47.—(1) The amount of compensation for improvements shall be such sum as may be agreed on between the landlord and the tenant or, in default of agreement, shall (subject to the provisions of this section) be the capitalised value of such addition to the letting value of the tenement at the termination of the tenancy as the Court determines to be attributable to the improvements.

(2) Where compensation for improvements is payable to the tenant by the landlord and the Court is satisfied that the tenant and (where applicable) his predecessors in title or any of them has or have received from the landlord benefits by way of reduction of rent or otherwise in consideration, expressly or impliedly, of the improvements being or having been made, the Court shall deduct from the compensation as ascertained under subsection (1) such sum as the Court thinks proper for the benefits.

(3) Where compensation for improvements is payable to the landlord by his superior landlord, the Court shall make such deduction (if any) from the compensation as ascertained under subsection (1) as the Court thinks proper for benefits received by the landlord and (where applicable) his predecessors in title or any of them by way of increased rent or otherwise on account of the improvements.

(4) The capitalised value for the purposes of this section of an addition to the letting value of a tenement shall be fixed by the Court having regard to the probable duration of such addition, the probable life of the improvement and all other relevant circumstances but shall not in any case exceed fifteen times the annual amount of the addition.