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HMRC internal manual

Capital Gains Manual

Land: compulsory purchase of land: introduction

Compulsory purchase of land


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: