This section applies where—
in pursuance of an enactment providing for the acquisition or taking of possession of land compulsorily an acquiring authority—
acquires the interest of the landlord in land subject to a tenancy, or
acquires the interest of the tenant in, or takes possession of, land subject to a tenancy, and
before the authority acquired the interest or took possession of the land, the tenant under the tenancy was carrying on a trade or business on the land.
The principles in subsections (3) and (4) are to be applied in assessing the compensation payable by the authority to the landlord or the tenant in respect of the acquisition of the interest in or the taking of possession of the land or, as the case may be, under section 121 of the Lands Clauses Consolidation Act 1845 or section 20 of the Compulsory Purchase Act 1965 (tenants from year to year etc).
Regard must be had to—
the likelihood of the continuation or renewal of the tenancy,
in the case of a tenancy to which Part 2 of the Landlord and Tenant Act 1954 (security of tenure for business tenants) applies, the right of the tenant to apply for the grant of a new tenancy,
the total period for which the tenancy may reasonably have been expected to continue, including after any renewal, and
the terms and conditions on which a tenancy may reasonably have been expected to be renewed or continued.
It is to be assumed that neither the acquiring authority nor any other authority possessing compulsory purchase powers have acquired or propose to acquire any interest in the land.