When calculating compensation on the compulsory purchase of property occupied by a partnership, an allowance should be made for managerial or supervisory wages by adding back the wages or drawings of both partners to the average net profits for three years. This was because the council were required to take the premises and the business as they found them and the business was a partnership of the two claimants and it was irrelevant that it might have been bought by a limited company if sold as a going concern.
Citations:
[1974] 14 RVR 139
Jurisdiction:
England and Wales
Cited by:
Cited – Halil v London Borough of Lambeth LT 2-Mar-2001
LT COMPENSATION – compulsory acquisition of leasehold shop and premises – total extinguishment of business – disturbance – analysis of accounts – treatment of wife’s earnings – depreciation of capital assets – . .
Lists of cited by and citing cases may be incomplete.
Land
Updated: 07 December 2022; Ref: scu.230996