C2.1117 Part disposal of land to authority with compulsory powers
Certain disposals of part of a holding of land to an authority exercising or having compulsory powers may be subject to special treatment. For the special treatment to be available:
• the consideration for the transfer (or, if the transfer is not for full consideration, the market value of the land transferred) must be small, as compared with the market value of the holding as it existed before the transfer1, and
• the transferor must have taken no steps, by advertising or otherwise, to dispose of any part of the holding, or to make his willingness to dispose of it known to the authority or others2. (In practice, HMRC ignore any such steps taken by the transferor more than three years before the compulsory acquisition in question3).
For the purposes of determining whether the consideration received was small in relation to the value of the holding, the holding is treated as comprising only the land in respect of which the allowable expenditure would have been apportioned4 if the transfer to the authority had
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