(1) Subject to section 116, where planning permission [or permission in principle] is revoked or modified by an order under [section 97(1)(a)], then if, on a claim made to the local planning authority within the prescribed time and in the prescribed manner, it is shown that a person interested in the land or in minerals in, on or under it—
(a) has incurred expenditure in carrying out work which is rendered abortive by the revocation or modification; or
(b) has otherwise sustained loss or damage which is directly attributable to the revocation or modification,
the local planning authority shall pay that person compensation in respect of that expenditure, loss or damage.
(2) For the purposes of [subsection (1)], any expenditure incurred in the preparation of plans for the purposes of any work, or upon other similar matters preparatory to it, shall be taken to be included in the expenditure incurred in carrying out that work.
(3) Subject to subsection (2), no compensation shall be paid under [subsection (1)] in respect—
(a) of any work carried out before the grant of the permission which is revoked or modified, or
(b) of any other loss or damage arising out of anything done or omitted to be done before the grant of that permission (other than loss or damage consisting of depreciation of the value of an interest in land).
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