Q As it seems likely that my business will come under
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a compulsory purchase order, could you tell me how the compensation will be calculated?
A You should receive the value of your interest in the property and (if your interest is more than that of a yearly tentant), at the same time, compensation for disturbance. If you are involved in removal
expenses — and this would, of course, include printing new letterheads, invoices, etc — this would be part of your disturbance allowance.
Any fees incurred in preparing your claim and the depreciation in the value of fixtures which you have to remove such as stores, shelving and cupboards are also claimable. You may also be able to claim for goodwill but, of course, this will depend on whether or not you will continue trading close to your present location and with your present customers. If you lose your goodwill entirely, its value is likely to be calculated at the average annual profit over the last three years multiplied by a factor usually between one and two, sometimes more.