Welsh Government Land Acquisition Team Department for Economy, Science and Transport Cathays Park Cardiff CF10 3NQ

Transcription

1 Welsh Government Land Acquisition Team Department for Economy, Science and Transport Cathays Park Cardiff CF10 3NQ Applications for an advance payment of compensation under Section 52 of the Land Compensation Act 1973 A person who is entitled to compensation (the claimant ) for the compulsory purchase of their interest in land by the Welsh Ministers may make a written request for an advance payment on account of any compensation payable for the acquisition of their interest. Advance payments of compensation are made without prejudice to negotiating a final agreement on any compensation due. Additional advance payments can be requested whenever there is an increase in the Welsh Government s estimate of compensation due or when the final amount of compensation has been agreed. The total amount of the advance payment(s) will be 90% of the Welsh Government s valuer s estimate of compensation when the advance is requested, or 90% of the finally agreed compensation when negotiations have been concluded. Where negotiations have not been concluded, the claimant or their agent should contact the Welsh Government s Valuer to request the current estimate of compensation before completing their application for an advance payment. No advance payment can be made in respect of land that is subject to a mortgage where the outstanding principal exceeds 90% of the advance otherwise payable. In other cases the advance of compensation will be reduced by such sum as is required to secure the release of the interest of the mortgagee. An advance payment can be made to the mortgagee if the claimant so requests and the mortgagee consents to receive the payment. The Solicitors acting for the Welsh Government will require the claimant (or their solicitor) to provide evidence of entitlement to transfer the interest in the land being acquired. Please ensure that your solicitor has access to any documents showing title to the property. This will help avoid delay in paying any compensation due. The Welsh Government will also request a Solicitors Report on Title from the claimant s solicitor whenever a request for an advance payment of compensation is made. The processes of making advance payments and progressing the land transfer run in parallel until the final payment of compensation is made with the completion of the transfer of title or rights. The claimant will be asked, on each occasion, to agree the amount of the advance payment to be made and to agree any sum to be paid to a mortgagee to discharge their interest. Any statutory interest due on the compensation will be paid with the advance payment. Where the claimant has engaged an agent or surveyor to negotiate the claim, their agreed fees form part of the overall compensation payable. For convenience, however, such fees and any associated statutory interest will be shown separately from other compensation. Payment will be made direct to the agent or surveyor unless the claimant informs us that they wish to receive it to pay their agent s fees. Where the claimant is registered for VAT and is able to recover the VAT on their costs (including agent/surveyor s fees) then the VAT is excluded from the compensation. Where the claimant is registered for VAT and notifies, or has notified, HM Revenue and Customs that they will exercise their option to tax the sale of eligible land and buildings this must be brought to the attention of the Welsh Government and our Valuer so that the correct amount of VAT can be paid. A local land charge will be registered with the local authority immediately prior to any advance being paid.

2 Welsh Government Land Acquisition Team Department for Economy, Science and Transport Cathays Park Cardiff CF10 3NQ Guidance on completing an application for an advance payment of compensation under Section 52 of the Land Compensation Act All matters relating to the acquisition of highways land and payment of compensation are handled by: Land Acquisition Team, Department for Economy, Science and Transport Welsh Government Cathays Park Cardiff CF10 3NQ To enable us to deal with an application for an advance payment promptly and efficiently we need to have the following information: a) Details of the claimant b) Evidence that the claimant is entitled to the compensation. c) Evidence that any mortgage interest has been disclosed and that any relevant mortgagee s interest will be discharged. d) Details of the VAT status of the claimant. e) A report from the Welsh Government s Valuer. f) Details of the claimant s preferred method of receiving payment. The claimant should use the services of a solicitor to evidence their entitlement to land title and/or rights. We would also recommend that the advice of a solicitor is taken on the submission of an application for an advance payment. To assist claimants a pro-forma application is attached. It consists of the following: APC01 Application for Advance Payment of Compensation Details of the claimant, particulars of the claimant s interest in the land. APC02 Solicitor s Report on Title Advance payments of compensation can only be made where the Welsh Ministers are acquiring title or rights over land. A Solicitor s Report on Title is requested on each occasion prior to any advance payment being made to verify the continuing entitlement of the claimant. APC03 Mortgagee s Declaration Required whenever the Solicitor s Report on Title discloses a mortgagee s interest in the land. The claimant s solicitor should complete the details in Section A and forward the form to the mortgagee to complete Section B. No advance of compensation can be paid until the Welsh Government has an undertaking that will secure the release of the interest of the mortgagee. The claimant should ensure that such undertaking is in place before submitting an application for an advance payment otherwise payment will be delayed. The claimant can opt for an advance payment to be made direct to the mortgage, if the mortgage agrees to accept the payment. APC04 VAT Certificate Required with the first application for an advance payment or if the VAT status of the claimant changes before the final payment of compensation is made. Where a VAT registered claimant is exercising their option to tax the sale of eligible land and buildings we require a copy of the notification sent to HM Revenue and Customs or a copy of HMRC s authorisation to exercise the option to tax and copy of the invoice. PL8 - Payment instructions Payments are made via the solicitors acting for the claimants and the claimant s agent s fees are paid direct to the agent unless claimants inform us to the contrary.

3 Land Compensation Act 1973 Application for Advance Payment of Compensation. Claimant - The person(s) or business entitled to receive compensation. Name Address Postcode Telephone Fax Description of land 16,229 sq mtrs, or thereabouts, of mainly pasture land and half widths of Trunk road to the east and west of the A470 Trunk road between Llanwrst and Bro Garmen Claimant s Declaration To be signed by all parties to a joint claim. I/We hereby apply for an advance payment of compensation to which I am/we are entitled under section 52 of the Land Compensation Act 1973 and I/we authorise the Welsh Government to pay any sums due according to the payment instruction above. Signature(s) Position if signing for Company Name(s) in BLOCK CAPITALS Date For Office Use only APC01 01/04 File Ref: BZ Finance Supplier No.

4 SOLICITOR S REPORT ON TITLE Welsh Government Case Reference BZ Road Improvement Scheme : Description of land located at : Identified on Plan reference: Plot number(s) Name of Claimants: I/We have investigated the title to the above-mentioned property and hereby certify that:- The property is vested in (give full name) *The property is of freehold tenure or *The property is of leasehold tenure with an unexpired term of and the annual ground rent is years (*delete as appropriate) *The title to the property is registered at HM Land Registry with (class of title) Title Number : title under *or The Title is not registered with HM Land Registry and the Title Deeds are in the possession of : (*delete as appropriate) The property is NOT subject to any subsisting mortgage or charge other than that/those details of which appears below (please make any necessary search in the land register or land charges register before completing this section):- Date Document Parties Mortgagee s Ref./Roll No. The Claimant(s) is(are)/not* in occupation of the property. (*delete as appropriate) Legal Practice Stamp Dated this day of 2014 Signed Name and address of Legal Practice (If not stamped) APC02 01/04 s

5 Mortgagee s Statement and Undertaking to Release Interest in Land Subject to Compulsory Purchase Land Compensation Act 1973 section 10(1) and section 52(6) Welsh Government Case Reference BZ Road Improvement Scheme : Description of land located at : Identified on the attached Plan reference: Various Land Interest Plans Plot number(s) Name of Claimant(s To: Mortgagee The Welsh Ministers are acquiring from the above-mentioned claimant the land that is shown coloured pink on the plan described above for the Road Improvement Scheme. The Claimants, or their solicitors, have stated that there is a mortgage/charge on this land and have named your company as mortgagee. The Claimants have applied for an advance payment of compensation. This advance of compensation can only be paid to the claimant where the sum required to release your interest in the specified land can be deducted from the payment otherwise due. The claimant can opt for an advance payment to be made direct to the mortgage company, if they agree to accept the payment. Otherwise the sum you require will be retained by the Welsh Government until completion of the transfer of title or redemption of the mortgage/charge if earlier. Please complete the statement below. If this land forms part of a larger interest and you are prepared to release the interest in the specified land without apportionment or consideration please enter Nil below. *The sum required to release our interest as mortgagee in the land being acquired by the Welsh Ministers as described above is We undertake to enter into a deed of release for our interest in the said land for the consideration stated above when requested to do so by the claimant or the Welsh Government. Mortgagee s Stamp Dated this day of 2014 Signed Name and address of Mortgagee (If not stamped) Unless instructed otherwise by the claimant s solicitor please return this form to the address at the top APC03 01/04

6 VALUE ADDED TAX CERTIFICATE For Payments due to be made under Land Compensation Act 1973 Welsh Government Case Reference Name of Claimant (s): BZ Address : Road Scheme: With reference to pending payments of compensation, costs and disbursements in the above matter, we the undersigned, *as our client s *accountants/ *auditors/ *solicitors hereby certify to the best of our knowledge: a) that *I am/*we are/*our client is not a taxable person for the purpose of Value Added Tax, *or b) that the relevant registered number for VAT is and on the basis of the last completed VAT return *I/*we/*our client would be entitled to recover all VAT on such costs and disbursements as input tax. *or c) that the relevant registered number for VAT is but no credit will be available in *my/*our/*our client s accounting with Customs and Excise for the VAT on the above costs and disbursements, *or d) that the relevant registered number for VAT is and on the basis of the last completed VAT return *I/ *we/*our client would be entitled to recover only % of the VAT on such costs and disbursements as input tax pursuant to Section 3 of the Finance Act *and (if appropriate) e) That *I/ *we/ *our client has elected to waive exemption and apply VAT to the sale of land and buildings in accordance with the VAT Act 1983 Sch.6A, para. 2(1). A copy of the acknowledgement from HM Customs and Excise of this election is enclosed. A VAT invoice will be provided, duly receipted, for each such transaction. *Please delete the alternatives that do not apply to yourself or your client Claimant s or their accountant/auditor/solicitor reference: Accountant/auditor/solicitor Stamp Dated this day of 2014 Signed Name and address of accountant/auditor/solicitor (If not stamped) APC04 01/04

7 Welsh Government/Llywodraeth Cymru Vendor details form / Ffurflen manylian cyflenwr CRM REF/Cyfeirnod CRM : HR- - Vendor Account Number/Rhif Cyfrif Cyflenwr Payee Name/ Enw'r talai Remittance Address/ Cyfeiriad Post Code/Cod post Telephone/Ffon Fax/Ffacs for Remittance/E-bost am hysbysiad talu for Purchase Orders/ E-bost am Ffurflen Archeb Brynu I/We hereby authorise the Welsh Government to pay any sums due, directly into the following Bank/Building Society account. Rwyf/rydym drwy hyn yn awdurdodi Llywodraeth Cymru i dalu unrhyw symiau dyledus, yn uniongyrchol i r Cyfrif Banc/Cymdeithas Adeiladu isod. Name of account holder/ Enw deiliad y cyfrif Bank Sort Code/ Cod Didoli r Banc Account No/ Rhif y Cyfrif (One digit per box) (Un digid fesul blwch) (One digit per box) (Un digid fesul blwch) Building Society Roll No/ Rhif Cymdeithas Adeiladu Full Name and Address of Bank/Building Society/ Enw a chyfeiriad llawn y Banc/Cymdeithas Adeiladu Your VAT number/ Eich Rhif TAW Signed/Llofnod Company Registration No/ Rhif Cofrestru r Cwmni Position in Company/Safle yn y Cwmni Name in BLOCK LETTERS/Enw mewn PRIFLYTHRENNAU Date/Dyddiad Our Ref: BZ PLEASE RETURN THE SIGNED FORM TO LLOFNODWCH Y FFURFLEN A'I DYCHWELYD I: Welsh Government, Land Acquisition, Cathays Park, CARDIFF, CF10 3NQ