The right to compensation and how the amount of compensation is calculated are derived from a combination of statute, case law and established practice. This is referred to as the ‘Compensation Code’. The principal statutes are the Land Compensation Acts of 1961 and 1973 and the Compulsory Purchase Act 1965. There is a right to compensation for situations both where land is taken, or only nearby land is taken.
The general principle is that owners and occupiers of land should be financially no worse off (and no better off) after the compulsory purchase order (CPO) than before.
