Brothers in land

I act for a partnership of two brothers trading in the retail sector. They trade from three branches in their locality. One of the branches operates from part of a freehold building jointly owned by them. The remainder of the building is let to an unrelated third party. A market rent is received by the partners and the historical cost of the whole of this property is included in the partnership balance sheet along with the associated mortgage.
A second branch operates from a freehold building also jointly owned by them. This building was gifted to them by their father and is wholly used in their trade but is not recognised on the partnership balance sheet.
The third branch operates from part of a freehold building jointly owned by them and a further brother. This building was also a gift from father. The further brother has no...