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Land Compensation Act 1973

Type Public General Act

Publication 1973-05-23

Last updated 2026-08-12

State In force

Department Statute Law Database

Source legislation.gov.uk

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(iv) a decision is made under paragraph 4AA(2)(a) of Schedule 1 to that Act (decision that conditions subject to which order was made have been met);

(b) in the case of a compulsory acquisition which is to be authorised by any other order, the order is made or confirmed in accordance with the procedures which apply by virtue of the Act under which it is made;

(c) in the case of a compulsory acquisition which does not fall within paragraph (a) or (b) and which is deemed to be authorised following service of a notice by the owner requiring the purchase of their interest, a notice to treat is deemed to have been served;

(d) in the case of a compulsory acquisition which does not fall within paragraph (a), (b) or (c) and which is to be authorised by a special enactment, the enactment is passed.

(7) In subsection (6), references to a compulsory acquisition are to the compulsory acquisition in consequence of which the person is displaced.

(8) The appropriate national authority may by regulations amend subsections (4) and (5).

(9) In this section—

“appropriate national authority” means—the Secretary of State, in relation to England;the Welsh Ministers, in relation to Wales;

“special enactment” means—a local or private Act which authorises the compulsory acquisition of land specifically identified in that Act, ora provision which—is contained in an Act other than a local or private Act, andauthorises the compulsory acquisition of land specifically identified in that Act.

(10) The power to make regulations under subsection (8) must be exercised by statutory instrument subject to annulment in pursuance of a resolution of—

(a) either House of Parliament, in the case of regulations made by the Secretary of State;

(b) Senedd Cymru, in the case of regulations made by the Welsh Ministers.

Home loss payments for certain caravan dwellers.

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(1) Sections 29 to 32A above shall, so far as applicable, have effect in relation to a person residing in a caravan on a caravan site who is displaced from that site as they have effect in relation to a person displaced from a dwelling on any land but shall so have effect subject to the following modifications.

(2) No home loss payment or discretionary payment shall be made to any person by virtue of this section except where no suitable alternative site for stationing a caravan is available to him on reasonable terms.

(3) Subsection (1) of section 29 above shall have effect as if for the words preceding paragraph (a) there were substituted the words “Where a person residing in a caravan on a caravan site is displaced from that site in consequence of” and subsection (2) of that section shall have effect as if for paragraphs (a) and (b) there were substituted—

(a) he has been in occupation of the caravan site by using a caravan stationed on it as his only or main residence; and (b) he has been in such occupation of the site by virtue of an interest or right to which this section applies.

(4) Section 30 above shall have effect as if the references to a person occupying a dwelling by virtue of an interest in it and to his interest in the dwelling were to a person occupying a caravan site by virtue of an interest in it and to that interest.

(5) Section 32 above shall have effect—

(a) as if in subsections (3) and (3A) the references to a dwelling were to a caravan site;

(b) as if in subsection (4) for the words “resided in the dwelling, or a substantial part of it” there were substituted the words “resided in a caravan on the caravan site”; and

(5) Where any land comprises two or more caravan sites and the claimant has successively been in occupation of or resided in a caravan on different caravan sites on that land, section 29(2) above and subsections (3) to (4) above shall have effect as if those sites were the same site.

(6) Sections 29 to 32A above shall have effect as if in any provision not modified as aforesaid for any reference to a dwelling or land there were substituted a reference to a caravan site.

(7) In this section “caravan site” means land on which a caravan is stationed for the purpose of human habitation and land which is used in conjunction with land on which a caravan is so stationed.

Other loss payments

Basic loss payment

33A

(1) This section applies to a person—

(a) if he has a qualifying interest in land,

(b) if the interest is acquired compulsorily, and

(1A) In a case where the qualifying interest is in land in England, a person to whom this section applies is entitled to payment of whichever is the lower of the following amounts—

(a) 2.5% of the value of the interest;

(b) £25,000.

(2) In a case where the qualifying interest is in land in Wales, a person to whom this section applies is entitled to payment of whichever is the lower of the following amounts—

(a) 7.5% of the value of his interest;

(b) £75,000.

(3) A payment under this section must be made by the acquiring authority.

(4) An interest in land is a qualifying interest if it is a freehold interest or an interest as tenant and (in either case) it subsists for a period of not less than one year ending with whichever is the earliest of—

(a) the date on which the acquiring authority takes possession of the land under section 11 of the Compulsory Purchase Act 1965 (entry to take possession of land);

(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(c) the vesting date (within the meaning of the Compulsory Purchase (Vesting Declarations) Act 1981) if a declaration is made under section 4 of that Act (general vesting declaration);

(d) the date on which compensation is agreed between the person and the acquiring authority;

(e) the date on which the amount of compensation is determined by the Upper Tribunal.

(5) The compulsory acquisition of an interest in land includes acquisition of the interest in consequence of the service of—

(a) a purchase notice under section 137 of the Town and Country Planning Act 1990 (right to require purchase of certain interests);

(b) a notice under section 150 of that Act (purchase of blighted land).

(6) The value of an interest is its value for the purpose of deciding the amount of compensation payable in respect of the acquisition (including in accordance with section 14A of the Land Compensation Act 1961 (cases where prospect of planning permission to be ignored)); but this is subject to subsections (7) and (8).

(7) If an interest consists partly of a dwelling in respect of which the person is entitled to a home loss payment the value of the interest is the value of the whole interest less the value of so much of the interest as is represented by the dwelling.

(8) If rule (5) of section 5 of the Land Compensation Act 1961 (equivalent reinstatement) applies for the purpose of assessing the amount of compensation the value of the interest is nil.

Occupier’s loss payment: agricultural land

33B

(1) This section applies to a person if—

(a) he has a qualifying interest in land for the purposes of section 33A,

(b) the land is agricultural land,

(d) he occupied the land for the period specified in section 33A(4).

(1A) In a case where the qualifying interest is in land in England, a person to whom this section applies is entitled to a payment of whichever is the greatest of the following amounts—

(a) 7.5% of the value of the interest;

(b) the land amount;

(1B) But the maximum amount which may be paid to a person under subsection (1A) in respect of an interest in land is £75,000.

(2) In a case where the qualifying interest is in land in Wales, a person to whom this section applies is entitled to a payment of whichever is the greatest of the following amounts—

(a) 2.5% of the value of his interest;

(b) the land amount;

(3) But the maximum amount which may be paid to a person under subsection (2) in respect of an interest in land is £25,000.

(4) A payment under this section must be made by the acquiring authority.

(5) The value of an interest is its value for the purpose of deciding the amount of compensation payable in respect of the acquisition (including in accordance with section 14A of the Land Compensation Act 1961 (cases where prospect of planning permission to be ignored)); but this is subject to subsections (6) and (7).

(6) If an interest consists partly of a dwelling in respect of which the person is entitled to a home loss payment the value of the interest is the value of the whole interest less the value of so much of the interest as is represented by the dwelling.

(7) If rule (5) of section 5 of the Land Compensation Act 1961 (equivalent reinstatement) applies for the purpose of assessing the amount of compensation the value of the interest is nil.

(7A) In the case of land in England, the land amount is the greater of £900 and the amount found in accordance with the following Table—

Area of the land	Amount per hectare
Not exceeding 100 hectares	£300 per hectare or part of a hectare
Exceeding 100 hectares	£300 per hectare for the first 100 hectares;£150 per hectare for the next 300 hectares or part of a hectare.

(8) In the case of land in Wales, the land amount is the greater of £300 and the amount found in accordance with the following Table—

Area of the land	Amount per hectare
Not exceeding 100 hectares	£100 per hectare or part of a hectare
Exceeding 100 hectares	(a) £100 per hectare for the first 100 hectares;(b) £50 per hectare for the next 300 hectares or part of a hectare.

(8A) In the case of land in England, the buildings amount is £75 per square metre (or part of a square metre) of the gross floor space of any buildings on the land.

(9) In the case of land in Wales the buildings amount is £25 per square metre (or part of a square metre) of the gross floor space of any buildings on the land.

(10) The gross floor space must be measured externally.

Occupier’s loss payment: other land

33C

(1) This section applies to a person if—

(a) he has a qualifying interest in land for the purposes of section 33A,

(b) the land is not agricultural land,

(d) he occupied the land for the period specified in section 33A(4).

(1A) In a case where the qualifying interest is in land in England, a person to whom this section applies is entitled to a payment of whichever is the greatest of the following amounts—

(a) 7.5% of the value of the interest;

(b) the land amount;

(1B) But the maximum amount which may be paid to a person under subsection (1A) in respect of an interest in land is £75,000.

(2) In a case where the qualifying interest is in land in Wales, a person to whom this section applies is entitled to a payment of whichever is the greatest of the following amounts—

(a) 2.5% of the value of his interest;

(b) the land amount;

(3) But the maximum amount which may be paid to a person under subsection (2) in respect of an interest in land is £25,000.

(4) A payment under this section must be made by the acquiring authority.

(5) The value of an interest is its value for the purpose of deciding the amount of compensation payable in respect of the acquisition (including in accordance with section 14A of the Land Compensation Act 1961 (cases where prospect of planning permission to be ignored)); but this is subject to subsections (6) and (7).

(6) If an interest consists partly of a dwelling in respect of which the person is entitled to a home loss payment the value of the interest is the value of the whole interest less the value of so much of the interest as is represented by the dwelling.

(7) If rule (5) of section 5 of the Land Compensation Act 1961 (equivalent reinstatement) applies for the purpose of assessing the amount of compensation the value of the interest is nil.

(7A) In the case of land in England, the land amount is the greater of—

(a) £7,500;

(b) £7.50 per square metre (or part of a square metre) of the area of the land.

(7B) But if only part of land in which a person has an interest is acquired, for the figure specified in subsection (7A)(a) there is substituted £900.

(8) In the case of land in Wales, the land amount is the greater of—

(a) £2,500;

(b) £2.50 per square metre (or part of a square metre) of the area of the land.

(9) But if only part of land in which a person has an interest is acquired, for the figure specified in subsection (8)(a) there is substituted £300.

(9A) In the case of land in England, the buildings amount is £75 per square metre (or part of a square metre) of the gross internal floor space of any buildings on the land.

(10) In the case of land in Wales, the buildings amount is £25 per square metre (or part of a square metre) of the gross internal floor space of any buildings on the land.

(11) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Loss payments: exclusions

33D

(1) This section applies to a person if—

(a) he is a person to whom section 33A, 33B or 33C applies,

(b) a notice falling within subsection (4) has been served on him in relation to the land mentioned in that section,

(d) he has failed to comply with any requirement of the notice.

(2) This section also applies to a person if—

(a) he is a person to whom section 33A, 33B or 33C applies,

(b) a copy of an order falling within subsection (5) has been served on him in relation to the land mentioned in that section, and

(3) No payment may be made under section 33A, 33B or 33C to a person to whom this section applies.

(4) These are the notices—

(a) notice under section 215 of the Town and Country Planning Act 1990 (power to require proper maintenance of land);

(b) notice under section 11 of the Housing Act 2004 (improvement notice relating to category 1 hazard);

(d) notice under section 48 of the Planning (Listed Buildings and Conservation Areas) Act 1990 or section 138 of the Historic Environment (Wales) Act 2023 (repairs notice prior to compulsory notice of acquisition of listed building).

(5) These are the orders—

(a) an order under section 20 of the Housing Act 2004 (prohibition order relating to category 1 hazard);

(b) an order under section 21 of that Act (prohibition order relating to category 2 hazard);

(d) an order under section 265 of the Housing Act 1985 (demolition order relating to category 1 or 2 hazard).

(6) For the purposes of subsection (1)(c), the relevant time is the date on which any of the following occurs—

(a) in the case of a compulsory acquisition which is to be authorised by a compulsory purchase order to which the Acquisition of Land Act 1981 applies—

(i) the compulsory purchase order is confirmed, other than conditionally, under section 13 or 13A of the Acquisition of Land Act 1981;

(ii) the compulsory purchase order is made, other than conditionally, under paragraph 4 or 4A of Schedule 1 to that Act;

(iii) a decision is made under section 13BA(2)(a) of that Act (decision that conditions subject to which order was confirmed have been met);

(iv) a decision is made under paragraph 4AA(2)(a) of Schedule 1 to that Act (decision that conditions subject to which order was made have been met);

(b) in the case of a compulsory acquisition which is to be authorised by any other order, the order is made or confirmed in accordance with the procedures which apply by virtue of the Act under which it is made;

(c) in the case of a compulsory acquisition which does not fall within paragraph (a) or (b) and which is deemed to be authorised following service of a notice by the owner requiring the purchase of their interest, a notice to treat is deemed to have been served;

(d) in the case of a compulsory acquisition which does not fall within paragraph (a), (b) or (c) and which is to be authorised by a special enactment, the enactment is passed.

(6A) In subsection (6)—

“special enactment” means—a local or private Act which authorises the compulsory acquisition of land specifically identified in that Act, ora provision which—is contained in an Act other than a local or private Act, andauthorises the compulsory acquisition of land specifically identified in that Act;references to a compulsory acquisition are to the compulsory acquisition of the person’s interest in land.

(7) The Secretary of State may by regulations amend subsections (4) and (5).

Claims

33E

(1) This section applies for the purposes of sections 33A to 33C.

(2) A claim for payment must be made in writing to the acquiring authority.

(3) The claim must give such particulars as the authority may reasonably require for the purpose of deciding—

(a) whether a payment is to be made;

(b) the amount of any such payment.

(4) For the purposes of the Limitation Act 1980 a person’s right of action to recover a payment must be taken to have accrued—

(a) in the case of a claim under section 33A on the last day of the period specified in subsection (4) of that section;

(b) in the case of a claim under section 33B or 33C on the date of his displacement from the land.

Insolvency

33F

(1) This section applies if a person is entitled to a payment under section 33A, 33B or 33C but before a claim is made under section 33E insolvency proceedings are started in relation to the person.

(2) Any of the following may make a claim instead of the person mentioned in subsection (1)—

(a) a receiver, trustee in bankruptcy or the official receiver in the case of an individual;

(b) an administrator, administrative receiver, liquidator or provisional liquidator or the official receiver in the case of a company or a partnership.

(3) Insolvency proceedings are—

(a) proceedings in bankruptcy;

(b) proceedings under the Insolvency Act 1986 for the winding up of a company or an unregistered company (including voluntary winding up of a company under Part 4 of that Act);

Death

33G

(1) This section applies if a person is entitled to a payment under section 33A, 33B or 33C but before a claim is made under section 33E the person dies (the deceased).

(2) A claim may be made by a person who—

(a) occupied the land for a period of not less than one year ending with the date on which the deceased is displaced from the land, and

(b) is entitled to benefit on the death of the deceased by virtue of a ground mentioned in subsection (3).

(3) The grounds are—

(a) a testamentary disposition;

(b) the law of intestate succession;

Agricultural land: dual entitlement

33H

(1) This section applies if a person is entitled in respect of the same interest in agricultural land to a payment both—

(a) under section 33B of this Act, and

(b) by virtue of section 12(1) of the Agriculture (Miscellaneous Provisions) Act 1968 (additional payments in consequence of compulsory acquisition of agricultural holding).

(2) Payment may be made in respect of only one entitlement.

(3) If the person makes a claim under both provisions he must be paid in respect of the entitlement which produces the greater amount.

Payment

33I

(1) Any dispute as to the amount of a payment to be made under section 33A, 33B or 33C must be determined by the Upper Tribunal.

(2) The acquiring authority must make any payment required by section 33A not later than whichever is the latest of the following dates—

(a) the last day of the period specified in section 33A(4);

(b) the last day of the period of three months beginning with the day the claim is made;

(3) The authority must make any payment required by section 33B or 33C not later than whichever is the latest of the following dates—

(a) the date the person is displaced from the land;

(b) the last day of the period of three months beginning with the day the claim is made;

(4) If paragraph (c) of subsection (2) or (3) applies the authority may at any time make a payment in advance to the person entitled to a payment (the claimant).

(5) If when the value of the interest is agreed or determined the amount of a payment made under subsection (4) differs from the payment required by section 33A, 33B or 33C—

(a) the amount by which the advance payment exceeds the payment required must be repaid by the claimant to the authority;

(b) the amount by which the payment required exceeds the advance payment must be paid by the authority to the claimant.

(6) The acquiring authority must pay interest on the amount required to be paid at the rate prescribed by regulations under section 32 of the Land Compensation Act 1961.

(7) Interest accrues from the date specified in paragraph (a) of subsection (2) or (3) (as the case may be).

(8) The authority may, at the request of the person entitled to the payment, make a payment on account of the interest mentioned in subsection (6).

Acquisition by agreement

33J

(1) This section applies if—

(a) an interest in land which is a qualifying interest for the purpose of section 33A is acquired by agreement by an authority which has power to acquire the interest compulsorily, and

(b) the interest is acquired from a person who would be entitled to a payment under section 33A, 33B or 33C if the interest is acquired compulsorily.

(2) The authority may make a payment to the person of an amount equal to the amount they would be required to pay if the interest is acquired compulsorily.

Regulations

33K

(1) This section applies for the purposes of sections 33A to 33I.

(2) The Secretary of State may by regulations substitute for any amount or percentage figure specified in these sections such other amount or percentage figure (as the case may be) as he thinks fit.

(3) Except as provided in the following provisions of this section, a power to make regulations must be exercised by statutory instrument subject to annulment in pursuance of a resolution of either House of Parliament.

(4) This subsection applies to regulations under subsection (2) which substitute—

(a) a percentage figure, or

(b) an amount, in a case where the change in value condition is not satisfied.

(5) A statutory instrument containing regulations to which subsection (4) applies must not be made unless a draft of the regulations has been laid before and approved by resolution of each House of Parliament.

(6) The change in value condition is satisfied if the Secretary of State thinks that in the case of the substitution of an amount it is expedient to make the substitution in consequence of changes in the value of money or land.

(7) Regulations under subsection (2) may make different provision for different purposes.

Farm loss payments

Right to farm loss payment where person displaced from agricultural unit.

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Amount of farm loss payment.

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Supplementary provisions about farm loss payments.

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Disturbance payments

Disturbance payments for persons without compensatable interests.

37

(1) Where a person is displaced from any land in consequence of—

(a) the acquisition of the land by an authority possessing compulsory purchase powers;

(b) the making of a housing order in respect of a house or building on the land;

(c) where the land has been previously acquired by an authority possessing compulsory purchase powers or appropriated by a local authority and is for the time being held by the authority for the purposes for which it was acquired or appropriated, the carrying out of any improvement to a house or building on the land or of redevelopment on the land,

(d) the carrying out of any improvement to a house or building on the land or of re-development on the land by a housing association which has previously acquired the land and at the date of the displacement is either a private registered provider of social housing or a registered social landlord within the meaning of the Housing Act 1985 (see section 5(4) and (5) of that Act);

he shall, subject to the provisions of this section, be entitled to receive a payment (hereafter referred to as a “disturbance payment”) from

(i) where paragraph (a) above applies, the acquiring authority;

(ii) where paragraph (b) above applies, the authority who made the housing order;

(iii) where paragraph (c) above applies, the authority carrying out the improvement or redevelopment; and

(iv) where paragraph (d) above applies, the housing association carrying out the improvement or redevelopment.

(2) A person shall not be entitled to a disturbance payment—

(a) in any case, unless he is in lawful possession of the land from which he is displaced;

(b) in a case within subsection (1)(a) above, unless either—

(i) he has no interest in the land for the acquisition or extinguishment of which he is (or if the acquisition or extinguishment were compulsory would be) entitled to compensation under any other enactment; or

(ii) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(c) in a case within subsection (1)(b) above, if he is entitled to a payment under section 584A(1) of the Housing Act 1985 (compensation payable in case of prohibition and demolition orders).

(d) in a case within subsection (1)(d) above, unless the displacement occurred on or after 31st July 1974 (on which date the Housing Act 1974 was passed).

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) For the purposes of subsection (1) above a person shall not be treated as displaced in consequence of any such acquisition improvement or redevelopment as is mentioned in paragraph (a), (c) or (d) of that subsection unless he was in lawful possession of the land—

(a) in the case of land acquired under a compulsory purchase order, at the time when notice was first published of the making of the compulsory purchase order prior to its submission for confirmation or, where the order did not require confirmation, of the preparation of the order in draft;

(b) in the case of land acquired under an Act specifying the land as subject to compulsory acquisition, at the time when the provisions of the Bill for that Act specifying the land were first published;

and a person shall not be treated as displaced in consequence of a housing order within paragraph (b) of that subsection unless he was in lawful possession as aforesaid at the time when the order was made.

(3A) For the purposes of subsection (1) above a person shall not be treated as displaced in consequence of the carrying out of any improvement to a house or building unless he is permanently displaced in consequence of the carrying out of that improvement.

(4) Where a person is displaced from land in circumstances such that, apart from this subsection, he would be entitled to a disturbance payment from any authority and also to compensation from that authority under section 37 of the Landlord and Tenant Act 1954 (compensation from landlord where order for new tenancy of business premises precluded on certain grounds) he shall be entitled, at his option, to one or the other but not to both.

(5) Where a person is displaced from any land as mentioned in subsection (1) above but is not entitled, as against the authority there mentioned, to a disturbance payment or to compensation for disturbance under any other enactment, the authority may, if they think fit, make a payment to him determined in accordance with section 38(1) to (3) below.

(6) A disturbance payment shall carry interest, at the rate for the time being prescribed under section 32 of the Land Compensation Act 1961. . . , from the date of displacement until payment.

(7) This section does not apply to any land which is used for the purposes of agriculture.

(8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(9) In this section “a housing order. . . ...”“improvement” and “redevelopment” have the same meaning as in section 29 above.

(10) This section applies if the date of displacement is on or after 17th October 1972.

Amount of disturbance payment.

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(1) The amount of a disturbance payment shall be equal to—

(a) the reasonable expenses of the person entitled to the payment in removing from the land from which he is displaced; and

(b) if he was carrying on a trade or business on that land, the loss he will sustain by reason of the disturbance of that trade or business consequent upon his having to quit the land.

(2) In estimating the loss of any person for the purposes of subsection (1)(b) above, regard shall be had to the period for which the land occupied by him may reasonably have been expected to be available for the purposes of his trade or business and to the availability of other land suitable for that purpose.

This subsection has effect subject to section 46(7) below.

(3) Where the displacement is from a dwelling in respect of which structural modifications have been made for meeting the special needs of a disabled person (whether or not the person entitled to the disturbance payment) then, if—

(a) a local authority in England having functions under Part 1 of the Care Act 2014 or a local authority in Wales having functions under Part 4 of the Social Services and Well-being (Wales) Act 2014 , . . . , provided assistance, or

(b) such an authority would, if an application had been made, have provided assistance,

for making those modifications, the amount of the disturbance payment shall include an amount equal to any reasonable expenses incurred by the person entitled to the payment in making, in respect of a dwelling to which the disabled person removes, comparable modifications which are reasonably required for meeting the disabled person’s special needs.

(4) Any dispute as to the amount of a disturbance payment shall be referred to and determined by the Upper Tribunal . . . .

Rehousing

Duty to rehouse residential occupiers.

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(1) Where a person is displaced from residential accommodation on any land in consequence of—

(a) the acquisition of the land by an authority possessing compulsory purchase powers;

(b) the making of a housing order in respect of a house or building on the land;

(c) where the land has been previously acquired by an authority possessing compulsory purchase powers or appropriated by a local authority and is for the time being held by the authority for the purposes for which it was acquired or appropriated, the carrying out of any improvement to a house or building on the land or of redevelopment on the land,

(d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

and suitable alternative residential accommodation on reasonable terms is not otherwise available to that person, then, subject to the provisions of this section, it shall be the duty of the relevant authority to secure that he will be provided with such other accommodation.

(2) Subsection (1) above shall not by virtue of paragraph (a) thereof apply to a person if the acquisition is in pursuance of the service by him of a blight notice within the meaning of section 149 of the Town and Country Planning Act 1990 . . .

(3) Subsection (1) above shall not apply to any person who is a trespasser on the land or who has been permitted to reside in any house or building on the land pending its demolition or improvement.

(4) Subsection (1) above shall not apply to any person to whom money has been advanced—

(a) under section 41 below;

(b) under the Small Dwellings Acquisition Acts 1899 to 1923 or section 43 of the Housing (Financial Provisions) Act 1958 or section 435 of the Housing Act 1985;

(d) by a development corporation or the new towns residuary body otherwise than under section 41 below,

(f) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

for the purpose of enabling him to obtain accommodation in substitution for that from which he is displaced as mentioned in that subsection.

(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(6) For the purposes of subsection (1) above a person shall not be treated as displaced in consequence of any such acquisition improvement or redevelopment as is mentioned in paragraph (a) or (c) of that subsection unless he was residing in the accommodation in question—

(a) in the case of land acquired under a compulsory purchase order, at the time when notice was first published of the making of the order prior to its submission for confirmation or, where the order did not require confirmation, of the preparation of the order in draft;

(b) in the case of land acquired under an Act specifying the land as subject to compulsory acquisition, at the time when the provisions of the Bill for the Act specifying the land were first published;

and a person shall not be treated as displaced in consequence of a housing order within paragraph (b) of that subsection unless he was residing in the accommodation in question at the time when the order was made.

(6A) For the purposes of subsection (1) above a person shall not be treated as displaced in consequence of the carrying out of any improvement to a house or building unless he is permanently displaced from the residential accommodation in question in consequence of the carrying out of that improvement.

(7) Subject to subsection (8) below, the ’relevant authority’ for the purpose of this section is the local housing authority within the meaning of the Housing Act 1985.

(8) Where the land is in an area designated as the site of a new town—

(a) paragraph (c) of subsection (1) above shall apply if the land on which the redevelopment is carried out has been previously acquired by the development corporation and is for the time being held either by that corporation or by the new towns residuary body;

(b) if the authority by whom the land is acquired or redeveloped is the development corporation, that corporation shall, in a case falling within paragraph (a) or (c) of that subsection, be the relevant authority for the purposes of this section;

(c) if the authority by whom the land is redeveloped is the new towns residuary body, that body shall, in a case falling within paragraph (c) of that subsection, be the relevant authority for the purposes of this section.

(d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(8A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(9) In this section—

(a) “a housing order . . . ...” “improvement” and “redevelopment” have the same meaning as in section 29 above.

(b) “new towns residuary body” means—

(i) in relation to England, the Homes and Communities Agency so far as exercising functions in relation to anything transferred (or to be transferred) to it as mentioned in section 52(1)(a) to (d) of the Housing and Regeneration Act 2008 or the Greater London Authority so far as exercising its new towns and urban development functions; and

(ii) in relation to Wales, the Welsh Ministers so far as exercising functions in relation to anything transferred (or to be transferred) to them as mentioned in section 36(1)(a)(i) to (iii) of the New Towns Act 1981.

Duty to rehouse certain caravan dwellers.

40

(1) Section 39 above shall, so far as applicable, have effect in relation to a person residing in a caravan on a caravan site who is displaced from that site as it has effect in relation to a person displaced from residential accommodation on any land but shall so have effect subject to the following modifications.

(2) Subsection (1) of the said section 39 shall have effect—

(a) as if for the words preceding paragraph (a) there were substituted the words “Where a person residing in a caravan on a caravan site is displaced from that site in consequence of”; and

(b) as if for the words following paragraph (c) there were substituted the words “and neither suitable residential accommodation nor a suitable alternative site for stationing a caravan is available to that person on reasonable terms, then, subject to the provisions of this section, it shall be the duty of the relevant authority to secure that he will be provided with suitable residential accommodation”.

(3) Subsection (6) of the said section 39 shall have effect as if in the words preceding paragraph (a) for the words “unless he was residing in the accommodation in question” there were substituted the words “unless he was residing in a caravan on the caravan site in question”.

(4) The said section 39 shall have effect as if in any provision not modified as aforesaid for any reference to land there were substituted a reference to a caravan site.

(5) In this section “caravan site” has the same meaning as in section 33 above.

Power of relevant authority to make advances repayable on maturity to displaced residential owner-occupiers.

41

(1) Where a person displaced from a dwelling in consequence of any of the matters mentioned in subsection (1)(a), (b) or (c) of section 39 above—

(a) is an owner-occupier of the dwelling; and

(b) wishes to acquire or construct another dwelling in substitution for that from which he is displaced,

the relevant authority for the purposes of that section may advance money to him for the purpose of enabling him to acquire or construct the other dwelling.

(2) The power conferred by this section shall be exercisable subject to such conditions as may be approved by the Secretary of State and the following provisions shall apply with respect to any advance made in the exercise of that power.

(3) The advance shall be made—

(a) on terms providing for the payment of the principal—

(i) at the end of a fixed period, with or without a provision allowing the authority to extend that period; or

(ii) upon notice given by the authority,

subject, in either case, to a provision for earlier repayment on the happening of a specified event;

(b) on such other terms as the authority may think fit having regard to all the circumstances.

(4) An advance for the construction of a dwelling may be made by instalments from time to time as the works of construction progress.

(5) The principal of the advance, together with interest thereon, shall be secured by a mortgage of the borrower’s interest in the dwelling, and the amount of the principal shall not exceed the value which, in accordance with a valuation duly made on behalf of the relevant authority, it is estimated that the borrower’s interest will bear or, as the case may be, will bear when the dwelling has been constructed.

(6) Before advancing money under this section the relevant authority shall satisfy themselves that the dwelling to be acquired is or will be made, or that the dwelling to be constructed will on completion be, in all respects fit for human habitation.

(7) While the payment of the principal of an advance made by a local authority under this section is not required in accordance with the terms of the advance, the local authority may suspend, with respect to so much of any sum borrowed by them as is referable to the advance or with respect to any sum paid in respect of the advance out of their Consolidated Loans Fund, any periodical provision for repayment that may be required by any enactment or by any scheme (whether made under section 55 of the Local Government Act 1958 or under any local enactment) by which the Fund was established.

(8) The power conferred by this section on a relevant authority is without prejudice to any power to advance money exercisable by the authority under any other enactment.

(9) In this section “owner-occupier”, in relation to any dwelling, means a person who occupies it on the date of displacement and either—

(a) occupies it on that date in right of a freehold interest therein or a tenancy thereof granted or extended for a term of years certain of which not less than three years remain unexpired; or

(b) if the displacement is in consequence of the matters mentioned in paragraph (c) of section 39(1) above, occupied it in right of such an interest or tenancy on the date on which the land was acquired or appropriated as mentioned in that paragraph.

(10) In this section references to the construction of a dwelling include references to the acquisition of a building and its conversion into a dwelling and to the conversion into a dwelling of a building previously acquired.

(11) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Duty of displacing authority to indemnify rehousing or lending authority for net losses.

42

(1) Where a relevant authority within the meaning of section 39 above provide or secure the provision of accommodation for any person in pursuance of subsection (1)(a) or (c) of that section, then, if—

(a) the authority providing the accommodation (“the rehousing authority”) are not the same as the authority by whom the land in question is acquired or redeveloped (“the displacing authority”); and

(b) the displacing authority are not an authority having functions under Part II of the Housing Act 1985 or (if they are such an authority) the land is acquired or redeveloped by them otherwise than in the discharge of those functions

the displacing authority shall make to the rehousing authority periodical payments, or if the rehousing authority so require a lump sum payment, by way of indemnity against any net loss in respect of the rehousing authority’s provision of that accommodation which may be incurred by that authority in any year during the period of ten years commencing with the year in which the accommodation is first provided.

(2) For the purposes of subsection (1) above a local authority incur a net loss in respect of their provision of accommodation for a person whom they are rehousing—

(a) if they rehouse him in a dwelling provided by them under Part II of the said Act 1985, , for the purpose of rehousing him; or

(b) if—

(i) they rehouse him in a Housing Revenue Account dwelling not so provided , and

(ii) provide under the said Part II in the year immediately preceding that in which he first occupies it, or in the period of three years commencing with the year in which he first occupies it, a dwelling of a similar type or size.

(3) Where money has been advanced to a person as mentioned in section 39(4) above, then if—

(a) the authority making the advance (“the lending authority”) are not the same as the displacing authority; and

(b) the lending authority incur a net loss in respect of the making of the advance,

the displacing authority shall make to the lending authority a lump sum payment by way of indemnity against that loss.

(4) For the purposes of subsection (3) above, a lending authority incur a net loss in respect of the making of an advance to any person if—

(a) he does not fully discharge his liability to the authority in respect of principal, interest and costs or expenses in accordance with the terms on which the advance is made; and

(b) the deficiency exceeds the net proceeds arising to the authority on a sale of the interest on which the principal and interest is secured.

(5) The Secretary of State may—

(a) for the purposes of subsection (1) above from time to time determine a method to be used generally in calculating net losses incurred by rehousing authorities;

(b) for the purposes of that subsection or subsection (3) above, determine the net loss incurred by a rehousing authority or lending authority in any particular case;

(6) In subsection (2)—

’Housing Revenue Account dwelling’ means a dwelling which is within the authority’s Housing Revenue Account (within the meaning of Part VI of the Local Government and Housing Act 1989)

Power of relevant authority to defray expenses in connection with acquisition of new dwellings.

43

(1) Where a person displaced from a dwelling in consequence of any of the events specified in paragraphs (a) to (d) of section 39(1)above—

(a) has no interest in the dwelling or no greater interest therein than as tenant for a year or from year to year; and

(b) wishes to acquire another dwelling in substitution for that from which he is displaced,

then, according to the nature of the event in consequence of which he was displaced, the acquiring authority, the authority who made the order, passed the resolution, accepted the undertaking or served the notice or the authority carrying out the improvement or redevelopment may pay any reasonable expenses incurred by him in connection with the acquisition, other than the purchase price.

(2) No payment shall be made under this section in respect of expenses incurred by any person in connection with the acquisition of a dwelling unless the dwelling is acquired not later than one year after the displacement and is reasonably comparable with that from which he is displaced.

(3) For the purposes of subsection (2) above a dwelling acquired pursuant to a contract shall be treated as acquired when the contract is made.

(4) Subsections (3) (6) and (6A) of section 39 above shall have effect in relation to subsection (1) above and to any provision of subsection (1) of that section as applied thereby.

Part IV — Compulsory Purchase

Assessment of compensation

Compensation for injurious affection.

44

(1) Where land is acquired or taken from any person for the purpose of works which are to be situated partly on that land and partly elsewhere, compensation for injurious affection of land retained by that person shall be assessed by reference to the whole of the works and not only the part situated on the land acquired or taken from him.

(2) In this section “compensation for injurious affection” means compensation for injurious affection under section 63 or 121 of the Lands Clauses Consolidation Act 1845 or section 7 or 20 of the Compulsory Purchase Act 1965, and subsection (1) above shall apply with the necessary modifications to such compensation under the said section 7 as substituted by paragraph 6 of Schedule 19 to the Highways Act 1980, paragraph 7 of Schedule 3 to the Gas Act 1986 paragraph 3 of Schedule 9 to the Water Industry Act 1991 or of Schedule 18 to the Water Resources Act 1991 (compulsory acquisition of rights over land) or any corresponding enactment, including (except where otherwise provided) an enactment passed after this Act.

(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Compensation for acquisition of dwelling specially adapted for disabled person.

45

(1) This section applies to the assessment of compensation in respect of the compulsory acquisition of an interest in a dwelling which—

(a) has been constructed or substantially modified to meet the special needs of a disabled person; and

(b) is occupied by such a person as his residence immediately before the date when the acquiring authority take possession of the dwelling or was last so occupied before that date.

(2) The compensation shall, if the person whose interest is acquired so elects, be assessed as if the dwelling were land which is devoted to a purpose of such a nature that there is no general demand or market for land for that purpose.

Compensation for disturbance where business carried on by person over sixty.

46

(1) Where a person is carrying on a trade or business on any land and, in consequence of the compulsory acquisition of the whole of that land, is required to give up possession thereof to the acquiring authority, then if—

(a) on the date on which he gives up possession as aforesaid he has attained the age of sixty; and

(b) on that date the land is or forms part of a hereditament the annual value of which does not exceed the prescribed amount; and

(c) that person has not disposed of the goodwill of the whole of the trade or business and gives to the acquiring authority the undertakings mentioned in subsection (3) below,

the compensation payable to that person in respect of the compulsory acquisition of his interest in the land or, as the case may be, under section 121 of the Lands Clauses Consolidation Act 1845 or section 20 of the Compulsory Purchase Act 1965 (tenants from year to year etc.) shall, so far as attributable to disturbance, be assessed on the assumption that it is not reasonably practicable for that person to carry on the trade or business or, as the case may be, the part thereof the goodwill of which he has retained, elsewhere than on that land.

(2) In subsection (1) above “the prescribed amount” means the amount which on the date mentioned in that subsection is the amount prescribed for the purposes of section 149(3)(a) of the Town and Country Planning Act 1990 (interests qualifying for protection under planning blight provisions) and “annual value” and “hereditament” have the meanings given in section 171 of that Act taking references to the date of service of a notice under section 150 of that Act as references to the date mentioned in subsection (1) above.

(3) The undertakings to be given by the person claiming compensation are—

(a) an undertaking that he will not dispose of the goodwill of the trade or business, or, as the case may be, of the part thereof the goodwill of which he has retained; and

(b) an undertaking that he will not, within such area and for such time as the acquiring authority may require, directly or indirectly engage in or have any interest in any other trade or business of the same or substantially the same kind as that carried on by him on the land acquired.

(4) If an undertaking given by a person for the purposes of this section is broken the acquiring authority may recover from him an amount equal to the difference between the compensation paid and the compensation that would have been payable if it had been assessed without regard to the provisions of this section.

(5) This section shall apply to a trade or business carried on by two or more persons in partnership as if references to the person by whom it is carried on were references to all the partners and as if the undertakings mentioned in subsection (3) above were required to be given by all the partners.

(6) This section shall apply to a trade or business carried on by a company—

(a) as if subsection (1)(a) above required—

(i) each shareholder, other than a minority shareholder, to be an individual who has attained the age of sixty on the date there mentioned; and

(ii) each minority shareholder to be an individual who either has attained that age on that date or is the spouse of a shareholder who has attained that age on that date; and

(b) as if the undertakings mentioned in subsection (3)(b) above were required to be given both by the company and by each shareholder.

In this subsection “shareholder” means a person who is beneficially entitled to a share or shares in the company carrying voting rights and “minority shareholder” means a person who is so entitled to less than 50 per cent, of those shares.

(7) This section shall apply in relation to any disturbance payment assessed in accordance with section 38(1)(b) above as it applies in relation to the compensation mentioned in subsection (1) above, and shall so apply subject to the necessary modifications and as if references to the giving up of possession of land to the acquiring authority in consequence of its compulsory acquisition were references to displacement as mentioned in section 37 above.

(8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Compensation in respect of land subject to business tenancy

47

(1) This section applies where—

(a) in pursuance of an enactment providing for the acquisition or taking of possession of land compulsorily an acquiring authority—

(i) acquires the interest of the landlord in land subject to a tenancy, or

(ii) acquires the interest of the tenant in, or takes possession of, land subject to a tenancy, and

(b) before the authority acquired the interest or took possession of the land, the tenant under the tenancy was carrying on a trade or business on the land.

(2) The principles in subsections (3) and (4) are to be applied in assessing the compensation payable by the authority to the landlord or the tenant in respect of the acquisition of the interest in or the taking of possession of the land or, as the case may be, under section 121 of the Lands Clauses Consolidation Act 1845 or section 20 of the Compulsory Purchase Act 1965 (tenants from year to year etc).

(3) Regard must be had to—

(a) the likelihood of the continuation or renewal of the tenancy,

(b) in the case of a tenancy to which Part 2 of the Landlord and Tenant Act 1954 (security of tenure for business tenants) applies, the right of the tenant to apply for the grant of a new tenancy,

(c) the total period for which the tenancy may reasonably have been expected to continue, including after any renewal, and

(d) the terms and conditions on which a tenancy may reasonably have been expected to be renewed or continued.

(4) It is to be assumed that neither the acquiring authority nor any other authority possessing compulsory purchase powers have acquired or propose to acquire any interest in the land.

Compensation in respect of agricultural holdings.

48

(1) Subject to subsection (1A) below this section has effect where in pursuance of any enactment providing for the acquisition or taking of possession of land compulsorily an acquiring authority—

(a) acquire the interest of the landlord in an agricultural holding or any part of it; or

(b) acquire the interest of the tenant in, or take possession of, an agricultural holding or any part of it.

(1A) This section does not have effect where the tenancy of the agricultural holding is a tenancy to which, by virtue of section 4 of the Agricultural Tenancies Act 1995, the Agricultural Holdings Act 1986 does not apply.

(2) In assessing the compensation payable by the acquiring authority to the landlord in connection with any such acquisition of an interest as is mentioned in subsection (1)(a) above—

(a) there shall be disregarded any right of the landlord to serve a notice to quit, and any notice to quit already served by the landlord, which would not be or would not have been effective if—

(i) in Case B in Part I of Schedule 3 to the Agricultural Holdings Act 1986 (land required for non-agricultural use for which planning permission has been granted etc.) the reference to the land being required did not include a reference to its being required by an acquiring authority; and

(ii) in section 27(3)(f) of that Act (proposed termination of tenancy for purpose of land’s being used for non-agricultural use not falling within the said Case B the reference to the land’s being used did not include a reference to its being used by an acquiring authority; and

(b) if the tenant has quitted the holding or any part of it by reason of a notice to quit which is to be so disregarded, it shall be assumed that he has not done so.

(3) In assessing the compensation payable by the acquiring authority to the tenant in connection with any such acquisition of an interest or taking of possession of land as is mentioned in subsection (1)(b) above (hereafter referred to as “the tenant’s compensation”), there shall be disregarded any right of the landlord to serve a notice to quit, and any notice to quit already served by the landlord, which would not be or would not have been effective if the said Case B and section 27(3)(f) were construed in accordance with subsection (2)(a)(i) and (ii) above.

(4) Section 42 of the Agriculture (Miscellaneous Provisions) Act 1968 (tenant’scompensation to be assessed without regard to his prospects of remaining in possession after contractual date) and section 15(1) of that Act (effect on tenant’s compensation of provision enabling landlord to resume possession for non-agricultural use) shall cease to have effect.

(5) The tenant’s compensation shall be reduced by an amount equal to any payment which the acquiring authority are liable to make to him, in respect of the acquisition or taking of possession in question, under section 12 of the said Act of 1968 (additional payments by acquiring authority in circumstances described in subsection (1)(b) above).

(6) If the tenant’s compensation as determined in accordance with subsections (3) to (5) above is less than it would have been if those subsections had not been enacted, it shall be increased by the amount of the deficiency.

(6A) In assessing the tenant’s compensation no account shall be taken of any benefit which might accrue to the tenant by virtue of section 60(2)(b) of the Agricultural Holdings Act 1986 (additional payments by landlord for distrubance); and in this subsection the reference to the said section 60(2)(b) does not include a reference to it as applied by section 12 of the Agricultural (Miscellaneous Provisions) Act 1968.

(7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

49

Compensation where occupier is rehoused.

50

(1) The amount of compensation payable in respect of the compulsory acquisition of an interest in land shall not be subject to any reduction on account of the fact that the acquiring authority have provided, or undertake to provide or arrange for the provision of, or another authority will provide, residential accommodation under any enactment for the person entitled to the compensation.

(2) In assessing the compensation payable in respect of the compulsory acquisition of an interest in land which on the date of service of the notice to treat is subject to a tenancy, there shall be left out of account any part of the value of that interest which is attributable to, or to the prospect of, the tenant giving up possession after that date in consequence of being provided with other accommodation by virtue of section 39(1)(a) above; and for the purpose of determining the date by reference to which that compensation is to be assessed the acquiring authority shall be deemed, where the tenant gives up possession as aforesaid, to have taken possession on the date on which it is given up by the tenant.

(3) Subsection (1) above shall apply in relation to any payment to which a person is entitled under Part III of this Act as it applies in relation to the compensation mentioned in that subsection taking references to the acquiring authority as references to the authority responsible for making that payment.

(4) Subsection (2) above shall apply in relation to a case where a notice to treat is deemed to have been served by virtue of Part III of the Compulsory Purchase (Vesting Declarations) Act 1981 (general vesting declarations) as it applies in relation to a case where a notice to treat is actually served.

Compensation where land is in area designated as site of new town for purpose of public development.

51

(1) Where the Secretary of State proposes to make an order under section 1 of the New Towns Act 1981 designating any area as—

(a) the site of a new town; or

(b) an extension of the site of a new town,

and the purpose or main purpose, or one of the main purposes, for which the order is proposed to be made is the provision of housing or other facilities required in connection with or in consequence of the carrying out of any public development, he may, before making the order, give a direction specifying that development for the purposes of this section in relation to that area.

(2) Where the area mentioned in paragraph 3 or 3A in the first column of Schedule 1 to the Land Compensation Act 1961 (cases where land acquired forms part of site of new town or extension of site of new town) is an area to which a direction under this section relates, then, in the circumstances described in that paragraph—

(a) the increase or diminution in value to be left out of account by virtue of section 6 of that Act (compensation to be assessed without regard to development attributable to designation of new town) or any rule of law relating to the assessment of compensation in respect of compulsory acquisition; and

(b) the increase in value to be taken into account by virtue of section 7 of that Act (reduction of compensation where other land benefited by such development),

shall respectively include any increase or diminution in value, and any increase in value, which is attributable to the carrying out or the prospect of the public development specified in the direction.

(3) No direction shall be given under this section in relation to any area until the Secretary of State has prepared a draft of the order under section 1 of the said Act of 1981in respect of that area and has published the notice required by paragraph 2 of Schedule 1 to that Act.

(4) Any direction under this section shall be given by order; and any order containing such a direction may be varied or revoked by a subsequent order.

(5) The power to make orders under this section shall be exercisable by statutory instrument subject to annulment in pursuance of a resolution of either House of Parliament.

(6) In this section “public development” means development (whether or not in the area designated under section 1 of the said Act of 1981) in the exercise of statutory powers by—

(a) a government department;

(b) any statutory undertakers within the meaning of the Town and Country Planning Act 1990or any body deemed by virtue of any enactment to be statutory undertakers for the purposes of, or of any provision of, that Act; or

and includes such development which has already been carried out when the direction in respect of it is given as well as such development which is then proposed.

(7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Advance payment of compensation

Right to advance payment of compensation.

52

(1) An acquiring authority may make an advance payment on account of compensation payable by them for the compulsory acquisition of an interest in land if a request has been made under subsection (2) after the compulsory acquisition has been authorised.

(1A) In a case where the compulsory acquisition is one to which the Lands Clauses Consolidation Act 1845 applies, the acquiring authority may not make an advance payment if they have not taken possession of the land, but must do so if they have.

(1B) In all other cases, an acquiring authority must make an advance payment under subsection (1) if, before or after the request is made, the authority—

(a) give a notice of entry under section 11(1) of the Compulsory Purchase Act 1965, or

(b) execute a general vesting declaration under section 4 of the Compulsory Purchase (Vesting Declarations) Act 1981 in respect of that land.

(2) A request for advance payment must be made in writing by the person entitled to it (“the claimant”) and must include—

(a) details of the claimant's interest in the land, and

(b) information to enable the acquiring authority to estimate the amount of the compensation in respect of which the advance payment is to be made.

(2A) Within 28 days of receiving a request, the acquiring authority must—

(a) determine whether they have enough information to estimate the amount of compensation, and

(b) if they need more information, require the claimant to provide it.

(3) Subject to subsection (6) below, the amount of any advance payment under this section shall be equal to 90 per cent. of the following amount, that is to say—

(a) if the acquiring authority and the claimant have agreed on the amount of the compensation, the agreed amount;

(b) in any other case, an amount equal to the compensation as estimated by the acquiring authority.

(4) An advance payment required by subsection (1A) must be made—

(a) before the end of the day on which the authority take possession of the land, or

(b) if later, before the end of the period of two months beginning with the day on which the authority—

(i) received the request for the advance payment, ...

(ii) received any further information required under subsection (2A)(b), or

(iii) received any further information required under section 52ZC(2)(b).

(4ZA) An advance payment required by subsection (1B) must be made—

(a) before the end of the day on which the notice of entry is given or the general vesting declaration is executed, or

(b) if later, before the end of the period of two months beginning with the day on which the authority—

(i) received the request for the advance payment, ...

(ii) received any further information required under subsection (2A)(b), or

(iii) received any further information required under section 52ZC(2)(b).

(4A) Where, at any time after an advance payment has been made on the basis of the acquiring authority’s estimate of the compensation, it appears to the acquiring authority that their estimate was too low, they shall, if a request in that behalf is made in accordance with subsection (2) above, pay to the claimant the balance of the amount of the advance payment calculated as at that time.

(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(6) If the land is subject to a mortgage sections 52ZA and 52ZB apply.

(7) Any advance payment on account of compensation in respect of an interest which is settled land for the purposes of the Settled Land Act 1925 shall be made to the persons entitled to give a discharge for capital money and shall be treated as capital money arising under that Act.

(8) Before an acquiring authority make an advance payment under this section on account of compensation in respect of any interest in land they shall deposit with the council of the district or London borough or Welsh county or county borough in which the land is situated particulars of the payment to be made, the compensation and the interest in land to which it relates;. . .

(8A) Any particulars deposited pursuant to subsection (8) above shall be a local land charge and for the purposes of the Local Land Charges Act 1975 the council with whom any such particulars are deposited shall be treated as the originating authority as respects the charge thereby constituted.

(9) Where a local land charge is registered in the ... local land charges register pursuant to subsection (8A) above and the advance payment to which the charge relates is made to the claimant, then if thereafter

(a) the claimant's interest in some or all of the land is acquired by another person, or

(b) the claimant creates an interest in some or all of the land in favour of a person other than the acquiring authority,

the amount of the advance payment together with any amount paid under section 52A shall be set off against any sum payable by the authority to that other person in respect of the compulsory acquisition of the interest acquired or the compulsory acquisition or release of the interest created.

(10) Where an advance payment has been made under this section on account of any compensation—

(a) section 76 of the Lands Clauses Consolidation Act 1845 and section 9 of the Compulsory Purchase Act 1965 (refusal of owner to convey on tender of compensation) shall have effect as if references to the compensation were references to the balance thereof remaining unpaid . . .

(11) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(12) This section shall apply to compensation for the compulsory acquisition of a right over land as it applies to compensation for the compulsory acquisition of an interest in land, and shall so apply with the necessary modifications and as if references to taking possession of the land were references to first entering it for the purpose of exercising the right.

(13) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Repayment by claimant etc.

52AZA

(1) Where the amount or aggregate amount of any payments under section 52 made on the basis of the acquiring authority's estimate of the compensation exceeds the compensation as finally determined or agreed, the excess is to be repaid.

(2) If after any payment under section 52 has been made to any person it is discovered that the person was not entitled to it, the person must repay it.

(3) If the notice to treat relating to an interest in land in relation to which an acquiring authority have made a payment to a claimant under section 52 is withdrawn or has ceased to have effect before the authority take possession of the land, the authority may by notice require the claimant to pay them an amount equal to the amount of the payment, unless another person has acquired the whole of the claimant's interest in the land.

(4) Subsection (5) applies where—

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