1. The reduction in value shall, subject to the other provisions of this Schedule, be determined by reference to the difference between the antecedent and subsequent values of the land, where—

(a) the antecedent value of the land is the amount which the land, if sold in the open market by a willing seller immediately prior to the relevant decision under Part III (and assuming that the relevant application for permission had not been made), might have been expected to realise, and

(b) the subsequent value of the land is the amount which the land, if sold in the open market by a willing seller immediately after that decision, might be expected to realise.

2. In determining the antecedent value and subsequent value of the land for the purposes of paragraph 1—

(a) regard shall be had to—

(i) any contribution which a planning authority might have required or might require as a condition precedent to development of the land,

(ii) any restriction on the development of the land which, without conferring a right to compensation, could have been or could be imposed under any Act or under any order, regulations, rule or bye-law made under any Act,

(iii) the fact that exempted development might have been or may be carried out on the land, and

(iv) the open market value of comparable land, if any, in the vicinity of the land whose values are being determined;

(b) no account shall be taken of—

(i) any part of the value of the land attributable to subsidies or grants available from public moneys, or to any tax or rating allowances in respect of development, from which development of the land might benefit,

(ii) the special suitability or adaptability of the land for any purpose if that purpose is a purpose to which it could be applied only in pursuance of statutory powers, or for which there is no market apart from the special needs of a particular purchaser or the requirements of any statutory body as defined in paragraph 5:

Provided that any bona fide offer for the purchase of the land which may be brought to the notice of the arbitrator shall be taken into consideration,

(iii) any increase in the value of land attributable to the use thereof or of any structure thereon in a manner which could be restrained by any court, or is contrary to law, or detrimental to the health of the inmates of the structure, or to public health or safety, or to the environment,

(iv) any depreciation or increase in value attributable to the land, or any land in the vicinity, being reserved for a particular purpose in a development plan,

(v) any value attributable to any unauthorised structure or unauthorised use,

(vi) the existence of proposals for development of the land or any other land by a statutory body, or

(vii) the possibility or probability of the land or other land becoming subject to a scheme of development undertaken by a statutory body;

and

(c) all returns and assessments of capital value for taxation made or acquiesced in by the claimant may be considered.

3. (1) In assessing the possibilities, if any, for developing the land, for the purposes of determining its antecedent value, regard shall be had only to such reasonable possibilities as, having regard to all material considerations, could be judged to have existed immediately prior to the relevant decision under Part III.

(2) Material considerations for the purposes of subparagraph (1) shall, without prejudice to the generality thereof, include—

(a) the nature and location of the land,

(b) the likelihood or unlikelihood, as the case may be, of obtaining permission or further permission, to develop the land in the light of the provisions of the development plan,

(c) the assumption that, if any permission to develop the land were to be granted, any conditions which might reasonably be imposed in relation to matters referred to in the Fifth Schedule (but no other conditions) would be imposed, and

(d) any permission to develop the land, not being permission for the development of a kind specified in section 192(2), already existing at the time of the relevant decision under Part III.

4. (1) In determining the subsequent value of the land in a case in which there has been a refusal of permission—

(a) it shall be assumed, subject to subparagraph (2), that, after the refusal, permission under Part III would not be granted for any development of a kind specified in section 192(2),

(b) regard shall be had to any conditions in relation to matters referred to in the Fifth Schedule (but no other conditions) which might reasonably be imposed in the grant of permission to develop the land.

(2) In a case in which there has been a refusal of permission in relation to land in respect of which there is in force an undertaking under Part VI of the Act of 1963, it shall be assumed in determining the subsequent value of the land that, after the refusal, permission under Part III of this Act would not be granted for any development other than development to which the undertaking relates.

5. (1) In paragraph 2, “statutory body” means—

(a) a Minister of the Government,

(b) the Commissioners,

(c) a local authority within the meaning of the Local Government Act, 1941,

(d) a harbour authority within the meaning of the Harbours Act, 1946,

(e) a health board established under the Health Act, 1970,

F1259[(f) an education and training board,]

(g) a board or other body established by or under statute,

(h) a company in which all the shares are held by, or on behalf of, or by directors appointed by, a Minister of the Government, or

(i) a company in which all the shares are held by a board, company, or other body referred to in subparagraph (g) or (h).

(2) In clauses (h) and (i) of subparagraph (1), “company” means a company within the meaning of section 2 of the Companies Act, 1963.