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HMRC internal manual

Capital Gains Manual

Land: compulsory purchase of land: introduction

Compulsory purchase of land

TCGA92/S245

Where land in the UK is compulsorily acquired, the owner of that land is legally entitled to compensation. That compensation is calculated in one of two ways:

  • based on the value of the land for redevelopment; or
  • based on the current use value of the land, plus ‘disturbance’ and ‘severance’, see CG72101.

Certain special rules apply to such compensation payments: