Section 24: Advance payments, Neighbourhood Planning Act 2017

This section applies where a person (a "claimant") to whom compensation is or will be payable under section 23 makes a request in accordance with subsection (3).

The acquiring authority—

must make an advance payment on account of the compensation if it has given a notice of intended entry under section 20 in relation to the land in respect of which the claimant is or will be entitled to compensation, but

may not do so if it has not given such a notice.

A request for advance payment must be made in writing by the claimant and must include—

details of the basis on which the claimant is or is going to be entitled to compensation, and

information which is sufficient to enable the acquiring authority to estimate the amount of the compensation in respect of which the advance payment is to be made.

Before the end of the period of 28 days beginning with the day on which the acquiring authority receives a request under subsection (3), the authority must—

determine whether it has enough information to estimate the amount of compensation, and

if it needs more information, require the claimant to provide it.

The amount of an advance payment is to be equal to 90% of—

if the acquiring authority and the claimant have agreed on the amount of the compensation, the agreed amount, or

in any other case, an amount equal to the compensation as estimated by the acquiring authority.

An advance payment must be made—

before the end of the day on which the authority takes temporary possession of the land, or

if later, before the end of the period of two months beginning with the day on which the authority—

receives the request for the advance payment, or

receives any further information required under subsection (4)(b).

If, after making an advance payment on the basis of its estimate of the compensation, the acquiring authority considers that its estimate was too low, the authority must pay the claimant the balance of the amount of the advance payment calculated on the basis of the authority's new estimate of the compensation.

Where the total amount of any payments under this section made on the basis of the acquiring authority's estimate of the compensation exceeds the compensation as finally determined or agreed, the excess is to be repaid.

If, after a payment under this section has been made to a person, it is discovered that the person was not entitled to it, the person must repay it.

Section 24: Advance payments

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