CG72100 | Land: compulsory purchase of land: introduction
From HM Revenue & Customs · Capital Gains Manual
Compulsory purchase of land
TCGA92/S245
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:
Date of disposal, see CG72101.
Roll-over relief, see CG61900P.
Small part disposals, see CG72200.