Section 196 — Housing and Planning Act 2016: Interest on advance payments of compensation

Interest on advance payments of compensation 196 1 The Land Compensation Act 1973 is amended as follows.

2 In section 52A (right to interest where advance payment made)—

a in subsection (2), after the words “payment under section 52(1)” insert “ after the date of entry ” ;

b after subsection (2A) insert— 2B In respect of any period in relation to which the acquiring authority is required to pay interest under section 52B (interest on advance payment), the interest payable under subsection (2) is limited to the interest which accrues on the difference between the total amount and the paid amount.

3 After section 52A insert— Interest on advance payments of compensation paid late 52B 1 If the acquiring authority are required by section 52(1A) or (1B) to make an advance payment of compensation but pay some or all of it late, the authority must pay interest on the amount which is paid late (“the unpaid amount”).

2 Interest under subsection (1) accrues on the unpaid amount for the period beginning with the day after the last day on which payment could have been made in accordance with section 52(4) or (4ZA).

3 If the amount of the advance payment is greater than the compensation as finally determined or agreed (“the actual amount”), the claimant must repay any interest paid under this section that is attributable to the amount by which the advance payment exceeded the actual amount.

4 The Treasury must by regulations specify the rate of interest for the purposes of subsection (1).

5 Regulations under subsection (4) may contain further provision in connection with the payment of interest under subsection (1).

6 Regulations under subsection (4) are to be made by statutory instrument.

7 A statutory instrument containing regulations under subsection (4) is subject to annulment in pursuance of a resolution of either House of Parliament.