BUSINESS TENANCIES ACT (NORTHERN IRELAND) 1964 - SECT 33 Measure of compensation for improvements.

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BUSINESS TENANCIES ACT (NORTHERN IRELAND) 1964 - SECT 33

Measure of compensation for improvements.

33.(1) The sum to be paid under this Part as compensation for any improvement
on premises comprised in a tenancy shall not exceed the lesser of

(a)the net addition to the value of those premises as a whole at the
termination of the tenancy which may be determined to be the direct result of
the improvement; or

(b)the reasonable cost of carrying out the improvement at the termination of
the tenancy, subject to a deduction of an amount equal to the cost, if any, of
putting the works constituting the improvement into a reasonable state of
repair, except so far as such cost is covered by the liability of the tenant
under any covenant or agreement as to the repair of the premises.

(2) In determining the amount of such net addition as is mentioned in
subsection (1)(a), regard shall be had to the purposes for which it is
intended that the premises shall be used after the termination of the tenancy,
and if it is shown that it is intended to demolish or to make structural
alterations in the premises or any part thereof or to use the premises for a
different purpose, regard shall be had to the effect of such demolition,
alteration or change of user on the additional value attributable to the
improvement, and to the length of time likely to elapse between the
termination of the tenancy and the demolition, alteration or change of user.

(3) In the absence of agreement between the parties, all questions as to the
right to compensation under this Part, or as to the amount thereof, shall be
referred to and determined by the Lands Tribunal, and if the Lands Tribunal
determines that, on account of the intention to demolish or alter or to change
the user of the premises, no compensation or a reduced amount of compensation
shall be paid, the Lands Tribunal may authorise a further application for
compensation to be made by the tenant if effect is not given to the intention
within such time as may be fixed by the Lands Tribunal.

(4) The Lands Tribunal in determining the compensation for an improvement
shall in reduction of the tenant's claim take into consideration

(a)any benefits which the tenant or his predecessors in title may have
received from the landlord or his predecessors in title in consideration
expressly or impliedly of the improvement;

(b)any grant paid or payable under any enactment to the tenant or any of his
predecessors in title towards the cost of such improvement.

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Northern Irish Legislation

BUSINESS TENANCIES ACT (NORTHERN IRELAND) 1964 - SECT 33