(1) Where an interest in land the value of which is to be ascertained in accordance with the provisions of Section (Compensation for compulsory purchase after appointed day) of this Act is an interest in a hereditament or part of a hereditament which has sustained war damage, and any of that damage has not been made good at the date of the notice to treat, then if the appropriate payment under the War Damage Act, 1943, would, apart from the compulsory purchase or apart from any direction given by the Treasury under Section twenty of that Act, be a payment of cost of works—

1. (a) the value of the interest for the purposes of the compensation payable in respect of the compulsory purchase shall, subject to the provisions of this Section, be taken to be the value which it would have if the whole of the damage had been made good before the date of the notice to treat; and
2. (b) the right to receive any value payment or share of a value payment which, under the War Damage Act, 1943, is payable in respect of the interest which is compulsorily acquired (including any interest payable thereon) shall, notwithstanding anything in that Act, vest in the person by whom the interest is so acquired.