Town and Country Planning Act 1990

9 (1) This paragraph shall have effect where, by virtue of Part I of the 1954 Act, a payment became or becomes payable in respect of a claim holding.

(2) Subject to the following provisions of this paragraph, if either—

(a) the principal amount of the payment was or is not less than the value of the claim holding; or

(b) the payment (whatever its amount) became or becomes payable under Case D (that is to say, by virtue of section 8 of the 1954 Act, which related to cases where a claim holding had been disposed of for valuable consideration),

the claim holding shall be deemed to have been extinguished; and if the principal amount of the payment (not being a payment under Case D) was or is less than the value of the claim holding, the value of that holding shall be deemed to have been reduced by the principal amount of the payment.

(3) Sub-paragraph (2) shall apply where two or more payments under Part I of the 1954 Act were or are payable in respect of the same claim holding, with the substitution, for references to the principal amount of the payment, of references to the aggregate of the principal amounts of the payments.

(4) Where one or more relevant acts or events have occurred in relation to a claim holding (in this paragraph referred to as “the parent holding”) and any such act or event did not extend to the whole of the area of the parent holding, then, for the purposes of sub-paragraphs (1) to (3) and paragraph 10 and of the relevant provisions—

(a) the parent holding shall be treated as having been divided immediately before the time of completion, into as many separate claim holdings, with such areas, as may be necessary to ensure that, in the case of each holding, either any relevant act or event extending to the area of that holding extended to the whole of it or no relevant act or event extended to the area of that holding;

(b) the value of each of the separate holdings respectively shall be taken to have been that fraction of the value of the parent holding which then attached to the part of the area of the parent holding constituting the area of the separate holding; and

(c) the portion of the amount of any payment under Part I of the 1954 Act which, by the authority determining that amount, was or is apportioned to the area of any of the separate claim holdings shall be taken to have been a payment payable under that Part in respect of that claim holding.

(5) In this paragraph—

• “relevant act or event”, in relation to a claim holding, means an act or event by which, in accordance with the provisions of Part I of the 1954 Act, one or more payments became or become payable in respect of that claim holding, and

• “the relevant provisions” means sections 119 to 136 and paragraphs 1 to 4, 12 to 14, 16 and 18 to 20.

(6) For the purposes of this paragraph—

(a) a payment shall be treated as having become payable notwithstanding that the right to receive the payment was extinguished by section 14(2) of the 1954 Act (which enabled the Central Land Board to set off payments against liabilities in respect of development charges);

(b) any reduction of the principal amount of a payment by virtue of that subsection shall be disregarded; and

(c) where in accordance with subsection (3) of section 14 or subsection (6) of section 58 of the 1954 Act (which provided for cases of failure to apply for a payment within the appropriate period) an amount was determined as being the principal amount of a payment to which a person would have been entitled as mentioned in those subsections respectively, that payment shall be treated as if it had become due and as if the principal amount of it had been the amount so determined.

(7) Where in accordance with sub-paragraphs (1) to (6) a claim holding is deemed to have been extinguished or the value of a claim holding is deemed to have been reduced, the extinguishment or reduction, as the case may be, shall be deemed to have had effect immediately before the time of completion.

(8) References in this paragraph to the value of a claim holding are references to the value of it immediately before the time of completion.