Town and Country Planning (Scotland) Act 1954

32 Compensation to include unexpended balance of established development value

(1) Where, in the case of a compulsory acquisition to which this Part of this Act applies, compensation on the basis of existing use is payable in respect of the acquisition of the relevant interest, and any of the relevant land has an unexpended balance of established development value at the time immediately before the service of the notice to treat, then, subject to section thirty-four of this Act, there shall be added to the compensation payable in respect of the acquisition of the relevant interest apart from the provisions of this section—

(a) where the relevant interest is the only interest (other than excepted interests) subsisting at that time in any of the relevant land which has such a balance—

(i) if the restricted value of the relevant interest is a minus quantity, an amount equal to so much, if any, of that balance at that time as remains after the deduction therefrom of an amount equal to the minus quantity; or

(ii) in any other case, an amount equal to that balance at that time ; or

(b) where the relevant interest is one of two or more interests (other than excepted interests) so subsisting, an amount equal to so much of that balance at that time as is ascertained in accordance with the provisions of the Fifth Schedule to this Act to be attributable to the relevant interest:

Provided that, in a case where the relevant interest is the interest of the lessee under a lease, no payment shall be made by virtue of this section if the person entitled to the relevant interest is, at the time immediately before the service of the notice to treat, prohibited, by the terms of his lease from carrying out any new development of the relevant land.

(2) Regulations made under this section shall provide for requiring persons entitled to interests in the relevant land, other than the relevant interest and any excepted interest, to be notified, in cases where it is proposed, by virtue of this section, to pay compensation in excess of compensation on the basis of existing use, and for enabling such persons, in case of dispute as to the application of this section, to refer the dispute to the Lands Tribunal.

(3) References in this section to the restricted value of an interest in land, in relation to an acquisition of that interest, are references to the amount which, for the purposes of Part V of the principal Act, would have been taken to be the restricted value of that interest on the appointed day if—

(a) the date of the service of the notice to treat had been appointed as the appointed day for the purposes of the said Part V;

(b) references to the seventh day of January, nineteen hundred and forty-seven, in subsection (5) of section fifty-eight of the principal Act (which requires values to be calculated by reference to prices current immediately before that day) were references to the date of the acquisition; and

(c) references in the said section fifty-eight to the Third Schedule to the principal Act were references to that Schedule as amended by this Act.