Compulsory Purchase Order Compensation Calculation

We are one of the most expert forensic accounting teams in the country for compulsory purchase order business valuation and compensation claims.

What is a Compulsory Purchase Order?

A Compulsory Purchase Order (CPO) is a legal function that allows certain bodies which need to obtain land or property to do so without the consent of the owner. Major national projects such as HS2, Crossrail 2, East West Rail Link and major road improvements, as well as urban regeneration projects rely on being able to use these powers to upgrade the nation’s infrastructure and cities.

compulsory purchase definition

The process of relocating a business is inherently complex, and is potentially stressful and fraught with risk. It will have many stages as redevelopment plans usually involve many stakeholders. The first indication is often an initial proposal put out for consultation by the acquiring authority. It will generally be many years before the compulsory purchase takes effect and the compensation claim is submitted, negotiated and agreed.

One individual decided to write a book (Lance Forman on Forman’s Games) about his experience of compulsory purchase and this firm organised a seminar for leading practitioners in the field in 2018 to hear his views on how the process could be improved (read his fascinating story here).

How we can help you with compulsory purchase compensation?

We have advised scores of clients on compulsory purchase order compensation for major national projects such as HS2, Crossrail, Thameslink Programme, London Olympics 2012 as well as as numerous town centre and urban regeneration projects around the country. We are a leading firm assisting business owners, occupiers and acquiring authorities negotiate compensation claims following compulsory purchase.

Our clients include businesses, surveyors, developers and acquiring authorities. While most of our cases have settled by negotiations, we have experience of presenting reports on business compensation and given oral evidence in leading reported cases decided by the Upper Tribunal Lands Chamber.

The team has considerable experience of calculating compulsory purchase compensation and has advised clients in a wide variety of industries and circumstances including the:

  • Value of the business for total or partial extinguishment
  • Lost profits through business interruption or blight
  • Lost profits through business relocation or extinguishment
  • Relocation costs
  • Losses when businesses unable to develop as originally planned
  • Management time incurred in dealing with CPO claims
  • Additional staff and redundancy costs
  • Additional operating costs incurred or continuing
  • Relocation and new build costs
  • Betterment
  • Risk of delays in relocating
  • Professional fees incurred as a result of compulsory purchase

The majority of our CPO extinguishment claims involve the valuation of businesses because either the:

  • owners have reached the eligible age to nominate to have their business extinguished;
  • business cannot find suitable alternative premises; or
  • business can partially relocate but part of the business has to be extinguished.

In any of these cases the owners are generally entitled to claim compensation for their losses.  We work with solicitors, counsel and surveyors to quantify compensation claims either on behalf of the owners or for the acquiring authority. Claimants have ranged from small retailers and workshops to national chains and manufacturers. The size of claims has be as little as tens of thousands to over £10 million.

Our professional fees are usually paid by the acquiring authority, even when we act for claimants.

Why you will need our help

Major infrastructure projects

Drawing on our contentious business valuation expertise we are often asked to value businesses on the principles established by statute and case law for this type of compensation.

A business may start to see the impact of an impending CPO many months (or even years) before the vesting date. Again we can use our expertise to help businesses quantify and claim these pre-possession losses. We can help with compensation claims, either for the owners or the acquiring authority.

Our founder, Charles Lazarevic, has given expert evidence in leading cases before the Upper Tribunal Lands Chamber. He is an active member of the Compulsory Purchase Association, which provides training and support to leading practitioners in this field, and he was on the Association’s Committee from 2010 to 2012.

Want to learn more about our forensic accounting services?

We would be delighted to hear from you and to discuss on a “without commitment” basis how we may be able to help you. Click on one of the icons to contact us, read testimonials or to read our case studies and judgments where we have given evidence.

Read more about our forensic accounting services here or find out more about our forensic accounting consultants here.