On the dissolution of a partnership carried on by two individuals upon the retirement of a partner, the other partner did not acquire partnership goodwill from the retiring partner but instead acquired the retiring partner’s 50% interest in the partnership property.

A partnership was formed in February 1999 between two individuals (AB and DC) to run an estate agency business, which had been in existence since November 1991. DC retired on 31 October 2010, and AB continued the business as a sole trader. A deed of retirement concluded in September 2011 provided that in consideration for the transfer of the partnership property by DC to AB, the sum