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Relief road relief

21 February 2007
Issue: 4096 / Categories: Forum & Feedback

Our client is a tenant farmer under a farm business tenancy and he has received compensation in respect of the Birmingham North Relief Road. The compensation includes:

Our client is a tenant farmer under a farm business tenancy and he has received compensation in respect of the Birmingham North Relief Road. The compensation includes:

  • the loss of tenant's interest in land taken;
  • the loss of tenant's improvements; and
  • severance and injurious affection to the interest in the retained holding.

The capital gains position regarding compulsory purchase receipts in respect of freehold land is quite clear but I wonder whether there is any scope for exemption under the principles established in the case of Davis v Powell [1977] STC 32. Otherwise we assume that as the tenancy has been in existence since 1998 full business asset taper relief will be due. Readers' views are appreciated.
Query T16 961                                              — Compo.


Reply by Thicket:

The case of Davis v Powell [1977] STC 36 established that statutory compensation under...

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