48No general market for interest acquired

48 No general market for interest acquired (a) an interest in land (the old land) is acquired from a person by (b) immediately before the acquisition, the person was using the old land, or intended to use the old land, for a purpose other than the carrying on of a business; and (c) but for the acquisition, the land would have been, or would have continued to be, used for that purpose; and (d) at the time of the acquisition, there was no general demand or market for land used for that purpose; and (e) the person has acquired, or intends to acquire, another interest in other land (the new land) in substitution for the acquired interest and intends to use the new land for the same purpose. (2) The market value of the acquired interest on the day of acquisition shall be taken to be the greater of— (a) the amount that, apart from this section, would be the market value (if any) of that interest on that day; and (b) the net acquisition cost, in relation to the interest in the new land. (3) The net acquisition cost, in relation to the interest in the new land, is the amount calculated in accordance with the formula: CA + E − FI where: CA means the amount of the cost, or the likely cost, to the person of the acquisition of the interest in the new land.

E means the amount of the expenses and losses incurred, or likely to be incurred, by the person as a result of, or incidental to, ceasing to use the old land and commencing to use the new land for the same purpose. FI means the present value of any real and substantial saving in recurring costs (relating to land or an interest in land) gained by the person as a result of the relocation.