United Kingdom Statutory Instruments

(a) in relation to a natural person - 


(i) that person's spouse or any of that person's relatives;

(ii) any person with whom that person, that person's spouse or any of that person's relatives is in partnership; or

(iii) any body corporate of which that person, that person's spouse or any of that person's relatives is a director or controller;



(b) in relation to a body corporate - 



(i) any of its directors or controllers;

(ii) any subsidiary of the body corporate;

(iii) any of the directors or controllers of such a subsidiary;

(iv) if the body corporate is itself a subsidiary, any other subsidiary of the holding company they have in common;

(v) any director or controller of any such other subsidiary; or

(vi) any person with whom that body corporate is in partnership; or



(c) in relation to any person, the spouse or any of the relatives of any of the natural persons identified as associates elsewhere in this definition;

    (2) For the purposes of the definition specified in paragraph (1)  - 

"acting in concert" means acting in accordance with an agreement or arrangement with respect to either - 

(a) the acquisition, holding or disposal of shares or other interests in a body corporate; or

(b) the exercise of voting power in a body corporate;

"controller" means (in relation to a body corporate) any person - 

(a) in accordance with whose directions or instructions the directors of that body corporate or of any other body corporate which is its controller are accustomed to act; or

(b) who (either alone or with any associate or with any person with whom he is acting in concert) is entitled to exercise or control the exercise of at least one-third of the voting power at any general meeting of that body corporate or of any other body corporate which is its controller;

"director" means - 

(a) in relation to a body corporate whose affairs are managed by a board of directors or similar body, a member of that board or body;

(b) in relation to a body corporate whose affairs are managed by a single director or similar person, that director or person; or

(c) in relation to a body corporate whose affairs are managed by the members themselves, a member of the body corporate;

(a) any statutory redundancy payments paid to employees formerly engaged solely or primarily in a qualifying business;

(b) any loss sustained on the sale or disposal of equipment used solely or primarily in a qualifying business where the proceeds of the sale or disposal are less than the discounted replacement cost of the equipment;

(c) the cost of removing and disposing of asbestos from any specialised building; and

(d) any contractual liability to a third party sustained as a result of having ceased to carry on a qualifying business

     3. Non-income losses shall be excluded for the purposes of paragraph 2 to the extent that - 

(a) they were sustained or incurred otherwise than as a result of ceasing, by reason of the enactment or coming into force of section 1 of the Act, to carry on a qualifying business;

(b) they were not reasonably sustained or incurred; or

(c) they are recoverable from any other source.

(a) signed by the applicant; or

(b) signed on the applicant's behalf by a person with authority to bind the applicant.

Essential application information
     2.  - (1) An application shall be made in writing and shall contain the following - 

(a) in the case of a sole trader, that person's name and home address;

(b) in the case of a partnership, the names and home addresses of the partners;

(c) in the case of a body corporate - 


(i) the body corporate's registered name, place of registration, registered address and any registration number; and

(ii) the names and addresses of the directors and any controllers of the body corporate;



(d) the address of the applicant's principal place of business and, if different, any address at which he kept mink for one or more of the relevant purposes within the last five years;

(e) the address to which any correspondence relating to the application should be sent;

(f) any trading name used by the applicant within the last five years;

(g) the date on which the applicant ceased to carry on his qualifying business;

(h) the reason for the applicant ceasing to carry on his qualifying business;

(i) the name and address of the applicant's book-keeper or accountant (if any);

(j) the total amount claimed by the applicant in accordance with Schedule 6; and

(k) the net trading profits of the applicant's qualifying business for each of the accounting periods comprising the reference period.

    (2) The application shall as appropriate also contain the following information - 

(a) make a written request to the applicant requiring him to provide additional information in support of his application, specifying - 


(i) the nature of the information requested; and

(ii) her reasons for making the request;



(b) make a determination of entitlement in respect of the applicant and notify the applicant in writing that she has done so; or

(c) notify the applicant in writing that his application has been unsuccessful, specifying the reasons why she considers that the applicant does not fulfil the requirements set out in article 3.

Request for further information
     2. If the Secretary of State makes a written request for further information in accordance with paragraph 1(a), the applicant shall, within three months from the date on which the request is made, provide - 

(a) the further information requested; and

(b) a signed statement that the further information provided is true to the best of the applicant's knowledge and belief.

     3. The Secretary of State shall, within three months of the date on which either she receives the information requested in accordance with paragraph 1(a) or the date on which the period referred to in paragraph 2 expires (as the case may be), either - 

(a) make a determination of entitlement in respect of the applicant and notify the applicant in writing that she has done so; or

(b) notify the applicant in writing that his application has been unsuccessful, specifying the reasons why she considers that the applicant does not fulfil the requirements set out in article 3.

Reconsideration of initial decision
     4.  - (1) If the Secretary of State does not make a determination of entitlement in respect of an applicant and notifies him in accordance with paragraph 1(c) or paragraph 3(b) (as the case may be) that his application has been unsuccessful, the applicant may, within three months of the date on which the Secretary of State so notifies him, request the Secretary of State to reconsider her decision.

    (2) If the Secretary of State revokes a determination of entitlement and notifies the person in respect of whom the determination of entitlement had been made in accordance with article 5(4) that she has done so, the applicant may, within three months of the date on which the Secretary of State so notifies him, request the Secretary of State to reconsider her decision.

    (3) A request for reconsideration made in accordance with sub-paragraph (1) or sub-paragraph (2) - 

(a) shall be made in writing;

(b) shall specify the grounds upon which the applicant wishes the Secretary of State to reconsider her decision;

(c) may be supported by any additional information which is relevant and material to the request for reconsideration; and

(d) shall be accompanied by a signed statement that any information contained in or supporting the request for reconsideration is true to the best of the applicant's knowledge and belief.

     5. The Secretary of State shall, within three months of the date on which she receives a request for reconsideration made in accordance with paragraph 4(1) or paragraph 4(2) (as the case may be), either - 

(a) make a determination of entitlement in respect of the applicant and notify the applicant of her decision; or

(b) notify the applicant in writing that his request for reconsideration has been unsuccessful, specifying the reasons why she considers that the applicant does not fulfil the requirements set out in article 3.

Dispute resolution
     6. If the Secretary of State - 

(a) notifies a person in respect of whom a declaration of entitlement had been made in accordance with article 5(4) that she has revoked the declaration of entitlement;

(b) notifies an applicant in accordance with paragraph 1(c) that his application has been unsuccessful;

(c) notifies an applicant in accordance with paragraph 3(b) that his application has been unsuccessful; or

(d) notifies an applicant in accordance with paragraph 5(b) that his request for reconsideration has been unsuccessful,

the person in respect of whom the declaration of entitlement had been made or the applicant (as the case may be) may, within one month of the date on which the Secretary of State so notifies him, give notice to the Secretary of State in writing that he disputes the determination of his entitlement to compensation under this Order.

     7. If a person in respect of whom a declaration of entitlement has been made and subsequently revoked or an applicant (as the case may be) gives notice in accordance with paragraph 6, he and the Secretary of State may agree in accordance with section 5(5) of the Act to refer the dispute to arbitration, conducted in such manner as may be agreed between them.

(a) make a written request to the entitled applicant requiring him to provide additional information in support of his application, specifying - 


(i) the nature of the information requested; and

(ii) her reasons for making the request; or



(b) make a determination as to the amount in respect of the entitled applicant and notify him in writing that she has done so, specifying-



(i) the total amount payable to that entitled applicant in accordance with the provisions of Schedule 6;

(ii) the amount payable to that entitled applicant in accordance with each of Parts 3 to 8 of Schedule 6;

(iii) any amount to be deducted in accordance with Part 9 of Schedule 6 from the compensation otherwise payable to that entitled applicant; and

(iv) where the amount payable or to be deducted (as the case may be) in accordance with any Part of Schedule 6 differs from the corresponding amount in the entitled applicant's claim, the reasons for the difference.

Request for further information
     2. If the Secretary of State makes a written request for further information in accordance with paragraph 1(a), the entitled applicant shall, within three months from the date on which the request is made, provide - 

(a) the further information requested; and

(b) a signed statement that the further information provided is true to the best of the applicant's knowledge and belief.

     3. The Secretary of State shall, within three months of the date on which either she receives the information requested in accordance with paragraph 1(a) or the date on which the period referred to in paragraph 2 expires (as the case may be), make a determination as to amount in respect of the entitled applicant and notify him in writing that she has done so, specifying - 

(a) the total amount payable to that entitled applicant in accordance with the provisions of Schedule 6;

(b) the amount payable to that entitled applicant in accordance with each of Parts 3 to 8 of Schedule 6;

(c) any amount to be deducted in accordance with Part 9 of Schedule 6 from the compensation otherwise payable to that entitled applicant; and

(d) where the amount payable or to be deducted (as the case may be) in accordance with any Part of Schedule 6 differs from the corresponding amount in the entitled applicant's claim the reasons for the difference.

Acceptance of determination
     4.  - (1) An entitled applicant shall, within three months from the date on which the Secretary of State makes a determination as to amount in accordance with paragraph 1(b) or paragraph 3 (as the case may be), notify the Secretary of State in writing as to whether or not he accepts that determination.

    (2) A person in respect of whom a revised determination as to amount is made in accordance with article 6(5) shall, within one month from the date on which the Secretary of State notifies him of her revised determination as to amount in accordance with article 6(7), notify the Secretary of State in writing as to whether or not he accepts that revised determination.

Reconsideration of initial decision
     5.  - (1) If an entitled applicant does not accept the determination as to amount made in respect of him, he may, within three months of the date on which the Secretary of State notifies him of her determination as to amount, request the Secretary of State to reconsider her decision.

    (2) If a person in respect of whom a revised determination as to amount is made in accordance with article 6(5) does not accept that revised determination, he may, within one month of the date on which the Secretary of State notifies him in accordance with article 6(7) of her revised determination as to amount, request the Secretary of State to reconsider her decision.

    (3) A request for reconsideration made in accordance with sub-paragraph (1) or sub-paragraph (2) - 

(a) shall be made in writing;

(b) shall specify the grounds upon which the entitled applicant wishes the Secretary of State to reconsider her decision;

(c) may be supported by any additional information which is relevant and material to the request for reconsideration; and

(d) shall be accompanied by a signed statement that any information contained in or supporting the request for reconsideration is true to the best of the entitled applicant's knowledge and belief.

     6.  - (1) The Secretary of State shall, within three months of the date on which she receives a request for reconsideration made in accordance with paragraph 5(1) either - 

(a) make a revised determination as to amount in respect of the entitled applicant and notify him in writing that she has done so, specifying-


(i) the extent to which she has revised the determination as to amount she made in accordance with paragraph 1(b) or paragraph 3 (as the case may be); and

(ii) where the revised amount payable or to be deducted (as the case may be) in accordance with any Part of Schedule 6 differs from the corresponding amount in the entitled applicant's original claim, the reasons for the difference; or



(b) confirm the determination as to amount she made in accordance with paragraph 1(b) or paragraph 3 (as the case may be) and notify the entitled applicant in writing that his request for reconsideration has been unsuccessful, specifying the reasons why she has not revised her determination as to amount.

    (2) The Secretary of State shall, within three months of the date on which she receives a request for reconsideration made in accordance with paragraph 5(2), either - 

(a) make a further revised determination as to amount in respect of the person in respect of whom a revised determination as to amount had been made in accordance with article 6(5) and notify him in writing that she had done so, specifying-


(i) the extent to which she has further revised the determination as to amount in accordance with article 6(5), and

(ii) where the further revised amount payable or to be deducted (as the case may be) in accordance with any Part of Schedule 6 differs from the corresponding amount in the revised determination as to amount, the reasons for the difference; or



(b) confirm her revised determination as to amount made in accordance with article 6(5) and notify the entitled applicant in writing that his request for reconsideration has been unsuccessful, specifying the reasons why she has not further revised her determination as to amount.

Acceptance of determination following reconsideration
     7.  - (1) An entitled applicant shall, within one month from the date on which the Secretary of State - 

(a) notifies him that she has made a revised determination as to amount in accordance with paragraph 6(1)(a); or

(b) notifies him that she has confirmed her original determination as to amount in accordance with paragraph 6(1)(b),

notify the Secretary of State as to whether or not he accepts that determination or revised determination (as the case may be).

    (2) A person in respect of whom a revised determination as to amount had been made shall, within one month from the date on which the Secretary of State - 

(a) notifies him that she has further revised her determination as to amount in accordance with paragraph 6(2)(a);

(b) notifies him that she has confirmed her revised determination as to amount in accordance with paragraph 6(2)(b),

notify the Secretary of State as to whether or not he accepts that revised determination or further revised determination (as the case may be).

Dispute resolution
     8.  - (1) If an entitled applicant does not accept a determination as to amount which has been, as the case may be - 

(a) made by the Secretary of State in accordance with paragraph 1(b),

(b) made by the Secretary of State in accordance with paragraph 3,

(c) revised by the Secretary of State in accordance with paragraph 6(1)(a), or

(d) confirmed by the Secretary of State in accordance with paragraph 6(1)(b)

he may, within one month of the date on which the Secretary of State notifies him of her decision, give notice to the Secretary of State in writing that there is a dispute to be resolved between them regarding the amount of compensation payable to him under this Order.

    (2) If a person in respect of whom a revised determination as to amount has been made in accordance with article 6(5) does not accept a revised determination as to amount which has been, as the case may be-

(a) made by the Secretary of State in accordance with article 6(5),

(b) further revised by the Secretary of State in accordance with paragraph 6(2)(a),

(c) confirmed by the Secretary of State in accordance with paragraph 6(2)(b)

he may, within on month of the date on which the Secretary of State notifies him of her decision, give notice to the Secretary of State in writing that there is a dispute to be resolved between them regarding the amount of compensation payable to him under this Order.

     9. If an entitled applicant or a person in respect of whom a revised determination as to amount is made in accordance with article 6(5) gives notice in accordance with paragraph 8(1) or 8(2), he and the Secretary of State may agree in accordance with section 5(5) of the Act to refer the dispute to arbitration, conducted in such manner as may be agreed between them.

"qualifying clearance costs" means non-income losses of the kind referred to in paragraph 2(c) of Schedule 2;

"qualifying contractual liability" means non-income losses of the kind referred to in paragraph 2(d)of Schedule 2;

"qualifying equipment losses" means non-income losses of the kind referred to in paragraph 2(b)of Schedule 2;

"qualifying income losses" means income losses of the kind referred to in paragraph 1 of Schedule 2; and

"qualifying redundancy payments" means non-income losses of the kind referred to in paragraph 2(a) of Schedule 2.

(a) the amount (if any) calculated in accordance with Part 3 of this Schedule, payable in respect of any qualifying income losses sustained by the entitled applicant;

(b) the amount (if any) calculated in accordance with Part 4 of this Schedule, payable in respect of any qualifying redundancy payments made by the entitled applicant;

(c) the amount (if any) calculated in accordance with Part 5 of this Schedule, payable in respect of any qualifying equipment losses sustained by the entitled applicant,

(d) the amount (if any) calculated in accordance with Part 6 of this Schedule, payable in respect of any qualifying clearance costs sustained by the entitled applicant; and

(e) the amount (if any) calculated in accordance with Part 7 of this Schedule, payable in respect of any qualifying contractual liability sustained by the entitled applicant; and

(f) the amount (if any) calculated in accordance with Part 8 of this Schedule, payable in respect of any professional fees incurred by the entitled applicant; and

G equals the amount (if any) calculated in accordance with Part 9 of this Schedule, to be deducted from any compensation payable to the entitled applicant in respect of any relevant planning gain made by the entitled applicant or by any associate of the entitled applicant.

No compensation for excluded or other losses
     3. Compensation shall not be payable in respect of any losses other than those specified in Schedule 2.

     4. Compensation shall not be payable in respect of any non-income loss which is excluded for the purposes of paragraph 2 of Schedule 2 by virtue of paragraph 3 of that Schedule.

(a) subject to paragraphs 7 to 9, the average net trading profits of an entitled applicant's qualifying business shall be the amount produced by the formula T ÷ 5, where - 


     T equals the total of the net trading profits of that qualifying business for each of the accounting periods comprising the reference period;



(b) for each accounting period, the net trading profits of the qualifying business shall be the net trading profits of that business assessed in accordance with UK GAAP;

(c) where, during an accounting period, a business carried on by an entitled applicant consisted partly of a qualifying business and partly of a non-qualifying business, the net trading profits of the qualifying business for that accounting period shall exclude any element of revenue or costs so far as it related to the non-qualifying business; and

(d) where, in any accounting period, any revenue or costs related partly to a qualifying business and partly to a non-qualifying business, such revenue or costs shall be apportioned between the qualifying business and the non-qualifying business in accordance with - 



(i) UK GAAP; and

(ii) accepted costing practice.

Change of accounting date during reference period
     7. Where the accounting date for an entitled applicant's qualifying business changed during the reference period and one or more accounting periods during the reference period were more or less than a year in length, the Secretary of State shall, subject to paragraphs 8 and 9, calculate P for the purposes of paragraph 5 on the basis of the average net trading profits of the qualifying business arrived at in accordance with paragraph 6 but by using a reasonable estimate of what the net trading profits for any such accounting period would have been had it been a year in length instead of the actual net trading profits for that accounting period.

Accounting periods affected by illegal activity
     8. The Secretary of State may, if she thinks fit in a particular case, exclude an accounting period from the calculation of the average net trading profits of a qualifying business in accordance with paragraph 6, where - 

(a) she is satisfied that the net trading profits of the qualifying business for that accounting period have adversely been affected by the theft or unlawful release of mink, criminal damage or other illegal activity on the part of any person (whether or not that person's identity is known); and

(b) she is satisfied that the illegal activity referred to in sub-paragraph (a) was not carried out by an associate or an employee of the entitled applicant.

     9. Where an accounting period is excluded in accordance with paragraph 8, the Secretary of State shall calculate P for the purposes of paragraph 5 on the basis of the average net trading profits of the qualifying business arrived at in accordance with paragraph 6 but by using a reasonable estimate of what the net trading profits for the excluded accounting period would have been but for the illegal activity on the basis of which it was excluded instead of the actual net trading profits for that accounting period.

(a) the amount of any judgment or arbitral award made against an entitled applicant in respect of any contractual liability sustained by an entitled applicant as a result of having ceased, by reason of the enactment or coming into force of section 1 of the Act, to carry on a qualifying business; or

(b) the amount of any reasonable settlement made by an entitled applicant in respect of a claim against him for such contractual liability.

     17.  - (1) No payment shall be made to an entitled applicant in accordance with paragraph 16  - 

(a) subject to sub-paragraph (2), in respect of any liability to an associate of the entitled applicant;

(b) where the liability was incurred under a contract which was entered into after 2nd March 1999;

(c) to the extent that any judgment or arbitral award made against an entitled applicant would be unenforceable in England;

(d) to the extent that the liability is recoverable from any other source.

    (2) The Secretary of State may, if she thinks fit in an appropriate case, waive any exclusion that would otherwise operate by virtue of sub-paragraph (1)(a).