Office of Public Sector Information
SCHEDULE 12 continued
(2) Subject to the following provisions of this paragraph, the value shall be calculated by reference to prices current at the time in question—
(a) as if the development had not been initiated, but the land had remained in the state in which it was immediately before the development was initiated; and
(b) on the assumption that (apart from the provisions of Part III of this Act, the provisions of Part III of the 1971 Act, the provisions of Part III of the 1962 Act or the provisions of the 1947 Act, as the case may be) the development could at that time lawfully be carried out,
and shall be taken to be the difference between—
(i) the value which in those circumstances the land would have had at that time if planning permission for that development had been granted unconditionally immediately before that time, and
(ii) the value which in those circumstances the land would have had at that time if planning permission for that development had been applied for and refused immediately before that time and it could be assumed that planning permission for that development, and any other new development of that land, would be refused on any subsequent application.
(3) If the development involved the clearing of any land, the reference in sub-paragraph (2)(a) to the state of the land immediately before the development shall be construed as a reference to the state of the land immediately after the clearing of it but before the carrying out of any other operations.
(4) If the development was initiated in pursuance of planning permission granted subject to conditions, sub-paragraph (2) shall apply as if the reference to the granting of permission unconditionally were a reference to the granting of permission subject to the same conditions.
(5) If the permission referred to in sub-paragraph (4) was granted subject to conditions which consisted of, or included, a requirement expressed by reference to a specified period, the reference in that sub-paragraph to the same conditions shall be construed, in relation to the condition imposing that requirement, as a reference to a condition imposing the same requirement in respect of a period of the same duration beginning at the time in question.
(6) In the application of this paragraph to development initiated, but not completed, before the time in question, references to permission for that development shall be construed as references to permission for so much of that development as had been carried out before that time.
16 (1) Where in the case of—
(a) a compulsory acquisition to which this paragraph applies; or
(b) a sale of an interest in land by agreement in circumstances corresponding to such an acquisition,
any of the land in which the interest acquired or sold subsists or subsisted has or had an unexpended balance of established development value immediately before the relevant date (in this paragraph referred to as “the relevant balance”) this paragraph shall have effect for the purpose of determining whether that land or any part of it has or had an unexpended balance of established development value at any subsequent time.
(2) This paragraph applies—
(a) to every compulsory acquisition of an interest in land in pursuance of a notice to treat served on or after 30th October 1958, whether before or after the commencement of this Act; and
(b) to every compulsory acquisition of an interest in land, in pursuance of a notice to treat served on or after lst January 1955 but before 30th October 1958, by an authority possessing compulsory purchase powers, being at that time a government department or local or public authority within the meaning of the [1919 c. 57.] Acquisition of Land (Assessment of Compensation) Act 1919, or a person or body of persons to whom that Act applied as it applied to such a department or authority.
(3) Unless, immediately after the acquisition or sale, there is or was outstanding some interest (other than an excepted interest) in the land to which some person other than the acquiring authority is or was entitled, the original unexpended balance of established development value of that land shall be treated as having been extinguished immediately before the subsequent time referred to in sub-paragraph (1).
(4) If, immediately after the acquisition or sale, there is or was such an outstanding interest (other than an excepted interest) as is mentioned in sub-paragraph (3), there shall be deducted from that original balance an amount equal to any part of the relevant balance which is or was not attributable to any such outstanding interest, and the original unexpended balance of established development value of the land or the part of it in question shall be treated as having been reduced or extinguished accordingly immediately before that subsequent time.
(5) For the purposes of this paragraph any question as to the portion of the relevant balance which is or was attributable to an interest in land—
(a) in relation to a compulsory acquisition to which this paragraph applies, shall be determined in accordance with paragraph 17; and
(b) in relation to a sale of an interest in land by agreement in circumstances corresponding to such an acquisition, shall be determined in accordance with the provisions of that paragraph as those provisions would apply if the sale had been a compulsory acquisition in pursuance of a notice to treat served on the relevant date.
(6) Any reference in this paragraph or in paragraph 18 to a sale of an interest in land by agreement in circumstances corresponding to a compulsory acquisition to which this paragraph applies is a reference to a sale of it—
(a) to an authority possessing compulsory purchase powers, in pursuance of a contract made on or after 30th October 1958, whether before or after the commencement of this Act; or
(b) to such an authority possessing compulsory purchase powers as is mentioned in sub-paragraph (2)(b), in pursuance of a contract made on or after lst January 1955 but before 30th October 1958.
(7) In this paragraph—
(a) “the relevant date” means the date of service of the notice to treat or the date of the contract in pursuance of which the interest was sold, as the case may be, and
(b) “excepted interest” means the interest of any such person as is mentioned in section 20(1) of the [1965 c. 56.] Compulsory Purchase Act 1965 (which relates to persons having no greater interest than as tenant for a year or from year to year).
17 (1) Where, in the case of a compulsory acquisition to which paragraph 16 applies, any area of the relevant land which, immediately before the relevant date, has an unexpended balance of established development value does not satisfy the following conditions, namely—
(a) that all the interests (other than excepted interests) subsisting in the area in question subsist in the whole of that area; and
(b) that any rentcharge charged on that area is charged on the whole of it,
that area shall be treated as divided into as many separate areas as may be requisite to ensure that each of those separate areas satisfies those conditions.
(2) Any area of the relevant land which has an unexpended balance of established development value and which complies with the conditions mentioned in sub-paragraph (1) is in this paragraph referred to, in relation to the interests subsisting in it, as “the relevant area”, and the following provisions of this paragraph shall have effect separately in relation to each relevant area.
(3) There shall be calculated the amount referable to the relevant area of the rent which might reasonably be expected to be reserved if the relevant land were to be let on terms prohibiting the carrying out of any new development but permitting the carrying out of any other development; and the amount so calculated is in this paragraph referred to as “the existing use rent”.
(4) If, in the case of an interest in fee simple which is subject to a rentcharge, or in the case of a tenancy, so much of the rent reserved under the rentcharge or tenancy as is referable to the relevant area exceeds the existing use rent, there shall be calculated the capital value of the right to receive, for the period of the remainder of the term of the rentcharge or tenancy, an annual payment equal to the excess; and any amount so calculated in the case of any interest is in this paragraph referred to as “the rental liability” of that interest.
(5) Where the interest in fee simple is subject to more than one rentcharge, then, for the purposes of sub-paragraph (4), in relation to any period included in the term of two or more of those rentcharges, those two or more rentcharges shall be treated as a single rentcharge charged on the relevant area for the duration of that period, with a rent reserved thereunder of an amount equal to the aggregate of so much of their respective rents as is referable to the relevant area.
(6) In the case of any interest in reversion—
(a) there shall be calculated the capital value, as at the time immediately before the relevant date, of the right to receive a sum equal to the unexpended balance of established development value of the relevant area at that time, but payable at the end of the tenancy upon the termination of which the interest in question is immediately expectant; and the amount so calculated in the case of any interest is in this paragraph referred to as “the reversionary development value” of that interest;
(b) if so much of the rent reserved under that tenancy as is referable to the relevant area exceeds the existing use rent, there shall also be calculated the capital value as at the said time of the right to receive, for the period of the remainder of the term of that tenancy, an annual payment equal to the excess;
and any amount so determined in the case of any interest is in this paragraph referred to as “the rental increment” of that interest.
(7) Where two or more interests (other than excepted interests) subsist in the relevant area, the portion of the unexpended balance of established development value of the relevant area attributable to each of those interests respectively shall be taken to be—
(a) in the case of the interest in fee simple, an amount equal to the reversionary development value of that interest, less the amount (if any) by which any rental liability of that interest exceeds any rental increment of it;
(b) in the case of a tenancy in reversion, an amount equal to the reversionary development value of that tenancy, less the aggregate of—
(i) the reversionary development value of the interest in reversion immediately expectant upon the termination of that tenancy; and
(ii) the amount (if any) by which any rental liability of that tenancy exceeds any rental increment of it;
(c) in the case of a tenancy other than a tenancy in reversion, the remainder (if any) of the said balance after the deduction of the aggregate of—
(i) the reversionary development value of the interest in reversion immediately expectant upon the termination of that tenancy; and
(ii) any rental liability of that tenancy.
(8) In relation to any compulsory acquisition to which paragraph 16 applies, where the relevant date was a date before the commencement of this Act, the previous provisions of this paragraph shall have effect with the necessary modifications.
(9) In this paragraph—
(a) “the relevant land”, in relation to a compulsory acquisition to which paragraph 16 applies, means the land in which the interest acquired subsisted or subsists;
(b) “tenancy” does not include an excepted interest;
(c) any reference to an interest or tenancy in reversion does not include an interest or tenancy in reversion immediately expectant upon the termination of an excepted interest;
(d) “the relevant date” and “excepted interest” have the same meanings as in paragraph 16; and
(e) other expressions have the same meanings as in the relevant provisions (within the meaning of paragraph 9(5)).
18 (1) Where in connection with—
(a) a compulsory acquisition to which paragraph 16 applies; or
(b) a sale of an interest in land by agreement in circumstances corresponding to such an acquisition,
compensation is or was payable, or an amount is or was included in the purchase price, in respect of an interest in land other than the relevant land (in this paragraph referred to as “the interest affected”), for damage sustained by reason that the relevant land is or was severed from other land held with it, or that any other land (whether held with the relevant land or not) is or was injuriously affected, then (subject to the following provisions of this paragraph) for the purpose of determining whether that other land or any part of it has or had an unexpended balance of established development value at any subsequent time—
(i) there shall be deducted from the original unexpended balance of established development value of that other land an amount calculated in accordance with the following provisions of this paragraph, and
(ii) the original unexpended balance of that land, or of the part of it in question, as the case may be, shall be treated as having been reduced or extinguished accordingly immediately before that subsequent time.
(2) In the case of an acquisition or sale in pursuance of a notice to treat served, or contract made, on or after 30th October 1958, the amount to be deducted, as mentioned in sub-paragraph (1), shall be the amount (if any) by which the compensation payable, or the amount included in the purchase price, as so mentioned exceeds or exceeded the compensation which would have been so payable, or the amount which would have been so included, if the extent of the damage sustained in respect of the other land in question had fallen to be ascertained on the assumption that planning permission would not be granted for any new development of that land, but would be granted for any development of it other than new development.
(3) Sub-paragraphs (4) to (6) shall have effect with respect to any such acquisition or sale as is mentioned in sub-paragraph (1), being an acquisition or sale in pursuance of a notice to treat served, or contract made, before 30th October 1958.
(4) No such deduction as is mentioned in sub-paragraph (1) shall be made in the case of such an acquisition or sale as is mentioned in sub-paragraph (3) unless—
(a) where it was a compulsory acquisition, an amount was paid by way of compensation as mentioned in sub-paragraph (1);
(b) the amount which was so paid, or, in the case of a sale by agreement, was included in the purchase price as mentioned in sub-paragraph (1), (“the sum paid for severance or injurious affection”) exceeded the loss of immediate value of the interest affected; and
(c) where it was a sale by agreement, the other land in question was held with the relevant land.
(5) Subject to sub-paragraph (4), the amount to be deducted as mentioned in sub-paragraph (1), in the case of such an acquisition or sale as is mentioned in sub-paragraph (3), shall be the amount by which the sum paid for severance or injurious affection exceeded the loss of immediate value of the interest affected.
(6) This sub-paragraph shall have effect, in the case of such an acquisition or sale as is mentioned in sub-paragraph (3), where so much (if any) of the sum paid for severance or injurious affection as was attributable to the loss of immediate value of the interest affected was less than the depreciation in restricted value of that interest, that is to say—
(a) the amount of the difference shall be ascertained; and
(b) for the purpose of determining whether, at any time after the acquisition or sale, the land in which the interest affected subsisted or any part of it had or has an unexpended balance of established development value (whether or not that land or any part of it would apart from this sub-paragraph have had an original unexpended balance of established development value) a claim holding with an area consisting of that land and a value equal to seven-eighths of the amount of the difference shall be deemed to have subsisted immediately after the time when the adjustment of claim holdings was completed.
(7) In this paragraph—
“the loss of immediate value” means the amount (if any) by which the difference in the value of the interest affected, immediately before and immediately after the acquisition or sale, exceeded the loss of development value;
“the loss of development value” means the amount (if any) by which the value of the interest affected immediately before the acquisition or sale, if calculated on the assumption that, until such time as the land in which that interest subsisted might reasonably be expected to become ripe for new development, no use whatever could be made of that land, would have exceeded the value of that interest immediately after the acquisition or sale if calculated on the like assumption;
“the depreciation in restricted value” means the amount (if any) by which the value of the interest affected, immediately after the acquisition or sale, would have been less than the value of that interest immediately before the acquisition or sale, if both values were calculated on the assumption that planning permission would not be granted for any new development of that land, but would be granted for any development of it other than new development;
“the relevant land”, in relation to an acquisition or sale, means the land in which the interest acquired or sold subsisted.
19 (1) Where, immediately after the time when the adjustment of claim holdings was completed, any land taken as a whole had an original unexpended balance of established development value, and at any later time (whether before or after the commencement of this Act) an act or event occurs or has occurred in relation to part of that land such that, in accordance with any of the provisions of section 119 and paragraphs 1 to 4, 12 to 14, 16 and 18, an amount is required to be deducted from the original unexpended balance of that part of that land for the purpose of determining whether it has or had an unexpended balance of established development value at any subsequent time, then (without prejudice to the operation of any of those provisions with respect to any part of the land taken separately) the land taken as a whole shall be treated as not having (or as not having had) any such balance at that subsequent time.
(2) Where in accordance with those provisions an amount is required to be deducted from the original unexpended balance of established development value of any land, there shall be attributed to the various parts of that land so much of that amount as might reasonably be expected to have been attributed to it if the authority determining the amount had been required to apportion it between those parts in accordance with the same principles as applied to its determination.
(3) Where two or more acts or events occur or have occurred in relation to the same land (whether before or after the commencement of this Act) such that, in accordance with those provisions, an amount is required to be deducted from the original unexpended balance of established development value of that land or any part of it, those provisions shall apply cumulatively, and the requisite deduction from the original unexpended balance of established development value of that land shall be made by reference to each of those acts or events.
20 (1) Subject to this paragraph, the Secretary of State shall, on application being made to him by any person, and may if he thinks fit without any such application, issue a certificate in the prescribed form with respect to any land stating whether any of that land had an original unexpended balance of established development value, and, if so—
(a) giving a general statement of what was taken by the Central Land Board, for the purposes of Part Vl of the 1947 Act, to be the state of that land on 1st July 1948; and
(b) specifying (subject to any outstanding claims under Part I or Part V of the 1954 Act) the amount of that original balance.
(2) Any such certificate issued with respect to any land may, if the Secretary of State thinks fit, contain additional information with respect to acts or events in consequence of which, in accordance with any of the provisions of section 119 and paragraphs 1 to 4, 12 to 14, 16 and 18, an amount is required to be deducted from the original unexpended balance of established development value of any of that land.
(3) Where, at any time on or after lst January 1955 (whether before or after the commencement of this Act), a notice to treat has been served with a view to the compulsory acquisition of an interest in land by an authority possessing compulsory purchase powers, that authority may apply to the Secretary of State for, and shall be entitled to the issue of, a certificate showing the unexpended balance of established development value (if any) of any of that land immediately before the service of that notice.
(4) Where the issue of a certificate under this paragraph with respect to any land involves a new apportionment, or, in the case of a certificate under sub-paragraph (3), involves the calculation of a deduction from the original unexpended balance of established development value by virtue of paragraph 14, then—
(a) except in the case of a certificate under sub-paragraph (3), or of a certificate which the Secretary of State proposes to issue without any application being made for it, the certificate shall not be issued otherwise than on the application of a person who is for the time being entitled to an interest in that land;
(b) before issuing the certificate, the Secretary of State shall give notice in writing to any person entitled to an interest in land appearing to him to be an interest which will be substantially affected by the apportionment or calculation, giving particulars of the proposed apportionment or calculation, and stating that objections or other representations with respect to it may be made to the Secretary of State within the period of 30 days from the date of the notice; and
(c) the certificate shall not be issued before the end of that period, and if within that period an objection to the proposed apportionment or calculation has been made by any person to whom notice has been given under paragraph (b), or by any other person who establishes that he is entitled to an interest in land which is substantially affected by the apportionment or calculation, and that objection has not been withdrawn, sub-paragraph (5) shall have effect.
(5) Where by virtue of sub-paragraph (4)(c) this sub-paragraph is to have effect, then—
(a) if within a further period of 30 days the person by whom any such objection was made requires the dispute to be referred to the Lands Tribunal, the dispute shall be so referred, and the certificate shall not be issued until either the Tribunal has decided the matter or the reference to the Tribunal has been withdrawn;
(b) the certificate may be issued before the end of the said further period if every such objection has been withdrawn;
(c) the certificate shall be issued at the end of that further period, notwithstanding that every such objection has not been withdrawn, if no requirement has within that period been made under paragraph (a).
(6) Where, on a reference to the Lands Tribunal under this paragraph, it is shown that a new apportionment relates 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 new appointment in such a way as to be inconsistent with the previous apportionment in so far as it relates to those matters.
(7) A certificate under sub-paragraph (3) shall be conclusive evidence of the unexpended balance shown in it; and a certificate under sub-paragraph (1) shall be sufficient proof of any facts stated in it unless the contrary is shown.
(8) An application for a certificate under this paragraph shall be made in such form and manner as may be prescribed, and shall be accompanied by sufficient particulars (including a map if necessary) to enable the land to be identified, and, where a new apportionment will be involved, particulars of the nature of the applicant’s interest, and such information as to the nature of any other interest in the land, and as to the name and address of the person entitled to that other interest, as may be known to the applicant.
(9) On any application under sub-paragraph (1) the applicant shall pay in the prescribed manner a fee of 25 pence, and, if the application involves a new apportionment, the certificate shall not be issued until the applicant has paid in the prescribed manner a further fee of 75 pence.
(10) In this paragraph “new apportionment” means an apportionment which relates wholly or partly to any matter to which no previous apportionment related.
Town and Country Planning Act 1990