Town and Country Planning Act 1971

• (6) In this section " the decision area " in relation to a planning decision means the aggregate of the land to which the decision relates.

Assessment of depreciation

153

• (1) For the purposes of this Part of this Act, the value of an interest in land, or of an interest in so far as it subsists in particular land, shall be taken to be depreciated by a planning decision (in this section referred to as "the relevant decision") if, and to the extent to which, that value, calculated in accordance with the following provisions of this section, falls short of what that value, so calculated, would have been if the relevant decision had been a decision to the contrary effect.

• (2) Subject to the following provisions of this section, any such value shall for the purposes of this section be calculated—

• (a) as at the time of the relevant decision; but

• (b) as affected by that decision, by any grant of planning permission made after that decision and in force immediately before the Secretary of State gives notice of his findings on the claim for compensation in respect of that decision, and by any undertaking to grant planning permission so in force; and

• (c) on the assumption that, after the relevant decision, and apart from any such permission or undertaking as is mentioned in paragraph (b) of this subsection, planning permission would not be granted for any new development of the land in question, but would be granted for any development thereof other than new development.

• (3) If in consequence of another planning decision or of an order, being a decision or order made—

• (a) before the relevant decision; and

• (b) either in respect of the whole or part of the land to which the relevant decision relates, or in respect of land which includes the whole or part of that land,

compensation to which this subsection applies has become or becomes payable in respect of that other planning decision or that order, the calculation to be made under this section shall be made as if that other planning decision had been a decision to the contrary effect, or that order had not been made, as the case may be.

• (4) Subsection (3) of this section applies—

• (a) to any compensation payable under this Part of this Act, or under Part II or Part V of the Act of 1954 or Part VI of the Act of 1962 ; and

• (b) to so much of any compensation payable under section 164 of this Act or section 118 of the Act of 1962, or under the provisions of those sections as applied by section 165 of this Act or section 119 of the Act of 1962 respectively, and so much of any compensation to which Part IV of the Act of 1954 applied, as is or was payable in respect of loss or damage consisting of depreciation of the value of an interest in land.

• (5) In this section " a decision to the contrary effect "—

• (a) in relation to a decision refusing permission, means a decision granting the permission subject to such condition (if any) of a description falling within subsection (2) of section 147 of this Act as the authority making the decision might reasonably have been expected to impose if the permission had not been refused; and

• (b) in relation to a decision granting the permission subject to conditions, means a decision granting the permission applied for subject only to such of those conditions (if any) as fell within subsection (2) of that section.

Claims for, and payment of, compensation

General provisions as to claims for compensation

154

• (1) Compensation under this Part of this Act shall not be payable unless a claim for it is duly made in accordance with the provisions of this section.

• (2) A claim for compensation under this Part of this Act shall not have effect unless it is made before the end of the period of six months beginning with the date of the planning decision to which it relates:

Provided that the Secretary of State may in any particular case (either before, on or after the date on which the time for claiming would otherwise have expired) allow an extended, or further extended, period for making such a claim.

• (3) Regulations made under this section may—

• (a) require claims for compensation under this Part of this Act to be made in a form prescribed by the regulations;

• (b) require a claimant to provide such evidence in support of the claim, and such information as to the interest of the claimant in the land to which the claim relates, and as to the interests of other persons therein which are known to the claimant, as may be so prescribed.

• (4) Any claim for such compensation in respect of a planning decision shall be sent to the local planning authority; and it shall be the duty of that authority, as soon as may be after receipt of a claim, to transmit the claim to the Secretary of State, and to furnish the Secretary of State with—

• (a) any evidence or other information provided by the claimant in accordance with regulations made under this section; and

• (b) such other information (if any) as may be required by or under regulations made under this section, being information appearing to the Secretary of State to be relevant to the exercise of his powers under the provisions of Part III of this Act relating to the review of planning decisions where compensation is claimed.

• (5) Where a claim is transmitted to the Secretary of State under subsection (4) of this section—

• (a) if it appears to the Secretary of State that the development to which the planning decision related was not new development, or that at the time of the planning decision no part of the land to which the claim relates had an unexpended balance of established development value, or that compensation is excluded by section 147 or 148 of this Act, the Secretary of State shall notify the claimant accordingly, stating on which of those grounds it appears to him that compensation is not payable, and inviting the claimant to withdraw the claim;

• (b) unless the claim is withdrawn, the Secretary of State shall give notice of the claim to every other person (if any) appearing to him to have an interest in the land to which the planning decision related.

Effect on claims of direction under s.38

155

• (1) Where, in accordance with section 39(3) of this Act, the Secretary of State gives notice of a direction under section 38 of this Act to a person who has made a claim for compensation in respect of the planning decision to which that direction relates, that person, if he does not withdraw the claim, may, at any time within thirty days after the service on him of the Secretary of State's notice, give notice to the Secretary of State modifying the claim.

• (2) Subject to any modification by virtue of a notice given by a claimant under subsection (1) of this section, where the Secretary of State gives a direction under section 38 of this Act in respect of a decision of a local planning authority, any claim made in respect of that decision shall have effect as if it had been made in respect of the decision which, by virtue of the direction, is substituted for the decision of the authority, or, as the case may be, as if it had been made in respect of the decision of the authority as modified by the direction.

Determination of claims

156

• (1) Provision shall be made by regulations under this section—

• (a) for requiring claims for compensation under this Part of this Act to be determined by the Secretary of State in such manner as may be prescribed by the regulations;

• (b) for regulating the practice and procedure to be followed in connection with the determination of such claims;

• (c) for requiring the Secretary of State, on determining any such claim, to give notice of his findings to the claimant, and to every other person (if any) who has made a claim for compensation under this Part of this Act in respect of the same planning decision, and, if his findings include an apportionment, to give particulars of the apportionment to any other person entitled to an interest in land appearing to the Secretary of State to be an interest substantially affected by the apportionment.

• (2) Subject to subsection (3) of this section, provision shall be made by regulations under this section—

• (a) for enabling the claimant or any other person to whom notice of the Secretary of State's findings has been given in accordance with subsection (1) of this section, if he wishes to dispute the findings, and any other person to whom particulars of an apportionment included in those findings have been so given, or who establishes that he is entitled to an interest in land which is substantially affected by such an apportionment, if he wishes to dispute the apportionment, to require the findings, or, as the case may be, the apportionment, to be referred to the Lands Tribunal;

• (b) for enabling the claimant and every other person to whom notice of any findings or apportionment has been given as mentioned in paragraph (a) of this subsection to be heard by the Tribunal on any reference under this section of those findings or of that apportionment, as the case may be; and

• (c) for requiring the Tribunal, on any such reference, either to confirm or to vary the Secretary of State's findings or the apportionment, as the case may be, and to notify the parties of the decision of the Tribunal.

• (3) Where on a reference to the Lands Tribunal under this section it is shown that an apportionment relates wholly or partly to the same matters as a previous apportionment, and is consistent with that previous apportionment in so far as it relates to those matters, the Tribunal shall not vary the apportionment in such a way as to be inconsistent with the previous apportionment in so far as it relates to those matters.

Payment of compensation

157

Where compensation is determined under section 156 of this Act to be payable, the Secretary of State shall pay the compensation to the person entitled thereto in accordance with the preceding provisions of this Part of this Act.

Subsequent recovery of compensation

Apportionment and registration of compensation

158

• (1) Where, on a claim for compensation under this Part o£ this Act in respect of a planning decision, the Secretary of State determines that compensation is payable and that the amount of the compensation exceeds £20, the Secretary of State shall (if it appears to him to be practicable to do so) apportion the amount of the compensation between different parts of the land to which the claim for compensation relates, and shall include particulars of the apportionment in the notice of his findings under section 156 of this Act.

• (2) In carrying out an apportionment under subsection (1) of this section the Secretary of State shall divide the land into parts, and shall distribute the compensation between those parts, according to the way in which the different parts of the land appear to him to be differently affected by the planning decision,

• (3) On a reference to the Lands Tribunal under section 156 of this Act, unless the decision of the Tribunal will not affect the amount of the compensation or any apportionment thereof by the Secretary of State, the preceding provisions of this section shall apply with the substitution, for references to the Secretary of State, of references to the Lands Tribunal.

• (4) Where, on a claim for compensation under this Part of this Act in respect of a planning decision, compensation has become payable of an amount exceeding £20, the Secretary of State shall cause notice of that fact, specifying the planning decision and the land to which the claim for compensation relates, and the amount of the compensation and any apportionment thereof under this section, to be deposited with the council of the county borough, London borough or county district in which the land is situated, and, if that council is not the local planning authority, with the local planning authority.

• (5) Notices deposited under this section shall be registered in the register of local land charges in such manner as may be prescribed by rules made for the purposes of this section under section 15(6) of the Land Charges Act 1925 by the proper officer of the council of the county borough, London borough or county district.

• (6) In relation to compensation specified in a notice registered under this section, references in this Part of this Act to so much of the compensation as is attributable to a part of the land to which the notice relates shall be construed in accordance with the following provisions, that is to say—

• (a) if the notice does not include an apportionment under the preceding provisions of this section, the amount of the compensation shall be treated as distributed rateably according to area over the land to which the notice relates;

• (b) if the notice includes such an apportionment, the compensation shall be treated as distributed in accordance with that apportionment as between the different parts of the land by reference to which the apportionment is made; and so much of the compensation as, in accordance with the apportionment, is attributed to a part of the land shall be treated as distributed rateably according to area over that part of the land.

Recovery of compensation on subsequent development

159

• (1) No person shall carry out any new development to which this section applies, on land in respect of which a notice (hereafter in this Part of this Act referred to as a " compensation notice") is registered under section 158 of this Act, until such amount (if any) as is recoverable under this section in respect of the compensation specified in the notice has been paid or secured to the satisfaction of the Secretary of State.

• (2) Subject to the following provisions of this section, this section applies to any new development—

• (a) which is development of a residential, commercial or industrial character and consists wholly or mainly of the construction of houses, flats, shop or office premises, or industrial buildings (including warehouses), or any combination thereof; or

• (b) which consists in the winning and working of minerals ; or

• (c) to which, having regard to the probable value of the development, it is in the opinion of the Secretary of State reasonable that this section should apply.

• (3) This section shall not apply to any development by virtue of subsection (2)(c) of this section if, on an application made to him for the purpose, the Secretary of State has certified that, having regard to the probable value of the development, it is not in his opinion reasonable that this section should apply thereto.

• (4) Where the compensation specified in the compensation notice became payable in respect of the imposition of conditions on the granting of permission to develop land, this section shall not apply to the development for which that permission was granted.

Amount recoverable, and provisions for payment or remission thereof

160

• (1) Subject to the following provisions of this section, the amount recoverable under section 159 of this Act in respect of the compensation specified in a compensation notice—

• (a) if the land on which the development is to be carried out (in this subsection referred to as " the development area ") is identical with, or includes (with other land) the whole of, the land comprised in the compensation notice, shall be the amount of compensation specified in that notice;

• (b) if the development area forms part of the land comprised in the compensation notice, or includes part of that land together with other land not comprised in that notice, shall be so much of the amount of the compensation specified in that notice as is attributable to land comprised in that notice and falling within the development area.

• (2) Where, in the case of any land in respect of which a compensation notice has been registered, the Secretary of State is satisfied, having regard to the probable value of any proper development of that land, that no such development is likely to be carried out unless he exercises his powers under this subsection, he may, in the case of any particular development, remit the whole or part of any amount otherwise recoverable under section 159 of this Act; and where part only of any such amount has been remitted, he shall cause the compensation notice to be amended by substituting therein, for the statement of the amount of the compensation, in so far as it is attributable to that land, a statement of the amount which has been remitted under this subsection.

• (3) Where, in connection with the development of any land, an amount becomes recoverable under section 159 of this Act in respect of the compensation specified in a compensation notice, then, except where, and to the extent that, payment of that amount has been remitted under subsection (2) of this section, no amount shall be recoverable under section 159 of this Act in respect of that compensation, in so far as it is attributable to that land, in connection with any subsequent development thereof.

• (4) No amount shall be recoverable under section 159 of this Act in respect of any compensation by reference to which a sum has become recoverable by the Secretary of State under section 257 of this Act.

• (5) An amount recoverable under section 159 of this Act in respect of any compensation shall be payable to the Secretary of State, and—

• (a) shall be so payable either as a single capital payment or as a series of instalments of capital and interest combined, or as a series of other annual or periodical payments, of such amounts, and payable at such times, as the Secretary of State may direct, after taking into account any representations made by the person by whom the development is to be carried out; and

• (b) except where the amount is payable as a single capital payment, shall be secured by that person in such manner (whether by mortgage, convenant or otherwise) as the Secretary of State may direct.

• (6) If any person initiates any new development to which section 159 of this Act applies in contravention of subsection (1) of that section, the Secretary of State may serve a notice on him specifying the amount appearing to the Secretary of State to be the amount recoverable under that section in respect of the compensation in question, and requiring him to pay that amount to the Secretary of State within such period, not being less than three months after the service of the notice, as may be specified in the notice.

Amount recovered not to be deducted from unexpended balance

161

• (1) Where an amount has become recoverable under section 159 of this Act in respect of the compensation specified in a compensation notice, the following provisions of this section shall have effect for the purpose of determining any question as to the unexpended balance of established development value of any land at any subsequent time.

• (2) Except where, and to the extent that, payment of that amount has been remitted under section 160 of this Act, so much (if any) of that compensation as is attributable to that land shall, for the purpose mentioned in subsection (1) of this section, be treated as not having become payable, and accordingly (notwithstanding anything in section 140 of this Act) shall not be deducted from that balance.

Supplementary provisions

Mortgages, rentcharges and settlements

162

• (1) Regulations made under this section may make provision as to the exercise of the right to claim compensation under this Part of this Act, and as to the person to whom such compensation or any part thereof is to be paid, and as to the application of any such compensation or any part thereof, in cases where, apart from this section, the right to claim the compensation is exercisable by reference to an interest in land which is subject to a mortgage, or to a rentcharge, or to the trusts of a settlement, or which was so subject at a time specified in the regulations.

• (2) In relation to any case where, by virtue of any such regulations, compensation or a part thereof is to be paid to the owner of a rentcharge, the regulations may apply all or any of the provisions of section 25 of the War Damage Act 1943 (rights of owners of rentcharges as to payments for war damage) subject to such adaptations and modifications as may be prescribed by the regulations, and may provide for disputes arising under the regulations, so far as they relate to rentcharges, to be referred to the Lands Tribunal for determination by that tribunal.

Calculation of value

163

• (1) In calculating value for any of the purposes of this Part of this Act—

• (a) rules (2) to (4) of the rules set out in section 5 of the Land Compensation Act 1961 shall apply with the necessary modifications; and

• (b) if the interest to be valued is subject to a mortgage, it shall be treated as if it were not subject to the mortgage:

Provided that rule (3) of those rules shall not apply for the purposes of Schedule 16 to this Act.

• (2) Where, for the purposes of any of the provisions of this Part of this Act, value falls to be calculated by reference to the duration of a tenancy, and, by reason of any option or other contractual right with respect to the determination, renewal or continuance of the tenancy, the date of expiry of the tenancy is not ascertainable with certainty, that date shall be taken to be such as appears reasonable and probable having regard to the interests of the party by whom the option is exercisable, or in whose favour the right operates, and to any other material considerations subsisting at the time when the calculation of value falls to be made.

PART VIII — Compensation for Other Planning Restrictions

Revocation or modification of planning permission

Compensation where planning permission revoked or modified

164

• (1) Where planning permission is revoked or modified by an order under section 45 of this Act, (other than an order which takes effect by virtue of section 46 of this Act and without being confirmed by the Secretary of State), then if, on a claim made to the local planning authority within the time and in the manner prescribed by regulations under this Act, it is shown that a person interested in the land—

• (a) has incurred expenditure in carrying out work which is rendered abortive by the revocation or modification ; or

• (b) has otherwise sustained loss or damage which is directly attributable to the revocation or modification,

the local planning authority shall pay to that person compensation in respect of that expenditure, loss or damage.

• (2) For the purposes of this section, any expenditure incurred in the preparation of plans for the purposes of any work, or upon other similar matters preparatory thereto, shall be taken to be included in the expenditure incurred in carrying out that work.

• (3) Subject to subsection (2) of this section, no compensation shall be paid under this section in respect of any work carried out before the grant of the permission which is revoked or modified, or in respect of any other loss or damage (not being loss or damage consisting of depreciation of the value of an interest in land) arising out of anything done or omitted to be done before the grant of that permission.

• (4) In calculating, for the purposes of this section, the amount of any loss or damage consisting of depreciation of the value of an interest in land, it shall be assumed that planning permission would be granted for development of the land of any class specified in Schedule 8 to this Act.

• (5) In this Part of this Act any reference to an order under section 45 of this Act includes a reference to an order under the provisions of that section as applied by section 51(2) of this Act.

Application of s.164 to special cases of refusal or conditional grant of planning permission

165

• (1) The provisions of this section shall have effect where—

• (a) planning permission for the development of land has been granted by a development order; and

• (b) that permission is withdrawn, whether by the revocation or amendment of the order or by the issue of directions under powers in that behalf conferred by the order; and

• (c) on an application made in that behalf under Part III of this Act, planning permission for that development is refused, or is granted subject to conditions other than those previously imposed by the development order.

• (2) In any case falling within subsection (1) of this section, the provisions of section 164 of this Act shall apply as if the planning permission granted by the development order—

• (a) had been granted by the local planning authority under Part III of this Act; and

• (b) had been revoked or modified by an order under section 45 of this Act,

and the provisions of section 166 (except subsection (5)(b) thereof) and of sections 167 and 168 of this Act shall apply as if references therein to an order under section 45 of this Act were references to the planning decision whereby the planning permission in question is refused, or is granted subject to conditions other than those previously imposed by the development order.

• (3) This section shall not apply in relation to planning permission for the development of operational land of statutory undertakers.

• (4) No compensation shall be payable under this section in respect of the imposition of any condition to which section 71 or 82 of this Act applies.

Registration and apportionment of compensation for depreciation

166

• (1) Where compensation becomes payable under the preceding provisions of this Part of this Act, and includes compensation for depreciation of an amount exceeding £20, the local planning authority shall (if it appears to them to be practicable to do so) apportion the amount of the compensation for depreciation between different parts of the land to which the claim for that compensation relates, and give particulars of any such apportionment to the claimant and to every other person (if any) entitled to an interest in land which appears to the authority to be substantially affected by the apportionment.

• (2) In carrying out an apportionment under subsection (1) of this section, the local planning authority shall divide the land into parts, and shall distribute the compensation for depreciation between those parts, according to the way in which different parts of the land appear to the authority to be differently affected by the order in consequence of which the compensation is payable.

• (3) Section 156(2) of this Act, and any regulations made by virtue thereof, shall have effect with respect to any such apportionment (subject to any necessary modifications) as they have effect with respect to an apportionment under section 158(1) of this Act.

• (4) On a reference to the Lands Tribunal by virtue of subsection (3) of this section, subsections (1) and (2) of this section, so far as they relate to the making of an apportionment, shall apply with the substitution, for references to the local planning authority, of references to the Lands Tribunal.

• (5) Where compensation becomes payable under the preceding provisions of this Part of this Act, and includes compensation for depreciation exceeding £20, the local planning authority shall give notice thereof to the Secretary of State, specifying the amount of the compensation for depreciation and any apportionment thereof under this section; arid subsections (4) to (6) of section 158 of this Act shall have effect with respect thereto as they have effect with respect to compensation under Part VII of this Act, subject, however, to any necessary modifications, and, in particular, with the substitution—

• (a) for references to the compensation mentioned in that section, of references to the compensation for depreciation specified in the notice; and

• (b) for references to the planning decision, of references to the order under section 45 of this Act in consequence of which the compensation is payable.

• (6) In this section and in section 167 of this Act "compensation for depreciation " means so much of any compensation payable under the preceding provisions of this Part of this Act as is payable in respect of loss or damage consisting of depreciation of the value of an interest in land, and "interest" (where the reference is to an interest in land) means the fee simple or a tenancy of the land and does not include any other interest therein.

Contribution by Secretary of State towards compensation in certain cases

167

• (1) Where a notice under section 166 of this Act is given to the Secretary of State in consequence of the making of an order under section 45 of this Act, and the circumstances are such that, if the permission revoked or modified by the order had been refused, or, as the case may be, had been granted as so modified, at the time when it was granted, compensation under Part VII of this Act could have been claimed and would have been payable by the Secretary of State, the Secretary of State may, subject to the provisions of this section, pay to the local planning authority a contribution of the amount appearing to him to be the amount of compensation which would have been so payable by him under Part VII of this Act.

• (2) The amount of any such contribution shall not exceed—

• (a) the amount of the compensation for depreciation paid by the local planning authority ; or

• (b) the unexpended balance of established development value, at the date of the making of the order, of the land in respect of which that compensation was paid.

• (3) Regulations made under this section shall make provision, in relation to cases where the Secretary of State proposes to pay a contribution under this section—

• (a) for requiring the Secretary of State to give notice of his proposal to persons entitled to such interests as may be prescribed in the land to which the proposal relates, and to such other persons (if any) as may be determined in accordance with the regulations to be affected by the proposal;

• (b) for enabling persons to whom notice of the proposal is given to object to the proposal, on the grounds that compensation would not have been payable as mentioned in subsection (1) of this section, or that the amount of the compensation so payable would have been less than the amount of the proposed contribution ;

• (c) for enabling any person making such an objection to require the matter in dispute to be referred to the Lands Tribunal for determination ; and

• (d) where a contribution under this section is paid, for applying (with any necessary modifications) the provisions of Part VII of this Act as to the reduction or extinguishment of the unexpended balance of established development value of land, as if the contribution had been a payment of compensation under that Part of this Act.

Recovery, on subsequent development, of compensation under s.164

168

• (1) In relation to notices registered under the provisions of section 158 of this Act, as applied by the preceding provisions of this Part of this Act, sections 159 and 160 of this Act shall have effect as they have effect in relation to compensation notices registered as therein mentioned:

Provided that, in a case where the compensation under section 164 of this Act specified in such a notice became payable in respect of an order modifying planning permission, the said sections shall not apply to development in accordance with that permission as modified by the order.

• (2) Subject to subsection (3) of this section, any sum recovered by the Secretary of State under section 159 of this Act, as applied by subsection (1) of this section, shall be paid to the local planning authority who paid the compensation to which that sum relates.

• (3) In paying any such sum to the local planning authority, the Secretary of State shall deduct therefrom—

• (a) the amount of any contribution paid by him under section 167 of this Act in respect of the compensation to which the sum relates;

• (b) the amount of any grant paid by him under Part XIII of this Act in respect of that compensation:

Provided that, if the sum recovered by the Secretary of State is an instalment of the total sum recoverable, or is recovered by reference to development of part of the land in respect of which the compensation was payable, any deduction to be made under paragraph (a) or paragraph (b) of this subsection shall be a deduction of such amount as the Secretary of State may determine to be the proper proportion of the amount referred to in that paragraph.

• (4) For the purposes of sections 159 and 160 of this Act, in their application by virtue of this section to compensation calculated under section 164 of this Act, the expression "new development" shall include—

• (a) any development of a class specified in paragraph 1 or 3 of Schedule 8 to this Act which is carried out otherwise than subject to the condition set out in Schedule 18 to this Act; and

• (b) any development excluded by subsection (2) of section 278 of this Act from that Schedule in its application to any determination to which subsection (1) of the said section 278 applies.

Other restrictions

Compensation for planning decisions restricting development other than new development

169

• (1) The provisions of this section shall have effect where, on an application for planning permission to carry out development of any class specified in Part II of Schedule 8 to this Act, the Secretary of State, either on appeal or on the reference of the application to him for determination, refuses the permission or grants it subject to conditions.

• (2) If, on a claim made to the local planning authority within the time and in the manner prescribed by regulations under this Act, it is shown that the value o£ the interest of any person in the land is less than it would have been if the permission had been granted, or had been granted unconditionally, as the case may be, the local planning authority shall pay to that person compensation of an amount equal to the difference.

• (3) In determining, for the purposes of subsection (2)"of this section, whether or to what extent the value of an interest in land is less than it would have been if the permission had been granted, or had been granted unconditionally—

• (a) it shall be assumed that any subsequent application for the like planning permission would be determined in the same way; but

• (b) if, in the case of a refusal of planning permission, the Secretary of State, on refusing that permission, undertook to grant planning permission for some other development of the land in the event of an application being made in that behalf, regard shall be had to that undertaking; and

• (c) no account shall be taken of any prospective use which would contravene the condition set out in Schedule 18 to this Act.

• (4) Where, on such an application as is mentioned in subsection (1) of this section, planning permission is granted by the Secretary of State subject to conditions for regulating the design or external appearance of buildings, or the size or height of buildings, the Secretary of State, if it appears to him to be reasonable to do so having regard to the local circumstances, may direct that those conditions shall be disregarded, either altogether or to such extent as may be specified in the direction, in assessing the compensation (if any) payable under this section.

• (5) Where, in the case of an application for planning permission to carry out any such development as is mentioned in subsection (1) of this section, a notice under section 72(1) of this Act is served in respect of the whole or part of the land to which the application relates, the preceding provisions of this section shall have effect as if the application had been an effective application for planning permission, and as if that permission had been refused, as mentioned in subsection (1) of this section, in respect of that land or that part thereof, as the case may be.

• (6) For the purposes of subsection (1) of this section—

• (a) paragraph 3 of Schedule 8 to this Act shall be construed as not extending to works involving any increase in the cubic content of a building erected after the appointed day (including any building resulting from the carrying out of such works as are described in paragraph 1 of that Schedule); and

• (b) paragraph 7 of that Schedule shall not apply to any such building.

• (7) For the purposes of this section the conditions referred to in sections 41 and 42 of this Act shall be disregarded and no compensation shall be payable under this section in respect of the imposition of any condition to which section 71 or 82 of this Act applies.

• (8) No compensation shall be payable under this section in respect of an interest in land in respect of which a purchase notice is served.

Compensation in respect of orders under s.51

170

• (1) The provisions of this section shall have effect where an order is made under section 51 of this Act, requiring a use of land to be discontinued, or imposing conditions on the continuance thereof, or requiring any buildings or works on land to be altered or removed.

• (2) If, on a claim made to the local planning authority within the time and in the manner prescribed by regulations under this Act, it is shown that any person has suffered damage in consequence of the order by depreciation of the value of an interest in the land to which he is entitled, or by being disturbed in his enjoyment of the land, that authority shall pay to that person compensation in respect of that damage.

• (3) Without prejudice to subsection (2) of this section, any person who carries out any works in compliance with the order shall be entitled, on a claim made as mentioned in that subsection, to recover from the local planning authority compensation in respect of any expenses reasonably incurred by him in that behalf.

• (4) Any compensation payable to a person under this section by virtue of such an order as is mentioned in subsection (1) of this section shall be reduced by the value to him of any timber, apparatus or other materials removed for the purpose of complying with the order.

Compensation for refusal of consent to alteration, etc. of listed building

171

• (1) The provisions of this section shall have effect where an application is made for listed building consent for the alteration .or extension of a listed building and—

• (a) either the works do not constitute development or they do so but the development is such that planning permission therefor is granted by a development order, and

• (b) the Secretary of State, either on appeal or on the reference of the application to him, refuses such consent or grants it subject to conditions.

• (2) If, on a claim made to the local planning authority within the time and in the manner prescribed by regulations under this Act, it is shown that the value of the interest of any person in the land is less than it would have been if listed building consent had been granted, or had been granted unconditionally, as the case may be, the local planning authority shall pay to that person compensation of an amount equal to the difference.

• (3) In determining, for the purposes of subsection (2) of this section, whether or to what extent the value of an interest in land is less than it would have been if the permission had been granted, or had been granted unconditionally—

• (a) it shall be assumed that any subsequent application for the like consent would be determined in the same way ; but

• (b) if, in the case of a refusal of listed building consent, the Secretary of State, on refusing that consent, undertook to grant such consent for some other works to the building in the event of an application being made in that behalf, regard shall be had to that undertaking.

• (4) No compensation shall be payable under this section in respect of an interest in land in respect of which a purchase notice is served, whether under section 180, 188 or 190 of this Act, being a purchase notice which takes effect.

Compensation where listed building consent revoked or modified

172

• (1) Where listed building consent is revoked or modified by an order under paragraph 10 of Schedule, 11 to this Act (other than an order which takes effect by virtue of paragraph 12 of that Schedule and without being confirmed by the Secretary of State), then if on a claim made to the local planning authority within the time and in the manner prescribed by regulations under this Act, it is shown that a person interested in the building—

• (a) has incurred expenditure in carrying out works which are rendered abortive by the revocation or modification ; or

• (b) has otherwise sustained loss or damage which is directly attributable to the revocation or modification,

the authority shall pay to that person compensation in respect of that expenditure, loss or damage.

• (2) For the purposes of this section, any expenditure incurred in the preparation of plans for the purposes of any works, or upon other similar matters preparatory thereto, shall be taken to be included in the expenditure incurred in carrying out those works.

• (3) Subject to subsection (2) of this section, no compensation shall be paid under this section in respect of any works carried out before the grant of the listed building consent which is revoked or modified, or in respect of any other loss or damage (not being loss or damage consisting of depreciation of the value of an interest in land) arising out of anything done or omitted to be done before the grant of that consent.

Compensation for loss or damage caused by service of building preservation notice

173

• (1) The provisions of this section shall have effect as respects compensation where a building preservation notice is served.

• (2) The local planning authority shall not be under any obligation to pay compensation under section 171 of this Act, in respect of any refusal of listed building consent or its grant subject to conditions, unless and until the building is included in a list compiled or approved by the Secretary of State under section 54 of this Act; but this subsection shall not prevent a claim for such compensation being made before the building is so included.

• (3) If the building preservation notice ceases to have effect without the building having been included in a list so compiled or approved, then, subject to a claim in that behalf being made to the local planning authority within the time and in the manner prescribed by regulations under this Act, any person who at the time when the notice was served had an interest in the building shall be entitled to be paid compensation by the authority in respect of any loss or damage directly attributable to the effect of the notice.

• (4) The loss or damage in respect of which compensation is payable under subsection (3) of this section shall include a sum payable in respect of a breach of contract caused by the necessity of discontinuing or countermanding any works to the building on account of the building preservation notice being in force with respect thereto.

Compensation in respect of tree preservation orders

174

The matters for which provision may under section 60 of this Act be made by a tree preservation order include the payment by the local planning authority, subject to such exceptions and conditions as may be specified in the order, of compensation in respect of loss or damage caused or incurred in consequence of the refusal of any consent required under the order, or of the grant of any such consent subject to conditions.

Compensation in respect of requirement as to replanting of trees

175

• (1) The provisions of this section shall have effect where, in pursuance of provision made by a tree preservation order, a direction is given, by the local planning authority or the Secretary of State, for securing the replanting of all or any part of a woodland area which is felled in the course of forestry operations permitted by or under the order.

• (2) If the Forestry Commissioners decide not to make any advance under section 4 of the Forestry Act 1967 in respect of the replanting and come to that decision on the ground that the direction frustrates the use of the woodland area for the growing of timber or other forest products for commercial purposes and in accordance with the rules or practice of good forestry, the local planning authority exercising functions under the tree preservation order shall be liable, on the making of a claim in accordance with this section, to pay compensation in respect of such loss or damage, if any, as is caused or incurred in consequence of compliance with the direction.

• (3) The Forestry Commissioners shall, at the request of the person under a duty to comply with the direction, give a certificate stating whether they have decided not to make any such advance and, if so, the grounds of their decision.

• (4) A claim for compensation under this section must be served on the local planning authority within twelve months from the date on which the direction was given, or where an appeal has been made to the Secretary of State against the decision of the local planning authority, from the date of the decision of the Secretary of State on the appeal, but subject in either case to such extension of that period as the local planning authority may allow.

Compensation for restrictions on advertising

176

Where, for the purpose of complying with any regulations made under section 63 of this Act, works are carried out by any person—

• (a) for removing an advertisement which was being displayed on 1st August 1948; or

• (b) for discontinuing the use for the display of advertisements of a site used for that purpose on that date,

that person shall, on a claim made to the local planning authority within the time and in the manner prescribed by regulations under this Act, be entitled to recover from that authority compensation in respect of any expenses reasonably incurred by him in that behalf.

Compensation for loss due to stop notice

177

• (1) Where a stop notice under section 90 of this Act ceases to have effect, a person who, at the time when it was first served, had an interest in the land to which it relates shall, in any of the circumstances mentioned in subsection (2) of this section, be entitled to be compensated by in the local planning authority in respect of any loss or damage directly attributable to the prohibition contained in the notice.

• (2) A person shall be entitled to compensation under subsection (1) of this section in respect of a prohibition contained in a stop notice in any of the following circumstances:—

• (a) the enforcement notice is quashed on any of the grounds mentioned in section 88(1)(b), (c), (d) or (e) of this Act;

• (b) the allegation in the enforcement notice on which the prohibition in the stop notice is dependent is not upheld by reason that the enforcement notice is varied on one of those grounds;

• (c) the enforcement notice is withdrawn by the local planning authority otherwise than in consequence of the grant by them of planning permission for the development to which the notice relates or for its retention or continuance without compliance with a condition or limitation subject to which a previous planning permission was granted;

• (d) the stop notice is withdrawn.

• (3) A prohibition in a stop notice shall be treated for the purposes of subsection (2) of this section as dependent on an allegation in an enforcement notice if and to the extent that the operations to which the prohibition in the stop notice relates are the same as those alleged in the enforcement notice to constitute a breach of planning control or are so closely associated therewith as to constitute substantially the same operations.

• (4) A claim for compensation under this section shall be made to the local planning authority within the time and in the manner prescribed by regulations under this Act.

• (5) The loss or damage in respect of which compensation is payable under this section in respect of a prohibition shall include a sum payable in respect of a breach of contract caused by the taking of action necessary to comply with the prohibition or of any liability arising by virtue of section 90(8) of this Act.

Supplementary provisions

General provisions as to compensation for depreciation under Part VIII

178

• (1) For the purpose of assessing any compensation to which this section applies, the rules set out in section 5 of the Land Compensation Act 1961 shall, so far as applicable and subject to any necessary modifications, have effect as they have effect for the purpose of assessing compensation for the compulsory acquisition of an interest in land.

• (2) This section applies to any compensation which, under the preceding provisions of this Part of this Act other than section 174, 175 or 177 is payable in respect of depreciation of the value of an interest in land.

• (3) Where an interest in land is subject to a mortgage—

• (a) any compensation to which this section applies, which is payable in respect of depreciation of the value of that interest, shall be assessed as if the interest were not subject to the mortgage;

• (b) a claim for any such compensation may be made by any mortgagee of the interest, but without prejudice to the making of a claim by the person entitled to the interest;

• (c) no compensation to which this section applies shall be payable in respect of the interest of the mortgagee (as distinct from the interest which is subject to the mortgage); and

• (d) any compensation to which this section applies which is payable in respect of the interest which is subject to the mortgage shall be paid to the mortgagee, or, if there is more than one mortgagee, to the first mortgagee, and shall in either case be applied by him as if it were proceeds of sale.

Determination of claims for compensation

179

• (1) Except in so far as may be otherwise provided by any tree preservation order or by any regulations made under this Act, any question of disputed compensation under this Part of this Act shall be referred to and determined by the Lands Tribunal.

• (2) In relation to the determination of any such question, the provisions of sections 2 and 4 of the Land Compensation Act 1961 shall apply, subject to any necessary modifications and to the provisions of any regulations made under this Act.

PART IX — Provisions Enabling Owner to Require Purchase of his Interest

Interests affected by planning decisions or orders

Purchase notice on refusal or conditional grant of planning permission

180

• (1) Where, on an application for planning permission to develop any land, permission is refused or is granted subject to conditions, then if any owner of the land claims—

• (a) that the land has become incapable of reasonably beneficial use in its existing state; and

• (b) in a case where planning permission was granted subject to conditions, that the land cannot be rendered capable of reasonably beneficial ,use by the carrying out of the permitted development in accordance with those conditions; and

• (c) in any case, that the land cannot be rendered capable of reasonably beneficial use by the carrying out of any other development for which planning permission has been granted or for which the local planning authority or the Secretary of State has undertaken to grant planning permission,

he may, within the time and in the manner prescribed by regulations under this Act, serve on the council of the county borough, London borough or county district in which the land is situated a notice requiring that council to purchase his interest in the land in accordance with the following provisions of this Part of this Act.

• (2) Where, for the purpose of determining whether the conditions specified in subsection (1) (a) to (c) of this section are fulfilled in relation to any. land, any question arises as to what is or would in any particular circumstances be a reasonably beneficial use of that land, then, in determining that question for that purpose, no account shall be taken of any prospective use of that land which would involve the carrying out of new development or which would contravene the condition set out in Schedule 18 to this Act.

• (3) In the application of Schedule 8 to this Act for the purposes of any determination under subsection (2) of this section—

• (a) paragraph 3 of that Schedule shall be construed as not extending to works involving any increase in the cubic content of a building erected after the appointed day (including any building resulting from the carrying out of such works as are described in paragraph 1 of that Schedule); and

• (b) paragraph 7 of that Schedule shall not apply to any such building.

• (4) For the purposes of this section the conditions referred to in sections 41 and 42 of this Act shall be disregarded, and no account shall be taken of any condition to which section 71 or 82 of this Act applies.

• (5) A person on whom there has been served a repairs notice under section 115 of this Act shall not in any case be entitled to serve a purchase notice under this section in respect of the building in question until the expiration of three months beginning with the date of the service of the repairs notice; and if during that period the council or the Secretary of State start the compulsory acquisition of the building in the exercise of their powers under section 114 of this Act, that person shall not be so entitled unless and until the compulsory acquisition is discontinued.

• (6) For the purposes of subsection (5) of this section a compulsory acquisition—

• (a) is started when the council or the Secretary of Stale, as the case may be, serve the notice required by paragraph 3(1)(b) of Schedule 1 to the Acquisition of Land (Authorisation Procedure) Act 1946 ; and

• (b) is discontinued, in the case of acquisition by a council, when they withdraw the compulsory purchase order or the Secretary of State decides not to confirm it and, in the case of acquisition by the Secretary of State, when he decides not to make the compulsory purchase order.

• (7) A notice under this section, or under any other provision of this Part of this Act to which this subsection is applied, is in this Act referred to as a " purchase notice ".

Action by council on whom purchase notice is served

181

• (1) The council on whom a purchase notice is served under section 180 of this Act shall, before the end of the period of three months beginning with the date of service of that notice, serve on the owner by whom the purchase notice was served a notice stating either—

• (a) that the council are willing to comply with the purchase notice; or

• (b) that another local authority or statutory undertakers specified in the notice under this subsection have agreed to comply with it in their place; or

• (c) that, for reasons specified in the notice under this subsection, the council are not willing to comply with the purchase notice and have not found any other local authority or statutory undertakers who will agree to comply with it in their place, and that they have transmitted a copy of the purchase notice to the Secretary of State, on a date specified in the notice under this subsection, together with a statement of the reasons so specified.

• (2) Where the council on whom a purchase notice is served by an owner have served on him a notice in accordance with subsection (1)(a) or (b) of this section, the council, or the other local authority or statutory undertakers specified in the notice, as the case may be, shall be deemed to be authorised to acquire the interest of the owner compulsorily in accordance with the relevant provisions, and to have served a notice to treat in respect thereof on the date of service of the notice under that subsection.

• (3) Where the council on whom a purchase notice is served by an owner propose to serve on him a notice in accordance with subsection (1)(c) of this section, they shall transmit a copy of the purchase notice to the Secretary of State, together with a statement of their reasons.

• (4) In this section "the relevant provisions" means the provisions of Part VI of this Act or, in the case of statutory undertakers, any statutory provision (however expressed) under which they have power, or may be authorised, to purchase land compulsorily for the purposes of their undertaking.

Procedure on reference of purchase notice to Secretary of State

182

• (1) Where a copy of a purchase notice is transmitted to the Secretary of State under section 181(3) of this Act, the Secretary of State shall consider whether to confirm the notice or to take other action under section 183 of this Act in respect thereof.

• (2) Before confirming a purchase notice or taking any other action under section 183 of this Act in respect thereof, the Secretary of State shall give notice of his proposed action—

• (a) to the person by whom the purchase notice was served;

• (b) to the council on whom the purchase notice was served ;

• (c) to the local planning authority for the area in which the land is situated ; and

• (d) if the Secretary of State proposes to substitute any other local authority or statutory undertakers for the council on whom the purchase notice was served, to that other local authority or those statutory undertakers.

• (3) If, within such period as may be specified in a notice under subsection (2) of this section, being a period of not less than twenty-eight days from the service of that notice, any of the persons, authorities or statutory undertakers on whom that notice is served so requires, the Secretary of State, before confirming the purchase notice or taking any other action under section 183 of this Act in respect thereof, shall afford to those persons, authorities and undertakers an opportunity of appearing before, and being heard by, a person appointed by the Secretary of State for the purpose.

• (4) Where the Secretary of State has given notice under sub section (2) of this section of his proposed action, and any of the persons, authorities and statutory undertakers concerned have appeared before and been heard by a person appointed by the Secretary of State for the purpose, and it then appears to the Secretary of State to be expedient to take action under section 183 of this Act otherwise than in accordance with the notice given by him, the Secretary of State may take that action accordingly

Action by Secretary of State in relation to purchase notice

183

• (1) Subject to the following provisions of this section and to section 184 of this Act, if the Secretary of State is satisfied that the conditions specified in section 180(1)(a) to (c) of this Act are fulfilled in relation to a purchase notice, he shall confirm the notice.

• (2) If it appears to the Secretary of State to be expedient to do so, he may, in lieu of confirming the purchase notice, grant planning permission for the development in respect of which the application was made, or, where planning permission for that development was granted subject to conditions, revoke or amend those conditions so far as appears to him to be required in order to enable the land to be rendered capable of reasonably beneficial use by the carrying out of that development.

• (3) If it appears to the Secretary of State that the land, or any part of the land, could be rendered capable of reasonably beneficial use within a reasonable time by the carrying out of any other development for which planning permission ought to be granted, he may, in lieu of confirming the purchase notice, or in lieu of confirming it so far as it relates to that part of the land, as the case may be, direct that planning permission for that development shall be granted in the event of an application being made in that behalf.

• (4) If it appears to the Secretary of State, having regard to the probable ultimate use of the land, that it is expedient to do so, he may, if he confirms the notice, modify it, either in relation to the whole or in relation to any part of the land to which it relates, by substituting another local authority or statutory undertakers for the council on whom the notice was served.

• (5) In section 182 of this Act, any reference to the taking of action by the Secretary of State under this section is a reference to the taking by him of any such action as is mentioned in subsections (1) to (4) of this section, or to the taking by him of a decision not to confirm the purchase notice either on the grounds that any of the conditions referred to in subsection (1) of this section are not fulfilled or by virtue of section 184 of this Act.

Power to refuse to confirm purchase notice where land has restricted use by virtue of previous planning permission

184

• (1) This section shall have effect where, on an application for planning permission to develop any land which has a restricted use by virtue of a previous planning permission, permission is refused or granted subject to conditions and an owner of the land serves a purchase notice under section 180 of this Act.

• (2) For the purposes of this section, land is to be treated as having a restricted use by virtue of a previous planning permission if it is part of a larger area in respect of which planning permission was previously granted (and has not been revoked) and either—

• (a) it remains a condition of the planning permission (however expressed) that that part shall remain undeveloped or be preserved or laid out in a particular way as amenity land in relation to the remainder; or

• (b) the planning permission was granted on an application which contemplated (expressly or by necessary implication) that the part should not be comprised in the development for which planning permission was sought, or should be preserved or laid out as aforesaid.

• (3) If a copy of the purchase notice is transmitted to the Secretary of State under section 181(3) of this Act the Secretary of State, although satisfied that the land has become incapable of reasonably beneficial use in its existing state, shall nevertheless not be required under section 183(1) of this Act to confirm the notice if it appears to him that the land ought, in accordance with the previous planning permission, to remain undeveloped or, as the case may be, remain or be preserved or laid out as amenity land in relation to the remainder of the large area for which that planning permission was granted.

Power to refuse to confirm purchase notice in respect of office premises

185

• (1) This section applies to any purchase notice served on or after 5th November 1964 (whether before or after the passing of this Act) in respect of land within the metropolitan region, or served on or after 5th August 1965 (whether before or after the passing of this Act) in respect of land which, at the date of service of the notice, is within a controlled area as defined in section 81(2) of this Act outside the metropolitan region, where either—

• (a) planning permission for the carrying out on that land, or part of it, of development to which section 74 of this Act applies was granted before 5th August 1965. but by virtue of paragraph 1(4) of Schedule 12 to this Act that planning permission is for the time being deemed not to have effect; or

• (b) the purpose for which that land, or part of it, is or was used at the date of service of the notice, or was last used before that date, is or was that of a building containing office premises.

• (2) In relation to a purchase notice to which this section applies, the provisions of this Act shall have effect as if, after subsection (4) of section 183 of this Act, there were inserted the following subsection—

(4A) Where the purchase notice is one to which section 185 of this Act applies, the Secretary of State may, if he thinks fit, determine not to confirm the notice without taking any such action as is mentioned in subsections (2) to (4) of this section

,

and as if, in subsection (5) of that section, after the words " by virtue of " there were inserted the words " subsection (4A) of this section or "

• (3) Where in pursuance of subsection (4A) of the said section 183 (as modified by subsection (2) of this section) the Secretary of State has determined not to confirm a purchase notice to which this section applies, and on a subsequent date the land to which that notice related ceases to be within an area to which section 74 of this Act applies—

• (a) a further purchase notice may be served on or after that date in respect of the planning decision to which the previous notice related ; and

• (b) for the purposes of any regulations made under this Act as to the time within which a purchase notice may be served, the service of such a further purchase notice shall not be treated as out of time if it is served within the period which would be applicable in accordance with those regulations if the planning decision referred to in the preceding paragraph had been made on that subsequent date.

• (4) In determining, for the purposes of subsection (1)(b) of this section, for what purpose any land is used, or was last used, as the case may be, no account shall be taken—

• (a) of any use in accordance with planning permission granted for a limited period ; or

• (b) of any use in respect of which, before the date of service of the purchase notice, an enforcement notice had been served and had become effective; or

• (c) of any use of land at a time when it is or was not covered by a building.

• (5) For the purposes of this section " office premises " has the meaning assigned by section 73(4) of this Act and this section shall have effect as if it were included in sections 73 to 86 of this Act.

• (6) Notwithstanding subsection (5) of this section, subsection (3) of this section shall not cease to have effect at the end of the period mentioned in section 86 of this Act; and in relation to any land which, immediately before the end of that period, is land within an area to which section 74 of this Act applies, any reference in that subsection to the date on which the land ceases to be within such an area shall be construed as a reference to the end of that period.

Effect of Secretary of State's action in relation to purchase notice

186

• (1) Where the Secretary of State confirms a purchase notice, the council on whom the purchase notice was served (or, if under section 183(4) of this Act the Secretary of State modified the purchase notice by substituting another local authority or statutory undertakers for that council, that other local authority or those statutory undertakers) shall be deemed to be authorised to acquire the interest of the owner compulsorily in accordance with the relevant provisions and to have served a notice to treat in respect thereof on such date as the Secretary of State may direct.

• (2) If, before the end of the relevant period, the Secretary of State has neither confirmed the purchase notice nor taken any such action in respect thereof as is mentioned in section 183(2) or (3) of this Act, and has not notified the owner by whom the notice was served that he does not propose to confirm the notice, the notice shall be deemed to be confirmed at the end of that period, and the council on whom the notice was served shall be deemed to be authorised to acquire the interest of the owner compulsorily in accordance with the relevant provisions and to have served a notice to treat in respect thereof at the end of that period.

• (3) For the purposes of subsection (2) of this section the relevant period is whichever of the following periods first expires, that is to say—

• (a) the period of nine months beginning with the date of service of the purchase notice; and

• (b) the period of six months beginning with the date on which a copy of the purchase notice was transmitted to the Secretary of State.

• (4) Where the Secretary of State has notified the owner by whom a purchase notice has been served of a decision on his part to confirm, or not to confirm, the notice (including any decision not to confirm the notice in respect of part of the land to which it relates, and including any decision to grant any permission, or give any direction, in lieu of confirming the notice, either wholly or in part) .and that decision of the Secretary of State is quashed under the provisions of Part XII of this Act, the purchase notice shall be treated as cancelled, but the owner may serve a further purchase notice in its place.

• (5) For the purposes of any regulations made under this Act as to the time within which a purchase notice may be served, the service of a purchase notice under subsection (4) of this section shall not be treated as out of time if the notice is served within the period which would be applicable in accordance with those regulations if the planning decision, in consequence of which the notice is served, had been made on the date on which the decision of the Secretary of State was quashed as mentioned in subsection (4) of this section.

• (6) In this section " the relevant provisions " has the same meaning as in section 181 of this Act.

Special provisions as to compensation where purchase notice served

187

• (1) Where by virtue of section 164 of this Act compensation is payable in respect of expenditure incurred in carrying out any work on land, then, if a purchase notice is served in respect of an interest in that land, any compensation payable in respect of the acquisition of that interest in pursuance of the purchase notice shall be reduced by an amount equal to the value of the works in respect of which compensation is payable by virtue of that section.