Q&As

A council is buying back land by agreement in relation to a possible compulsory purchase order. A seller is being paid the market value of their property as well as compensation in the form of disturbance payments and statutory loss. The seller does not want the amount set out in this way in the transaction documents but wants the full figure reflected in the TR1. How should this be reflected in the TR1, eg should option 1 in panel 8 be used or option 3 (other receipts). By using ‘other receipts’, would this have any effect on the stamp duty land tax payment?

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Produced in partnership with Chris Bryden of 4 King’s Bench Walk
Published on LexisPSL on 18/12/2019

The following Property Q&A produced in partnership with Chris Bryden of 4 King’s Bench Walk provides comprehensive and up to date legal information covering:

  • A council is buying back land by agreement in relation to a possible compulsory purchase order. A seller is being paid the market value of their property as well as compensation in the form of disturbance payments and statutory loss. The seller does not want the amount set out in this way in the transaction documents but wants the full figure reflected in the TR1. How should this be reflected in the TR1, eg should option 1 in panel 8 be used or option 3 (other receipts). By using ‘other receipts’, would this have any effect on the stamp duty land tax payment?

It is commonly the case that a local authority will seek to negotiate with landowners while a compulsory purchase order is being sought. The general compensatory principle is that the forced seller should be put in an equivalent position meaning that they are no worse off in financial terms after the acquisition than they were before, but also should be no better off. The heads of claim are usually the value of the land taken, any payment for depreciation if only part of the land is taken, disturbance from occupation in respect of an occupier; and fees. Compensation for disturbance might include, for example, legal fees, stamp duty and surveyors’ fees in respect of a replacement property. Compensation for d

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