of the proviso to subsection (1) of the said section twenty-two (which relates to development exempt from development charge by virtue of Part VIII of that Act) the compensation includes or included compensation in respect of loss or damage consisting of the depreciation in value of an interest in that land.

(2) A person who is entitled to the relevant holding as mortgagee shall be entitled to such compensation as aforesaid, notwithstanding that he does not satisfy the conditions set out in paragraphs (a) and (b) of the preceding subsection, if the mortgagor would have been entitled to such compensation if he had continued to be the holder of the relevant holding.

(3) For the purposes of this Part of this Act any question whether, or to what extent, the value of an interest in land or of an interest in so far as it subsisted in qualified land was depreciated by a planning decision shall be determined in accordance with the provisions of section twenty-six of this Act:

Provided that those provisions shall apply for the purposes of this Part of this Act—

(a) as if the reference in subsection (1) of the said section twenty-six to Part II of this Act were a reference to this Part of this Act; and

(b) as if Part VII of the principal Act had not been enacted,

and in the application of subsection (2) of the said section twenty-six in a case to which paragraph (b) of subsection (1) of this section applies, no account shall be taken of any grant of, or undertaking to grant, planning permission made or given after the making of the contract of sale.

(4) For the purposes of the application of this Part of this Act with respect to such a planning decision as aforesaid, subsections (2) to (4) of section nineteen, subsections (1), (2), (6) and (7) of section twenty, and section twenty-one of this Act shall have effect as they have effect for the purposes of Part II of this Act:

Provided that, in a case to which paragraph (b) of subsection (1) of this section applies, for the reference in the said section twenty-one to the Minister's giving notice of his findings in respect of the claim for compensation there shall be substituted a reference to the making of the contract of sale.

(5) In determining for the purposes of a claim for compensation under this Part of this Act whether, or to what extent, the value of an interest in land was depreciated by such an order as aforesaid—

(a) regard shall be had to any compensation which has become payable to the person entitled to that interest in respect of that order under section twenty-two of the principal Act otherwise than by virtue of the proviso to subsection (1) of that section ;

(b) any grant of, or undertaking to grant, planning permission made or given during the period between the making of the order and the time when the Minister gives notice of his findings in respect of that claim, being a grant or undertaking which is in force at the end of that period, shall be taken into account as if it had been in force at the beginning of that period;

(c) Part VII of the principal Act shall be deemed not to have applied after the date when the order was made:

Provided that, in a case to which paragraph (b) of subsection (1) of this section applies, no account shall be taken of any grant or undertaking made or given after the making of the contract of sale.

(6) Where the interest to which the holder of the relevant holding is entitled or, as the case may be, which he sold, is or was an interest in reversion immediately expectant upon the termination of a tenancy granted after the planning decision or order and on or after the eighteenth day of November, nineteen hundred and fifty-two, the preceding provisions of this section shall have effect as if that tenancy had not been granted.