Law

Land Compensation (Scotland) Act 1963

United Kingdom · statute

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In force since 2023-02-12, as the publisher states.

Copy read on 2026-11-08. The page it was read from

Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.

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Contents: 51 provisions
  1. Title and introductory text
  2. 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  3. 8 Tribunal for assessing compensation in respect of land compulsorily acquired.
  4. 9 Procedure on references under s. 8.
  5. 10 Consolidation of proceedings on claims in respect of several interests in the same land.
  6. 11 Expenses.
  7. 12 Rules for assessing compensation.
  8. 13 Disregard of actual or prospective development in certain cases.
  9. 14 Effect of certain actual or prospective development of adjacent land in same ownership.
  10. 15 Subsequent acquisition of adjacent land and acquisition governed by enactment corresponding to s. 14.
  11. 16 Disregard of depreciation due to prospect of acquisition by authority possessing compulsory purchase powers.
  12. 17 Acquisition of houses unfit for human habitation.
  13. 17A Expenses of owners not in occupation.
  14. 18 Land of statutory undertakers.
  15. 19 Outstanding right to compensation for refusal, etc. of planning permission.
  16. 20 Consideration in respect of discharge of feu-duty, etc.
  17. 21 War-damaged land.
  18. 22 Assumptions as to planning permission.
  19. 23 Assumptions not directly derived from development plans.
  20. 24 Special assumptions in respect of certain land comprised in development plans.
  21. 25 Certification of appropriate alternative development.
  22. 26 Appeals against certificates under s. 25.
  23. 27 Extension of ss. 25 and 26 to special cases.
  24. 28 Power to prescribe matters relevant to Part IV.
  25. 29 Proceedings for challenging validity of decision on appeal under s. 26.
  26. 30 Interpretation of Part IV.
  27. 31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
  28. 31 Compensation where planning decision made after acquisition.
  29. 32 Provisions as to claims under section 31.
  30. 33 Extension to planning permission where no planning decision made.
  31. 34 Extension to Crown development.
  32. 35 Application of Part V to certain cases.
  33. 36 Regulations for purposes of Part V.
  34. 37 Interpretation of Part IV.
  35. 38 Power to pay allowances to persons displaced.
  36. 39 Withdrawal of notices to treat.
  37. 40 Rate of interest after entry on land.
  38. 41 Application of Act to Crown.
  39. 42 Certificates of value.
  40. 43 Saving for certain statutory purchases of statutory undertakings.
  41. 44 Provisions as to inquiries and service of notices.
  42. 45 Interpretation.
  43. 46 Amendment of s. 1 (6) of the Lands Tribunal Act 1949.
  44. 47 Consequential amendments, repeals, and transitional provisions.
  45. 48 Saving for transactions before commencement of Act.
  46. 49 Short title, commencement and extent.
  47. SCHEDULE 1 Part I
  48. SCHEDULE 2 ACQUISITION OF HOUSES WHICH DO NOT MEET THE TOLERABLE STANDARD
  49. SCHEDULES 3
  50. Third Schedule Application of Part V to Certain Cases
  51. SCHEDULES 4

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51 provisions

44 Provisions as to inquiries and service of notices.

Section 265 of the Town and Country Planning (Scotland) Act 1997 (which authorises the Secretary of State to hold local inquiries for the purposes of that Act) and section 271 of that Act (which relates to the service of notices) shall apply for the purposes of this Act.

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45 Interpretation.

(1) In this Act, except where the context otherwise requires,— “acquiring authority”, in relation to an interest in land, means the person or body of persons by whom the interest is, or is proposed to be, acquired; “authority possessing compulsory purchase powers”, where it occurs otherwise than in relation to a transaction, means any person or body of persons who could be or have been authorised to acquire an interest in land compulsorily, and, in relation to any transaction, means any person or body of persons who could be or have been so authorised for the purposes for which the transaction is or was effected: Provided that in relation to any such transaction to which an executive council or a joint committee constituted by virtue of section 32 of the National Health Service (Scotland) Act 1947 are a party in the exercise of their statutory functions, the said expression shall be construed as including that council or joint committee; “building” includes any structure or erection and any part of a building as so defined, but does not include plant or machinery comprised in a building; “the current development plan”, in relation to any land, means a development plan comprising that land, in the form in which (whether as originally approved or made or as for the time being amended) that plan is in force on the date of service of the notice to treat; “development” has the meaning assigned to it by section 26 of the Town and Country Planning (Scotland) Act 1997, and “develop” shall be construed accordingly; “development order” means an order under section 30 of the Town and Country Planning (Scotland) Act 1997; “development plan” shall be construed in accordance with section 24 of the Town and Country Planning (Scotland) Act 1997; “enactment” includes an enactment in any local or private Act of Parliament and an order, rule, regulation, byelaw or scheme made under an Act of Parliament, including an order or scheme confirmed by Parliament; “land” includes land covered with water and any building as defined by this section, and includes any interest or right in or over land; “local enactment” means a local or private Act, or an order confirmed by Parliament or brought into operation in accordance with special parliamentary procedure; “local planning authority” has the meaning assigned to it by Town and Country Planning (Scotland) Act 1997; “outline application” means an application for planning permission subject to subsequent approval on any matters; “owner”, in relation to any land, includes any person who under the Lands Clauses Acts would be enabled to sell and convey the land to the promoters of an undertaking; “planning decision” means a decision made on an application under Part III of the Town and Country Planning (Scotland) Act 1997; “planning permission” means permission under Part III of the Town and Country Planning (Scotland) Act 1997; “special enactment” means a local enactment, or a provision contained in an Act other than a local or private Act, being a local enactment or provision authorising the compulsory acquisition of land specifically identified therein. (1A) Any reference in this Act to an “interest” in land shall be construed as a reference to a right in land and as including a reference to ownership of land. (2) In this Act, in relation to a compulsory acquisition in pursuance of a notice to treat, “the relevant interest” means the interest acquired in pursuance of that notice, “the relevant land” means the land in which the relevant interest subsists, and “the notice to treat” means the notice to treat in pursuance of which the relevant interest is acquired. (3) As respects references in this Act to planning decisions— (a) in relation to a decision altered on appeal by the reversal or variation of the whole or any part thereof, such references shall be construed as references to the decision as so altered; (b) in relation to a decision upheld on appeal, such references shall be construed as references to the decision of the local planning authority and not to the decision of the Secretary of State on the appeal; (c) in relation to a decision given on an appeal made by virtue of section 47(2) of the Town and Country Planning (Scotland) Act 1997 in default of a decision by the local planning authority, such references shall be construed as references to the decision so given; (d) the time of a planning decision, in a case where there is or was an appeal, shall be taken to be or have been the time of the decision as made by the local planning authority, whether or not that decision is or was altered as aforesaid on that appeal, or, in the case of such a decision as is mentioned in paragraph (c) of this subsection, the time when by virtue of section 47(4) and (5) of the Town and Country Planning (Scotland) Act 1997 the notification of a decision by the local planning authority is deemed to have been given. (4) References in this Act to the local planning authority in relation to any land are references to the local planning authority for the district in which the land is situated. (5) For the purposes of this Act, a person entitled to two interests in land shall be taken to be entitled to them in the same capacity if, but only if, he is entitled— (a) to both of them beneficially, or (b) to both of them as trustee of one particular trust, or (c) to both of them as personal representative of one particular person; and in this subsection “trustee” has the same meaning as in the Trusts (Scotland) Act 1921. (6) For the purposes of this Act development of land shall be taken to be initiated— (a) if the development consists of the carrying out of operations, at the time when those operations are begun; (b) if the development consists of a change in use, at the time when the new use is instituted; (c) if the development consists both of the carrying out of operations and of a change in use, at the earlier of the times mentioned in the preceding paragraphs. (7) References in this Act to a notice to treat include references to a notice to treat which, under any enactment, is deemed to have been served, and references to the service of such a notice and to the date of service shall be construed accordingly. (8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (10) References in this Act to any enactment shall be construed as references to that enactment as amended by or under any other enactment.

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46 Amendment of s. 1 (6) of the Lands Tribunal Act 1949.

In section 1(6) of the Lands Tribunal Act 1949, for the words “an authority to whom the Acquisition of Land Act applies” there shall be substituted the words “ any person ”.

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47 Consequential amendments, repeals, and transitional provisions.

(1) Any enactment or document referring to an enactment repealed by this Act shall be construed as referring to the corresponding enactment in this Act. (2) Without prejudice to the generality of subsection (1) of this section, any enactment excluding the power conferred by section 5 (2) of the Acquisition of Land (Assessment of Compensation) Act 1919 to withdraw notices to treat shall be construed as excluding any such power conferred by section 39 of this Act. (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4) The mention of particular matters in this section shall not be taken to affect the general application to this Act of sections 16 (1) and 17 (2) (a) of the Interpretation Act 1978 (which relates to the effect of repeals). (5) Any regulations made under section 54 (2) of the Town and Country Planning (Scotland) Act 1947 or made under section 52 of the Town and Country Planning (Scotland) Act 1959 for the purposes of section 20 or section 21 of that Act shall have effect respectively as if made under section 40 or section 36 of this Act.

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48 Saving for transactions before commencement of Act.

This Act (including the amendments and repeals made by it) shall not have effect in relation to any compulsory acquisition in pursuance of a notice to treat served before the commencement of this Act . . . ; nor in relation to any sale of an interest in land by agreement in pursuance of a contract made before the commencement of this Act.

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49 Short title, commencement and extent.

(1) This Act may be cited as the Land Compensation (Scotland) Act 1963. (2) This Act (except Part II thereof) shall come into operation on 1st January, 1964; and Part II of this Act shall come into operation on the day appointed by Her Majesty by Order in Council under section 10 (2) of the Lands Tribunal Act 1949 for the coming into force in Scotland of sections 1 to 4 of that Act. Any reference in this Act to the commencement of this Act shall be construed as a reference to the date on which this Act (except Part II thereof) comes into operation. (3) As from the coming into operation of Part II of this Act,— (a) Part I of this Act shall cease to have effect without prejudice however to the operation of the said Part I in cases where a decision has been given before the coming into operation of the said Part II, so far as relates to appeals, cases stated, expenses or fees; and (b) for any reference in this Act to an official arbiter there shall be substituted a reference to the Lands Tribunal for Scotland or, as the case may require, a member of that Tribunal. (4) This Act shall extend to Scotland only.

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SCHEDULE 1 Part I

Sections 13 and 14. Actual or Prospective Development relevant for purposes of Sections 13 & 14 Description of Development Case | Development 1. Where the acquisition is for purposes involving development of any of the land authorised to be acquired. | Development of any of the land authorised to be acquired, other than the relevant land, being development for any of the purposes for which any part of the first-mentioned land (including any part of the relevant land) is to be acquired. 2. Where any of the relevant land forms part of an area defined in the current development plan as an area of comprehensive development. | Development of any land in that area, other than the relevant land, in the course of the development or redevelopment of the area in accordance with the plan. 3. Where on the date of service of the notice to treat any of the relevant land forms part of an area designated as the site of a new town by an order under the New Towns (Scotland) Act 1968. | Development of any land in that area, other than the relevant land, in the course of the development of that area as a new town. [3A. Where on the date of service of the notice to treat any of the relevant land forms part of an area designated as an extension of the site of a new town by an order under the New Towns Act 1946 becoming operative after the date of the commencement of the New Towns Act 1966. | Development of any land included in that area, other than the relevant land, in the course of the development of that area as part of a new town.] 4. Where any of the relevant land forms part of an area to which a town development scheme under Part II of the Housing and Town Development (Scotland) Act 1957 relates, being a scheme which is in operation on the date of service of the notice to treat. | Development of any land in that area, other than the relevant land, in the course of the execution of the scheme. [4A. Where any of the relevant land forms part of an area designated as an urban development area by an order under section 134 of the Local Government, Planning and Land Act 1980. | Development of any land other than the relevant land, in the course of the development or redevelopment of that area as an urban development area.] Part II Special Provision as to New Towns 5 (1) This paragraph applies where, before the date of service of the notice to treat for the purposes of a compulsory acquisition (the relevant acquisition), the land has been disposed of by an authority or body in circumstances where paragraph 3 or 3A of this Schedule would have applied if (at the time of the disposal) the authority or body had been compulsorily acquiring the land. (2) in that case, paragraphs 3 and 3A shall not apply for the purposes of the relevant acquisition. Part III Special Provisions as to Urban Development Areas 6 For the avoidance of doubt it is hereby declared— (a) that, in assessing in the circumstances described in paragraph 4A in the first column of Part I of this Schedule the increase or diminution in value to be left out of account by virtue of section 13 of this Act no increase or diminution of value is to be excluded from being left out of account; and (b) that, in assessing in those circumstances the increase in value to be taken into account by virtue of section 14 of this Act, no increase in value is to be excluded from being taken into account, merely because it is attributable— (i) to any development of land which was carried out before the area was designated as an urban development area; (ii) to any development or prospect of development of land outside the urban development area; (iii) to any development or prospect of development of land by an authority, other than the acquiring authority, possessing compulsory purchase powers. 7 Paragraph 6 of this Schedule shall have effect in relation to any increase or diminution in value to be left out of account by virtue of any rule of law relating to the assessment of compensation in respect of compulsory acquisition as it has effect in relation to any increase or diminution in value to be left out of account by virtue of section 13 of this Act.

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SCHEDULE 2 ACQUISITION OF HOUSES WHICH DO NOT MEET THE TOLERABLE STANDARD

Acquisitions to which this Schedule applies 1 (1) This Schedule applies to a compulsory acquisition of a description mentioned in sub-paragraph (2) where the land in question comprises a house which, in the opinion of the appropriate local authority does not meet the tolerable standard. (2) The compulsory acquisitions referred to are— (a) an acquisition under Part VIII of the Town and Country Planning (Scotland) Act 1997 or sections 42 to 47 of the Planning (Listed Buildings and Conservation Areas) (Scotland) Act 1997, or (b) an acquisition under section 13 of the Housing and Town Development (Scotland) Act 1957, or (c) an acquisition in pursuance of Part V of the Town and Country Planning (Scotland) Act 1997 or sections 28 to 33 of the Planning (Listed Buildings and Conservation Areas) (Scotland) Act 1997, or (d) an acquisition of land within the area designated by an order under section 1 of the New Towns (Scotland) Act 1968 as the site of a new town, or (e) an acquisition by a development corporation or a local roads authority or the Secretary of State under the New Towns (Scotland) Act 1968 or under any enactment as applied by any provision of that Act, or (f) an acquisition by means of an order under section 141 of the Local Government, Planning and Land Act 1980 vesting land in an urban development corporation; or (g) an acquisition by such a corporation under section 142 of that Act. Procedure 2 (1) The local authority may make and submit to the Secretary of State an order, in such form as may be prescribed by regulations made under section 330 of the Housing (Scotland) Act 1987, declaring that the house does not meet the tolerable standard and if— (a) that order is confirmed by the Secretary of State, either before or concurrently with the confirmation of a compulsory purchase order for the acquisition of the land, or (b) in a case where the acquisition is in pursuance of a notice to treat deemed to have been served in consequence of the service of a notice under section 90 of the Town and Country Planning (Scotland) Act 1997 or the provisions of that section as applied by or under any other enactment or in consequence of the service of a notice under section 11 of the New Towns (Scotland) Act 1968 or under section 101 of the Town and Country Planning (Scotland) Act 1997, the order is made before the date on which the notice to treat is deemed to have been served and is subsequently confirmed by the Secretary of State, section 305 and paragraph 12(2) and (3) of Schedule 8 to the Housing (Scotland) Act 1987 (which relate respectively to payments in respect of certain well-maintained houses under Part XV and to compensation for compulsory acquisition under Part IV of the Housing (Scotland) Act 1987) shall apply as if the house had been purchased under Part IV as not meeting the tolerable standard, and as if any reference in that section and paragraph to the local authority were a reference to the acquiring authority. (2) Before submitting to the Secretary of State an order under this paragraph, the local authority by whom the order was made shall serve on every owner, and (so far as it is reasonably practicable to ascertain such persons) on ... the holder of every heritable security over, the land or any part thereof, a notice in such form as may be prescribed as mentioned in the last preceding sub-paragraph, stating the effect of the order and that it is about to be submitted to the Secretary of State for confirmation, and specifying the time within which, and the manner in which, objection thereto can be made. (3) If no objection is duly made by any of the persons on whom notices are required to be served, or if all objections so made are withdrawn, the Secretary of State may, if he thinks fit, confirm the order; but in any other case he shall, before confirming the order, consider any objection not withdrawn, and shall, if either the person by whom the objection was made or the local authority so desires, afford to that person and the authority an opportunity of appearing before and being heard by a person appointed by the Secretary of State for the purpose. (4) Section 86 of the Housing (Scotland) Act 1987 shall have effect in determining for the purposes of this paragraph whether a house meets the tolerable standard as it has effect in so determining for the purposes of that Act. (5) In this paragraph “appropriate local authority” means a local authority who, in relation to the area in which the land in question is situated, are a local authority for the purposes of the provisions of Part IV of the Housing (Scotland) Act 1987 relating to housing action areas; and “owner,” in relation to any land, includes any person who under the Lands Clauses Acts would be enabled to sell and convey the land to the promoters of an undertaking and includes also a lessee under a lease the unexpired period of which exceeds three years. Amount of compensation 3 (1) Where in relation to a compulsory acquisition, section 120(2) to (4) or paragraph 12(2) and (3) of Schedule 8 to the Housing (Scotland) Act 1987 (which relate respectively to the compensation to be paid on the compulsory acquisition of closed houses, and of houses not meeting the tolerable standard) apply (whether by virtue of that Act or of an order under paragraph 2 of this Schedule) and- (a) the relevant land consists of or includes the whole or part of a house (in this paragraph referred to as ’’the relevant house’’) and, on the date of the making of the compulsory purchase order in pursuance of which the acquisition is effected, the person then entitled to the relevant interest was, in right of that interest, in occupation of the relevant house or part thereof as a private dwelling, and (b) that person either continues, on the date of service of the notice to treat, to be entitled to the relevant interest, or, if he has died before that date, continued to be entitled to that interest immediately before his death, the following provisions of this paragraph shall apply in relation to the acquisition; and in those provisions ’’the dwelling’’ means so much of the relevant house as the said person occupied as aforesaid. (2) Subject to the next following sub-paragraph, the amount of the compensation payable in respect of the acquisition of the relevant interest shall not in any event be less than the gross annual value of the dwelling. (3) Where a payment falls to be made under section 304 or 305 of the Housing (Scotland) Act 1987 to the person entitled to the relevant interest, and that payment is attributable to the relevant house, any reference in the last preceding sub-paragraph to the amount of the compensation payable in respect of the acquisition of the relevant interest shall be construed as a reference to the aggregate of that amount and of the amount of the payment. (4) For the purposes of this paragraph the gross annual value of the dwelling shall be determined as follows- (a) if the dwelling constitutes the whole of the relevant house, the gross annual value of the dwelling shall be taken to be the value which, on the date of service of the notice to treat, is shown in the valuation roll then in force as the gross annual value of that house for rating purposes; (b) if the dwelling is only part of the relevant house, an apportionment shall be made of the gross annual value of the relevant house for rating purposes, as shown in the valuation roll in force on the date of service of the notice to treat, and the gross annual value of the dwelling shall be taken to be the amount which, on such an apportionment, is properly attributable to the dwelling. (5) Any reference in this paragraph to the compensation payable in respect of the acquisition of the relevant interest shall be construed as excluding so much (if any) of that compensation as is attributable to disturbance or to severance or injurious affection. (6) Nothing in this paragraph shall affect the amount which is to be taken for the purposes of section 20 of this Act (which relates to the consideration payable for the discharge of land from feu-duty and incumbrances) as the amount of the compensation payable in respect of the acquisition of the relevant interest. (7) In the application of this paragraph to any lands and heritages whose net annual value is ascertained under subsection (8) of section 6 of the Valuation and Rating (Scotland) Act 1956 (and for which there is therefore no gross annual value shown in the valuation roll)- (a) in sub-paragraph (2) above, for the word ’gross’ there shall be substituted the words ’1.25 times the net’; and (b) in sub-paragraph (4) above, for the word ’gross’, wherever it occurs, there shall be substituted the word ’net’. Interpretation 4 This Schedule shall be construed as one with Parts IV and XV of the Housing (Scotland) Act 1987.

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SCHEDULES 3

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Third Schedule Application of Part V to Certain Cases

Disturbance, severance and injurious affection 1 Subject to paragraph 2 of this Schedule, any reference in section 31 of this Act to the principal amount of any compensation shall be construed as including any sum attributable to disturbance, severance or injurious affection. 2 If the person entitled to the compensation under section 31 of this Act— (a) was, at the time of the compulsory acquisition or sale mentioned in subsection (1) of that section, entitled to an interest in other land contiguous or adjacent to the land acquired or purchased; but (b) is, at the time of the planning decision in question, no longer entitled to that interest, either in respect of the whole or in respect of part of that land; any reference in section 31 of this Act to the principal amount of any compensation or the amount of the purchase price shall be construed as excluding so much of the compensation or purchase price as was or would have been attributable to severance or injurious affection of that land or, as the case may be, of that part. Increase in value of contiguous or adjacent land 3 In determining for the purposes of section 31 of this Act the difference between the principal amount of the compensation specified in subsection (2) of that section and the principal amount of the compensation or the amount of the purchase price mentioned in subsection (1) of that section, in a case where— (a) the compensation or the purchase price was or would have been reduced (whether by virtue of section 14 of this Act or otherwise) by reason of an increase in the value of an interest in contiguous or adjacent land; but (b) at the time of the planning decision the person entitled to the compensation under section 23 of this Act is not entitled to the interest or is entitled to it only as respects part of the contiguous or adjacent land, the amount specified in section 31(2) and the principal amount or purchase price mentioned in section 31(1) shall be calculated as if the circumstances by reason of which it was or would have been so reduced had not existed or, as the case may be, as if the interest in the contiguous or adjacent land had subsisted only in that part of the land. Land held subject to heritable security 4 Subject to the provisions of this Schedule relating to settled land, where, in a case falling within section 31(1) of this Act, the interest in land which was acquired or sold was subject to a heritable security, any reference (however expressed) in section 31 or section 32 of this Act to the person entitled to the compensation or purchase price shall be construed as a reference to the person who, subject to the heritable security, was entitled to that interest, and not as a reference to the heritable creditor. 5 For the purposes of the application of section 31 of this Act, and of the provisions of this Schedule other than this paragraph, to a case falling within the preceding paragraph, any reference to the principal amount of the compensation which was or would have been payable in respect of any compulsory acquisition shall be construed as a reference to the principal amount of the compensation which would have been payable if the interest in question had not been subject to a heritable security. 6 No compensation shall be payable by virtue of section 31 of this Act in respect of a compulsory acquisition or sale by agreement where the interest acquired or sold was the interest of a heritable creditor (as distinct from an interest subject to a heritable security). Land held in trust 7 (1) Where, in a case falling within section 31(1) of this Act, the interest in land which was acquired or sold was subject to a trust, and accordingly the compensation or purchase price was payable to the trustees of that trust, any reference (however expressed) in section 31 or section 32 of this Act to the person entitled to the compensation or purchase price shall be construed as a reference to the trustees for the time being of the trust. (2) Where sub-paragraph (1) of this paragraph applies, section 31(4) of this Act shall not apply. (3) Any compensation paid to the trustees of the trust by virtue of section 31 of this Act in respect of a compulsory acquisition or sale by agreement shall be applicable by the trustees as if it were proceeds of the 1sale of the interest acquired or sold. (4) In this paragraph “trust” has the same meaning as in theTrusts (Scotland) Act 1921. Interpretation 8 References in this Schedule to sections 31 and 32 of this Act include references to those sections as applied by section 33 or 34 of this Act, and references to the time of any planning decision shall be construed accordingly.

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SCHEDULES 4

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